CAI-Asia OM Revised June 2010 by mmcsx

VIEWS: 82 PAGES: 211

									            CLEAN AIR INITIATIVE FOR
              ASIAN CITIES (CAI-ASIA),
                        CENTER, INC.




  CAI-ASIA CENTER
OPERATIONS MANUAL
                                    Background
The Clean Air Initiative for Asian Cities (CAI-Asia) Center Operations Manual is a
synthesis of the guiding principles, operating policies and procedures that govern the
general management, administration and financial management of the CAI-Asia Center
in the exercise of its mandate. It was put together based on established international
best case practices for non-profit organizations to, among others, ensure the efficient
operations of the Center and to guide the CAI-Asia Center members on the coordination
and control mechanisms in place.

The CAI-Asia’s transition into the CAI-Asia Center as an independent and regionally
recognized legal entity, following the approval by the CAI-Asia General Assembly during
its 12 December 2006 meeting in Yogyakarta, Indonesia, is significant in its efforts to
position itself as a force for positive changes in air quality management in the region. It
is a continuation of the CAI-Asia to the extent that the programmatic elements and
network relationships are to remain unchanged with further institutional development and
financial restructuring to be undertaken in the subsequent phases to set CAI-Asia on a
longer term and sustainable path.

Established in 2001 as a collaborative effort among the Asian Development Bank (ADB),
World Bank and the US-Asia Environmental Partnership (US-AEP), the CAI-Asia has
come to be an acknowledged regional convener and information exchange facilitator on
the subject of urban air quality, in the Asian region. The ADB, the World Bank and the
US AEP are fundamental to the establishment, development and the continued
existence of the CAI-Asia Partnership including the CAI-Asia Center.




                                                                                          i
CAI-Asia Center Operations Manual
Revised June 2010
List of Abbreviations

ADB                   Asian Development Bank
AQM                   Air Quality Management
BOT                   Board of Trustees, “Board”
BTOR                  Back to the office report
CAI-Asia              Clean Air Initiative for Asian Cities, “Center”
CAI-LAC               Clean Air Initiative for Latin American Cities
CAI-SSA               Clean Air Initiative for Sub-Saharan Africa
CAL                   Cash Advance Liquidation
CV                    Check Voucher
DSA                   Daily Subsistence Allowance
ED                    Executive Director
EOI                   Expression of Interest
FAS                   Finance and Administrative Services
FBS                   Fixed Budget Selection
HRD                   Human Resource Development
JV                    Journal Voucher
NGO                   Non-Government Organizations
NTP                   Notice to Proceed
OEB                   Operating Expenses Budget
OED                   Office of the Executive Director
OIC                   Officer-in-charge
OM                    Operations Manual
OR                    Official Receipt
PCL                   Petty Cash Liquidation
PER                   Performance Evaluation Report
PhP                   Philippine Peso
PO                    Purchase Order
PR                    Purchase Request
QBS                   Quality-Based Selection
QCBS                  Quality Cost Based Selection
RFP                   Request for Payment
RPC                   Request for Petty Cash
SLD                   Strategic Linkages Division
TA                    Travel Authorization
USD                   United States Dollar




Note:
References to ‘he, his or him’ are meant to be gender neutral


                                                                        ii
CAI-Asia Center Operations Manual
Revised June 2010
                                    Definitions

Air Quality                    The quality of air as expressed in concentration of
                               specific pollutants such as PM, SO2, NOx.

Air Quality Management         The set of procedures to maintain air quality at levels that
                               protect human health and provide protection to animals,
                               plants (crops, forests and natural vegetation),
                               ecosystems, materials and aesthetics, such as natural
                               levels of visibility.

Board                          The Board of Trustees responsible for exercising the
                               corporate powers of the Corporation

Business Plan                  Two yearly planning document which outlines the
                               operational plans of the Corporation and which serves as
                               the basis for formulating the budget of the Corporation

CAI-Asia Partnership           A non-legal, non-binding multi-stakeholder partnership
                               which brings together stakeholders from local and
                               national governments, civil society, academe, media,
                               private sector and development agencies in their aim to
                               improve air quality management in Asia by sharing
                               experiences and building partnerships

CAI-Asia Partnership           The body responsible for governing the activities of the
Council                        CAI-Asia Partnership

Operational Manual             A document describing the administrative and financial
                               procedures governing the activities of the Corporation

CAI-Asia Center Partners       Organizations with a mandate which is supportive of the
                               objectives of the CAI-Asia Center and which the Center
                               coordinates or cooperates with in the pursuit of its
                               objectives

Expression of Interest         A document submitted by a consultant or consulting firm
                               interested in applying for a consulting position offered by
                               the CAI-Asia Center which contains detailed information
                               on the consultant’s or the firm’s experience and
                               competence relevant to the assignment. Based on such
                               submissions, a shortlist is established and the individual
                               or firm with the most appropriate qualifications and
                               references is selected.

Remuneration Committee         The committee of the Board of Trustees which
                               determines, from time to time, the salary bands and
                               benefits of employees of the Corporation

                                                                                             iii
CAI-Asia Center Operations Manual
Revised June 2010
                                                Table of Contents

BACKGROUND ............................................................................................................... I

LIST OF ABBREVIATIONS ............................................................................................ II

DEFINITIONS ................................................................................................................ III

TABLE OF CONTENTS .................................................................................................. 1

CHAPTER 1: INTRODUCTION AND PURPOSE OF THE MANUAL ............................ 6
  1.1 Objectives and Structure of the Manual ........................................................... 6
  1.2 Updating and Approval Process ....................................................................... 8

PART 1: THE CAI-ASIA CENTER - INSTITUTIONS AND PROCESSES ..................... 10

CHAPTER 2: PURPOSE, INSTITUTIONS AND PROCESSES ................................... 10
  2.1 Primary and Secondary Purpose ................................................................... 10
 2.2  Mission and Goals ......................................................................................... 10
 2.3  Regional scope .............................................................................................. 12
 2.4  Thematic scope ............................................................................................. 12
 2.5  Target Groups................................................................................................ 12
 2.6  Institutional Set-up ......................................................................................... 13
 2.7  Members........................................................................................................ 13
       2.7.1      Classification of Membership ................................................................................... 13
       2.7.2      Application Process ................................................................................................. 16
       2.7.3      Annual Meeting of Members .................................................................................... 16
   2.8         Board of Trustees .......................................................................................... 16
       2.8.1      Functions and Powers of the Board of Trustees ..................................................... 17
       2.8.2      Composition ............................................................................................................. 17
       2.8.3      Election and Term of Office ..................................................................................... 17
       2.8.4      Meetings .................................................................................................................. 18
       2.8.5      Board of Trustees Committees ................................................................................ 18
   2.9         Executive Officers .......................................................................................... 19
       2.9.1      The Chairman/President .......................................................................................... 20
       2.9.2      The Vice Chairman .................................................................................................. 20
       2.9.3      Executive Director .................................................................................................... 20
       2.9.4      Secretary .................................................................................................................. 21
       2.9.5      Treasurer ................................................................................................................. 22
   2.10        Branch/ Subsidiary Offices ............................................................................. 22
       2.10.1 Branch Office ........................................................................................................... 23
       2.10.2 Subsidiary Office ...................................................................................................... 23
       2.10.3 Guidelines and Procedures ..................................................................................... 23
   2.11        Linkage with other regional Clean Air Initiatives ............................................. 23
       2.11.1     Seal and Logo .......................................................................................................... 24
       2.11.2     Website .................................................................................................................... 24
       2.11.3     Membership in the CAI-Asia Center ........................................................................ 24
       2.11.4     Joint Activities .......................................................................................................... 24
   2.12 Policies on Anti-corruption ............................................................................. 24
   2.13 Policies on Endorsement ................................................................................... 25


                                                                                                                                               1
CAI-Asia Center Operations Manual
Revised June 2010
CHAPTER 3: PLANNING AND BUDGETING PROCESS ............................................ 27
  3.1 Business Plan: Rationale ............................................................................... 27
      3.1.1      Formulation .............................................................................................................. 27
      3.1.2      Activities and Approval Process .............................................................................. 27
      3.1.3      Review and Reporting.............................................................................................. 27
   3.2        Budgeting/Fund Programming ....................................................................... 27
   3.3        Resource Mobilization .................................................................................... 28

CHAPTER 4: THE CAI-ASIA CENTER MANAGEMENT SET-UP ................................ 29
  4.1 Support to CAI-Asia Partnership .................................................................... 29
 4.2  Office of the Executive Director ...................................................................... 30
 4.3  Deputy Executive Director.............................................................................. 30
 4.4  Finance and Administrative Services ............................................................. 31
      4.4.1      Functions ................................................................................................................. 32
   4.5        Policy and Partnerships ................................................................................. 32
      4.5.1      Functions ................................................................................................................. 33
   4.6        Knowledge and Communications ................................................................... 34
      4.6.1      Functions ................................................................................................................. 34
   4.7        Air Quality Program and Transport Program .................................................. 34
      4.7.1      Functions ................................................................................................................. 34
   4.8        Joint Activities ................................................................................................ 35
   4.9        Management Principles ................................................................................. 35
   4.10       Levels of Management and Delegation .......................................................... 35
   4.11       Policies on Signing Official Communications ................................................. 36
   4.12       External Relations .......................................................................................... 36
      4.12.1         Guidelines on Public Relations ............................................................................ 37
      4.12.2         Guidelines on Disclosure ..................................................................................... 37
      4.12.3         Guidelines on Media Coverage ........................................................................... 38
      4.12.4         Website and Listserv: .......................................................................................... 38

PART 2: ADMINISTRATION ........................................................................................ 39

CHAPTER 5: ADMINISTRATIVE POLICIES AND GUIDELINES ................................ 39
  5.1 Office Equipment, Facilities and Supplies ...................................................... 39
      5.1.1      Office Equipment ..................................................................................................... 39
      5.1.2      Supplies ................................................................................................................... 39
      5.1.3      Email Services ......................................................................................................... 39
      5.1.4      CAI-Asia Center Intranet .......................................................................................... 40
   5.2        Transportation................................................................................................ 40
      5.2.1      Land Transport......................................................................................................... 40
   5.2.2      Air Transport .................................................................................................. 40
   5.2.3      Standard flight service class .......................................................................... 41
      5.2.4      Per Diem and Related Travel Allowances ............................................................... 41
      5.2.5      Security .................................................................................................................... 42
      5.2.6      Seal and Logo Usage .............................................................................................. 42
   5.3        Records Management.................................................................................... 42
      5.3.1      Frequency ................................................................................................................ 43
      5.3.2      Retention Period ...................................................................................................... 43
      5.3.3      Records Protection Program ................................................................................... 44
      5.3.4      Confidentiality and Access ....................................................................................... 44
      5.3.5      Electronic Filing ........................................................................................................ 45
      5.3.6      Paper Filing .............................................................................................................. 45
      5.3.7      Email correspondence ............................................................................................. 46

                                                                                                                                               2
CAI-Asia Center Operations Manual
Revised June 2010
   5.4        Contract Management ................................................................................... 46

CHAPTER 6: HUMAN RESOURCES DEVELOPMENT ............................................... 47
  6.1 Guiding Principles .......................................................................................... 47
 6.2  CAI-Asia Center Staff Selection and Recruitment .......................................... 47
      6.2.1      Types of Appointment .............................................................................................. 47
      6.2.2      Recruitment and Selection Process......................................................................... 48
      6.2.3      Staff Performance Evaluation .................................................................................. 49
   6.3        Consultant Selection and Recruitment ........................................................... 50
      6.3.1      Types of Consultant Assignments ........................................................................... 50
      6.3.2      Types of Consultant Contracts ................................................................................ 50
      6.3.3      Eligibility ................................................................................................................... 51
      6.3.4      Selection of Individual Consultants .......................................................................... 51
      6.3.5      Selection Process for Consulting Firms ................................................................... 53
      6.3.6      Consultant Performance Evaluation: Guidelines ..................................................... 54
   6.4        Staff Benefits and Entitlements ...................................................................... 55
      6.4.1      Advancement , Promotion and Salary Increase ...................................................... 55
      6.4.2      Regular Benefits ...................................................................................................... 55
      6.4.3      Additional benefits.................................................................................................... 56
      6.4.4      Staff Development and Training .............................................................................. 56
      6.4.5      Salary Adjustments .................................................................................................. 57
      6.4.6      Overtime .................................................................................................................. 57
      6.4.7      Benefits for internationally recruited staff................................................................. 58
   6.5        Work Hours .................................................................................................... 58
   6.6        Official Holidays and Leave............................................................................ 58
   6.7        Harassment ................................................................................................... 59
   6.8        Separation ..................................................................................................... 60
      6.8.1      Resignation .............................................................................................................. 60
      6.8.2      Dismissal .................................................................................................................. 60
   6.9        Disciplinary Measures .................................................................................... 61
   6.10       Grievance and Appeals.................................................................................. 62
      6.10.1         Grievance Process .............................................................................................. 62
      6.10.2         Appeals Process .................................................................................................. 62

CHAPTER 7: PROCUREMENT ................................................................................... 63
 7.1  Objectives ...................................................................................................... 63
 7.2  Authority and Responsibility ........................................................................... 63
 7.3  Goods and Services....................................................................................... 63
      7.3.1      General Policies ....................................................................................................... 64
      7.3.2      Purchase Requisition and Approval......................................................................... 66
      7.3.3      Canvassing/Shopping Guidelines ............................................................................ 66
      7.3.4      Purchasing Committee............................................................................................. 67
      7.3.5      Preparation of Purchase Orders .............................................................................. 67
      7.3.6      Detailed Procedures ................................................................................................ 68

CHAPTER 8: PROJECT MANAGEMENT .................................................................... 69
  8.1 General Principles of Project Management .................................................... 69
  8.2 Project Proposals ........................................................................................... 69
      8.2.1      Selection of Project Proposal Areas/Topics............................................................. 69
      8.2.2      Development of Project Proposals .......................................................................... 69
      8.2.3      Submission of Proposals and Follow-up.................................................................. 70
   8.3        Contracting for Accepted Proposals ............................................................... 70
      8.3.1      Contract Review....................................................................................................... 70
      8.3.2      BoT Review and Approval Requirement.................................................................. 71
                                                                                                                                                 3
CAI-Asia Center Operations Manual
Revised June 2010
      8.3.3      Sub-contracting ........................................................................................................ 71
   8.4        Project Implementation and Reporting ........................................................... 71
      8.4.1      Project Initiation ....................................................................................................... 71
      8.4.2      Project Management and Progress Monitoring ....................................................... 72
      8.4.3      Project Closure ........................................................................................................ 73

PART 3: FINANCIAL MANAGEMENT, ACCOUNTING AND AUDIT ........................... 75

CHAPTER 9: GENERAL PRINCIPLES ........................................................................ 75
 9.1  Objectives of Financial Management, Accounting and Audit .......................... 75

THIS SECTION OF THE OPERATIONS MANUAL AIMS TO: ...................................... 75
  9.2   Method of Recognition of Financial Transactions ........................................... 75
  9.3   Responsibility for Monitoring and Control of Financial Transactions............... 76

CHAPTER 10. SOURCES AND RECOGNITION OF REVENUES............................... 77
  10.1 Sources of Revenues..................................................................................... 77
 10.2 Category of Revenues ................................................................................... 77
      10.2.1         Direct Revenues .................................................................................................. 77
      10.2.2         Indirect Revenues ................................................................................................ 77
   10.3       Recording and Documentation of Revenues and Cash Contributions ............ 78
   10.4       Set-up of Line of Credit .................................................................................. 79

CHAPTER 11. ASSET MANAGEMENT ...................................................................... 80
 11.1 Bank Accounts ............................................................................................... 80
      11.1.1         Authority and Approval Requirement on Bank Selection .................................... 80
      11.1.2         Types of Accounts Maintained ............................................................................ 80
      11.1.3         Check/Bank Advise Signatories and Changes in Signatories ............................. 80
      11.1.4         Electronic Banking ............................................................................................... 81
   11.2       Investment Strategies .................................................................................... 81
   11.3       Cash Management ........................................................................................ 82
      11.3.1         Setup of Petty Cash/Revolving Funds (Cash Box) ............................................. 82
      11.3.2         Detailed Procedures on Disbursements .............................................................. 83
      11.3.3         Cash Position and Cash Flow Forecast .............................................................. 84
      11.3.4         Reserve Requirement.......................................................................................... 84
   11.4       Foreign Exchange .......................................................................................... 85
      11.4.1         Reporting Currency ............................................................................................. 85
      11.4.2         Translation of Foreign Currency Transactions .................................................... 85

CHAPTER 12. UTILIZATION OF FUNDS .................................................................... 86
 12.1 General Principles ......................................................................................... 86
 12.2 Commitment of Funds.................................................................................... 86
 12.3 Cash Advances.............................................................................................. 87
 12.4 Special Documentary and other Requirements for the Use of Funds ............. 89
 12.5 Subgrants ...................................................................................................... 90
      12.5.1         Authority and Approval Requirement on Selection of Sub-grantees ................... 90

CHAPTER 13. DISBURSEMENT PROCEDURES ....................................................... 92
  13.1 Modes of Payment ......................................................................................... 92
 13.2 Payment Requisition ...................................................................................... 93
 13.3 Detailed Procedure on Processing and Reporting of Payments ..................... 94

CHAPTER 14. ACCOUNTING SYSTEM ..................................................................... 97
                                                                                                     4
CAI-Asia Center Operations Manual
Revised June 2010
   14.1      Brief Description of the Center’s Accounting System ..................................... 97
   14.2      Chart of Accounts and Coding Categories ..................................................... 97
   14.3      Filing and Retention of Financial Records ...................................................... 98
      14.3.1        Permanent Files .................................................................................................. 98
      14.3.2        Current Files ........................................................................................................ 98
      14.3.3        Documents Requested by Donors ...................................................................... 99

CHAPTER 15. BUDGET ............................................................................................ 100
  15.1 General Principles ....................................................................................... 100
  15.2 Annual Budget ............................................................................................. 100
  15.3 Operating Expenses Budget ........................................................................ 100
  15.4 Project Budget ............................................................................................. 101
 15.5 Costing Principles and Procedures .............................................................. 102
 15.6 Budget Revision ........................................................................................... 103

CHAPTER 16. FINANCIAL REPORTING .................................................................. 104
 16.1 General Principles ....................................................................................... 104
 16.2 Closing of Accounts ..................................................................................... 104
 16.3 Financial Monitoring Reports ....................................................................... 105
      16.3.1        Project Fund Status Report ............................................................................... 105
      16.3.2        Income Statement ............................................................................................. 106
      16.3.3        Balance Sheet ................................................................................................... 106
      16.3.4        Statement of Cash Flows .................................................................................. 107
      16.3.5        Specific Project Progress Report ...................................................................... 107
      16.3.6        Specific Project Completion Report ................................................................... 107

CHAPTER 17. AUDIT ................................................................................................ 108
  17.1 Annual Independent Financial Audit............................................................. 108
      17.1.1        Comprehensive Audit Scope ............................................................................. 108
      17.1.2        Timing and Completion of Audits ...................................................................... 108
      17.1.3        Audit Reports ..................................................................................................... 108
   17.2      External Auditor ........................................................................................... 109
      17.2.1        Criteria for Selection of External Auditor ........................................................... 109
   17.3      Special Audits Required for Specific Grants ................................................. 109
   17.4      Special Audits Required for Sub-grants ....................................................... 109
   17.5      Internal Audit................................................................................................ 109

                                                           ANNEXES

Annex 1.        Sample membership application form ..................................................... - 1 -
Annex 2.        Sample Travel Authorization and Travel Advance Form.......................... - 2 -
Annex 3.        Leave Form............................................................................................. - 3 -
Annex 4.        Sample Back-to-the-Office Report (BTOR) ............................................. - 4 -
Annex 5.        Sample Terms of Reference for Staff Recruitment .................................. - 5 -
Annex 6.        Criteria for Evaluation and Selection of CAI-Asia Center Staff................. - 7 -
Annex 7.        Sample Employment Contract................................................................. - 8 -
Annex 8.        Sample Staff Performance Review Form .............................................. - 12 -
Annex 9.        Sample Terms of Reference Form ........................................................ - 14 -
Annex 10.         Sample Request for Consultancy ...................................................... - 15 -
Annex 11.         Sample Expression of Interest Form for Individual Consultants ......... - 16 -
Annex 12.         Curriculum Vitae (CV) Format ........................................................... - 17 -
Annex 13.         Individual Consultants’ Ranking Form ............................................... - 19 -
                                                                                                                           5
CAI-Asia Center Operations Manual
Revised June 2010
Annex 14.      Sample Offer Letter Form.................................................................. - 20 -
Annex 15.      Sample Individual Consultants’ Contract ........................................... - 21 -
Annex 16.      Confirmation of Acceptance .............................................................. - 27 -
Annex 17.      Sample Notice to Proceed ................................................................. - 28 -
Annex 18.      Sample EOI form for Consulting Firms .............................................. - 29 -
Annex 19.       Consulting Firms’ Ranking Form ...................................................... - 32 -
Annex 20.      Sample Contract for Consulting Firms ............................................... - 33 -
Annex 21.      Performance Evaluation of Individual Consultants Sample Form ...... - 43 -
Annex 22.      Perrformance Evaluation of Consulting Firm Sample Form ............... - 44 -
Annex 23.      Sample Administrative Offenses and Corrective Actions/Penalties ... - 46 -
Annex 24.      Purchase Request (PR) .................................................................... - 50 -
Annex 25.      Purchase Order (PO) ........................................................................ - 51 -
Annex 26.      Official Receipt (OR) ......................................................................... - 52 -
Annex 27.      Certificate of Donation ....................................................................... - 53 -
Annex 28.      Request for Petty Cash (RPC) .......................................................... - 55 -
Annex 29.      Fund Liquidation (FL) ........................................................................ - 56 -
Annex 30.      Cash Advance Clearance.................................................................. - 57 -
Annex 31.      Cash Position Report ........................................................................ - 58 -
Annex 32.      Projected Cash Flow Report.............................................................. - 59 -
Annex 33.      Request for Cash Advance (RCA) ..................................................... - 60 -
Annex 34.      Cash Advance Liquidation (CAL) ...................................................... - 61 -
Annex 35.      Journal Voucher (JV) ........................................................................ - 62 -
Annex 36.      Request for Payment (RFP) .............................................................. - 64 -
Annex 37.      Check Voucher (CV) ......................................................................... - 65 -
Annex 38.      Chart of Accounts.............................................................................. - 67 -
Annex 39.      Project Budget Drafting Form ............................................................ - 91 -
Annex 40.      Project Budget Revision Form ........................................................... - 92 -
Annex 41.      Project Fund Status Report ............................................................... - 93 -
Annex 42.      Income Statement ............................................................................. - 94 -
Annex 43.      Balance Sheet ................................................................................... - 96 -
Annex 44.      Statement of Cash Flows .................................................................. - 97 -
Annex 45.      Method for Calculating Charge-Out Rates…………………………….. - 99 -




Chapter 1: Introduction and Purpose of the Manual

1.1 Objectives and Structure of the Manual

The CAI-Asia Center Operational Manual (OM) supplements the Articles of Association
and the By Laws and sets out the administrative and financial procedures that guide the
operations of the CAI-Asia Center and which help to ensure that these are in line with


                                                                                                                     6
CAI-Asia Center Operations Manual
Revised June 2010
international best practices for non-profit organizations. The Operations Manual has the
following goals:

       o   To provide the tool to guide the day to day operations of the CAI-Asia Center
           and ensure coherent coordination and effective control mechanisms for the
           various activities of the Center;
       o   To ensure a uniform level of understanding in the interpretation and
           application of the policies and guidelines; and
       o   To provide guidance to the CAI-Asia Center partners and funding agencies
           members on the policies and the implementation mechanisms of the CAI-
           Asia Center.

The Manual is divided into three Parts and 15 Chapters:

   Part 1 on CAI-Asia Center Institutions and Processes with 3 chapters:

       o       Chapter 2 on Institutions and Processes. The institutions refer to the CAI-
               Asia Center related bodies and processes refer to the core activities of
               the Center;
       o       Chapter 3 deals with the CAI-Asia Center’s planning and budgeting
               process;
       o       Chapter 4 describes the management structure of the CAI-Asia Center.

   Part 2 on Administration with 3 chapters:

       o       Chapter 5 pertains to the administrative policies and guidelines;
       o       Chapter 6 presents the CAI-Asia Center’s policies on human resources
               development
       o       Chapter 7 deals with procurement
       o       Chapter 8 presents project management details

   Part 3 on Financial Management and Audit that consists of 8 chapters:

           o   Chapter 9 presents the general principles that govern financial
               management, accounting and audit; describes the sources and
               recognition of revenues including the setting-up of the line of credit;
           o   Chapter 10 discusses the sources and recognition of revenues;
           o   Chapter 11 deals with asset management;
           o   Chapter 12 presents the general principles and guidelines on the
               utilization, commitment and cash advances;
           o   Chapter 13 describes disbursement procedures;
           o   Chapter 14 provides an overview of the accounting system;
           o   Chapter 15 deals with the budgeting and fund programming process;
           o   Chapter 16 discusses the financial reporting process; and
           o   Chapter 17 outlines the independent external audit of the financial
               administration and operations of the CAI-Asia Center.

Cross-cutting and related concerns are cross-referenced in the Manual that is available
online at http://www.caiasia.org.


                                                                                        7
CAI-Asia Center Operations Manual
Revised June 2010
1.2 Updating and Approval Process

The manual attempts to be comprehensive in its coverage and scope and detailed in its
presentation of the CAI-Asia Center By-Laws and operating policies. In the course of its
application however, revisions will be necessary. Updating shall be made:

   o   To provide the needed flexibility and adaptability to the changing environment;
   o   To enable the CAI-Asia Center to adopt new approaches and innovations to
       reinforce its mandate;
   o   To integrate emerging lessons learned from the implementation of CAI-Asia
       Center activities;
   o   To provide additional details on the policies and procedural guidelines as maybe
       deemed necessary in the course of the manual’s application;
   o   To respond to further institutional development and financial restructuring of the
       CAI-Asia, following its incorporation; and
   o   To make the Manual more responsive to the requirements of the CAI-Asia
       Center, Partners and funding organizations.

In general, any revisions that substantially alter the power of the CAI-Asia Center
Executive Director vis-à-vis the Board of Trustees will require approval of the Board.
Such may include, among others, changes on the personnel structure, approval limits on
financial transactions and approval of the annual budgets. Any changes that the
Executive Director may recommend in line with his duties and responsibilities will be
made without prior Board approval but will be reported to the Board in the following
quarterly report to Board.

Process of updating to be initiated by the Executive Director:

   1. Executive Director issues directive for the concerned Managers to revise/update
      the Manual;
   2. The concerned Manager submits the proposed changes for the approval of the
      Executive Director.
   3. Changes are reported to the Board in the following quarterly Board report and the
      Executive Director discloses these.

   The CAI-Asia Center Managers can also seek authorization from the Executive
   Director to revise pertinent sections in the Manual.

Updating process requiring prior authorization from the CAI-Asia Center Board of
Trustees:

   A. The CAI-Asia Center Board of Trustees initiates revisions.
      1. The Board of Trustees requests the Executive Director to revise the Manual
         and submit the revised for the approval of the Board;
      2. The Board approves the updated sections; and
      3. The Executive Director discloses these.

   B. The CAI-Asia Center recommends revision and updating.
      1. The Executive Director seeks authorization from the Board;
      2. The Board issues authorization;

                                                                                       8
CAI-Asia Center Operations Manual
Revised June 2010
       3. The Executive Director initiates the revision of the Manual, solicits comments
          from the Board and the staff and submits the revised Manual including the
          results of the review and consultations for the consideration and approval of
          the Board;
       4. The Board approves the revisions; and
       5. The Executive Director discloses the approved revisions.




                                                                                      9
CAI-Asia Center Operations Manual
Revised June 2010
PART 1: THE CAI-ASIA CENTER - INSTITUTIONS AND
PROCESSES



Chapter 2: Purpose, Institutions and Processes

2.1    Primary and Secondary Purpose
The CAI-Asia Center, Inc. Articles of Incorporation mandates the primary purpose for the
incorporation of the CAI-Asia Center to:

       “Improve urban air quality in Asia and in this regard, to initiate, implement and
       manage projects, conferences and symposia in the Philippines and in Asia or
       elsewhere, to promote public awareness and generate public support for the
       Corporation’s mandate, goals and activities.”

The secondary purposes of the Corporation include but are not limited to:
   a. Undertaking, promoting or facilitation knowledge management on air quality
      management;
   b. Undertaking, promoting or facilitating capacity building on urban air quality
      management and related topics;
   c. Facilitating the development of regional approaches to urban air quality
      management and harmonization of policies, standards and approaches;
   d. Promoting and facilitating the formulation, publication and implementation of air
      quality management strategies by national and local governments as well as
      other relevant stakeholders;
   e. Stimulating and facilitating the implementation of pilot programs which will
      address air quality-related projects encountered in the Asian region; and
   f. To provide secretariat support services to the international movement known as
      Clean Air Initiative for Asian Cities Partnership.

2.2    Mission and Goals

The strategic directions of the CAI-Asia in support of the above purposes are reflected in
its mission, goals and objectives:

       A.      Mission

       To promote the improvement of the air quality of Asian cities by sharing
       experiences, building partnerships and piloting innovative approaches.

       B.      Goals

       The goals to which the CAI-Asia Center will contribute are:


                                                                                       10
CAI-Asia Center Operations Manual
Revised June 2010
         i. Awareness among stakeholders on the need for and feasibility of
            strengthening of urban AQM in Asia has been improved;
        ii. Ambient air quality standards, emission standards and well-articulated AQM
            policies at national and local level for the prevention and control of mobile,
            stationary and area sources of air pollution have been formulated and are
            increasingly adopted and successfully implemented;
       iii. Well-established capacity to manage urban air quality in Asia has been
            developed among relevant stakeholders in Asia which includes trained
            manpower, monitoring equipment, and operational budgets for urban AQM;
            and
       iv. Financing models for urban AQM in Asia developed and mobilization of
            adequate financial resources has resulted in improved financial sustainability
            of urban AQM in Asia.

       C.       Outputs

       The CAI-Asia Center will strive towards the successful implementation of the
       following outputs:

        i. The CAI-Asia Center has been established and all administrative and
            financial procedures are functioning smoothly and sustainability is ensured;
        ii. The CAI-Asia Center is accepted as authoritative, knowledge base on urban
            air quality in Asia;
       iii. The CAI-Asia Center contributes to the generation of adequate capacity for
            effective urban AQM in Asia;
       iv. The CAI-Asia Center has expanded its role as convener of AQM-related
            policy forums; and
        v. The CAI-Asia Center has contributed to the identification of financing models
            for effective urban AQM in Asia and assisted in raising funds for the
            development and implementation of AQM programs and projects.




                                                                                           11
CAI-Asia Center Operations Manual
Revised June 2010
2.3      Regional scope
The CAI-Asia Center focuses on developing countries in Asia that span the main three
sub-regions of Asia: East Asia, South-East Asia, and South Asia. These countries are:

East Asia                        South-East Asia                South Asia
Peoples Republic of China,       Cambodia, Indonesia, Lao       Afghanistan,     Bangladesh,
Mongolia                         PDR, Malaysia, Philippines,    Bhutan, India, Nepal, Pakistan
                                 Thailand, Vietnam              and Sri Lanka

      The active participation and support of Japan, Republic of Korea, Hong Kong SAR,
      and Singapore in the activities of the CAI-Asia Center shall continue to be
      encouraged. However, as a general policy, these countries shall not be eligible as
      recipients of CAI-Asia Center funding.

      Participation by countries from the Pacific and Central Asia in activities of the CAI-
      Asia Center shall initially be on an ad hoc basis with the possibility of leading to a
      more permanent involvement for specific countries.


2.4      Thematic scope

      The emphasis will be on improving urban air quality and on improving management
      of contributing mobile, stationary and area sources of pollution.
      The CAI-Asia Center will actively promote the principle of co-benefits in which urban
      AQM is linked to climate change mitigation, or to improving road safety, achieving
      energy security, urban renewal or other fields of activities that can help to promote
      the adoption of better urban AQM. Efforts to reduce transboundary pollution will
      similarly be supported provided there is a linkage with urban AQM.
      It will also support efforts to reduce transboundary or regional air pollution for their
      relevance on urban air quality in Asia but will not take the lead on such
      transboundary or regional air pollution activities.
      The CAI-Asia Center will generally not endorse specific technologies or companies
      distributing specific technologies; neither will it engage in technology development.
      The CAI-Asia Center will not become involved in intergovernmental discussions on
      urban AQM in Asia unless requested by regional organizations with a formal
      mandate for intergovernmental discussions.

2.5      Target Groups
As a regional organization and to optimize its outreach and impact, the CAI-Asia Center,
Inc, will often work with intermediary groups to reach the final target group of decision-
makers and implementers of programs on urban air quality management. These
intermediary groups can include the following:
    local CAI-Asia networks in different Asian Countries;
    members of the CAI-Asia Partnership; or
    other regional and national organizations, programs and projects whose objectives
    are complimentary to the objectives and activities of the CAI-Asia Center, Inc.


                                                                                           12
CAI-Asia Center Operations Manual
Revised June 2010
2.6      Institutional Set-up
The CAI-Asia Center organization consists of
the Board of Trustees, the members,
Executive Director and the CAI-Asia Center                CAI-ASIA CENTER                        CAI-ASIA PARTNERSHIP
Staff. The organizational set-up is presented             Center Members                             Partnership Council
in Figure 1 which also shows the relationship            & Board of Trustees
of the CAI-Asia Center as a secretariat of the                                                           Members
                                                                                                             Cities
CAI-Asia Partnership and Country Networks.               Executive Director                           Government Agencies
                                                                                                 Non-governmental organizations
                                                      Deputy Executive Director                          Private sector
                                                                                                  Academic & research institutes
                                                                                           Development agencies, donors & foundations



2.7      Members                                                     Program
                                                                     Delivery
                                                                                                     Country Networks
                                                      Finance &                              China           India          Indonesia
                                                                     - Air quality
                                                    Administrative     management
The main criteria for membership is the                Services      - Sustainable urban
                                                                       mobility
                                                                                             Nepal                           Pakistan

potential value added that the member might                          - Supporting
                                                                       projects &
                                                                                           Philippines     Sri Lanka        Viet Nam
add to the activities of the CAI-Asia Center,                          activities


Inc. This can be in the form of joint activities
or in providing substantial inputs to the further   Figure 1. The CAI-Asia Center Organizational Set-Up
development of the Center.

2.7.1 Classification of Membership

Article IV, Section 1 of the CAI-Asia Center, Inc. By-Laws classifies membership
according to:

I.     Voting Members are: (i) the incorporators and initial members until withdrawal or
      termination of their membership in the Corporation; (ii) natural persons who have
      applied for and are qualified for membership in the CAI-Asia Center, Inc.; and (iii)
      the duly designated nominees or representatives of stakeholders and qualified
      organizations (refer to Items a and b below) who have applied for and are qualified
      for membership in the CAI-Asia Center, Inc. pursuant to the provisions of the CAI-
      Asia Center, Inc. By-Laws.

      a) Stakeholder representatives – The overall membership needs to be able to
         reflect the interests of the combined stakeholders in promoting better air quality
         management (AQM) in Asia. This can best be accomplished by a system in
         which different categories of stakeholders in the CAI-Asia Partnership select a
         representative who will be a member of the Corporation. For this purpose, the
         following stakeholder categories are adopted:

             i.   Cities and other forms of local government;
            ii.   National government agencies;
           iii.   Civil Society and academe;
           iv.    Business sector; and
            v.    Development Agencies




                                                                                                                       13
CAI-Asia Center Operations Manual
Revised June 2010
       Each category of stakeholders will be entitled to nominate one (1) representative,
       and alternate in accordance with the selection procedures developed by the CAI-
       Asia Partnership. Such representative/alternate shall be subject to the qualification
       rules for membership of the Corporation. Upon admission to membership, such
       representative/alternate shall become a Voting Member of the Corporation.

      b) Qualified Organizations – Organizations providing to the Corporation at least
         US$100,000 during any twelve (12) month period may apply to become, and if
         approved by the Board, will be a Voting Member of the Corporation (hereafter,
         “qualified organizations”).

Subject to the terms and conditions prescribed in the CAI-Asia Center Articles of
Incorporation and By-Laws, only those Voting Members whose status has been
classified as members in the By-Laws shall be qualified to vote, be voted for and to hold
office as trustee or Officer of the Corporation, provided they are members in good
standing, except for the Executive Director who may or may not be a Voting Member.

A juridical entity accepted as a member of the Corporation may designate, by resolution
of its board of directors or equivalent governing body, from time to time, one (1) nominee
or representative and alternate who shall exercise its rights as a member of the
Corporation.

Subject to the provisions of these By-Laws, the Board may, from time to time, and by
appropriate resolution, adopt such rules governing the rights and obligations of
membership in the Corporation.

II.      Non-Voting Members include: Non-voting members shall consist of: (i) funding
         organizations providing US$15,000 to US$150,000 during any twelve (12)-month
         period to the Corporation; and (ii) honorary and ex-officio members.

      a. Funding Organizations – In accordance with Article IV, Section 1.2 of the CAI-
         Asia Center By-Laws, organizations providing US$15,000 to US$150,000 to the
         Corporation during any twelve (12)-month period will be qualified to apply as non-
         voting members of the Corporation.           Organizations providing less than
         US$15,000 are not qualified to apply as non-voting members, however, their
         contribution, if accepted, will be duly recorded in the books of the Corporation
         and will be acknowledged and posted on the website and other publications of
         the Corporation.

      b. Honorary and Ex-officio members – From time to time the Board may award an
         honorary membership to an individual who has made an extraordinary
         contribution to the Corporation or air quality management in Asia. Honorary
         membership will be for life. Honorary members are entitled to attend and
         participate in activities of the Corporation but they shall not be entitled to vote,
         nor to hold office.

         The Board may induct ex-officio members selected on the basis of their affiliation
         with an organization that is of direct relevance to the Corporation. Ex-officio
         members are entitled to attend and participate in activities of the Corporation, but


                                                                                          14
CAI-Asia Center Operations Manual
Revised June 2010
       they shall not be entitled to vote, nor to hold office. The membership of ex-officio
       members shall be reviewed by the Board on an annual basis.

   c. Membership status of existing non-voting members shall automatically be
      renewed for another 12-month period effective upon receipt of qualifying
      membership contributions.




                                                                                        15
CAI-Asia Center Operations Manual
Revised June 2010
2.7.2 Application Process

Individual admission to membership in the CAI-Asia Center shall follow the process
below as prescribed under Article IV, Section 3 of the CAI-Asia Center Inc. By-Laws, as
follows:

      1. The application form (See Annex 1) for individual membership shall be
         accomplished and be submitted to the Corporation through its Executive Director;
      2. The application for membership is presented to the Board by the Executive
         Director at its next meeting, and must be approved by at least a majority of all
         members of the Board;
      3. Upon approval of the application for membership by the Board, the Executive
         Director shall issue written confirmation to the applicant.
      4. In case the application for membership is rejected by the Board, the Executive
         Director shall by written notice inform the applicant and provide the reasons for
         rejection.

The application process for juridical entities shall follow the procedures outlined above
except:
i)   The application for a juridical entity shall give sufficient information to properly
     identify the applicant and be signed by the nominee/ representative, and
     accompanied by a resolution of the applicant’s board of directors or equivalent
     governing body, constituting and appointing the nominee/ representative of the
     juridical entity.; and
ii)  The juridical entity may substitute the nominee/representative, by providing the
     Secretary with evidence of a resolution of the Board of Directors or equivalent
     governing body of the entity authorizing such substitution.


2.7.3 Annual Meeting of Members

Article V Section 2 of the CAI-Asia Center, Inc. By-Laws mandates the annual meeting
of the members of the Corporation every third Monday of June.

2.8      Board of Trustees
The Board of Trustees is established pursuant to Article VI of CAI-Asia Center, Inc., By-
Laws, to exercise corporate powers, manage operations, control the property of the CAI-
Asia Center, and to serve as its regular members. It is composed of nine members
elected from among the members of the CAI-Asia Center that have shown to possess
the following qualifications pursuant to Article VI, Section 3 of the CAI-Asia Center, Inc.
By-Laws:

      Strong affinity with urban AQM and personal knowledge of or experience in the
      development and implementation of urban AQM policies and programs;
      Well-developed appreciation of the need of a multi-sectoral approach to urban AQM
      and having present or prior association with one of the following groups of
      stakeholders: national or local government, civil society, private sector, media, or
      development organizations;

                                                                                        16
CAI-Asia Center Operations Manual
Revised June 2010
   Good understanding of the challenges of managing a newly-independent
   organization including associated financial processes; and
   Strong networks in the area of urban AQM, environment, and development
   cooperation.

2.8.1 Functions and Powers of the Board of Trustees

Without prejudice to the general powers mentioned, the Board shall have the following
express powers pursuant to Article VI, Section 6 of the CAI-Asia Center By-Laws:
   a. to adopt the rules and regulations for the admission of members including the
       grounds for suspension and disciplinary actions and payment of assessments,
       penalties, the government of members and management of the affairs of the CAI-
       Asia Center, its project and facilities;
   b. to approve the CAI-Asia Center, Inc. Operations Manual including the Rules of
       the Board;
   c. to approve the business plan and annual budget of the Corporation;
   d. to review on a no-objection basis, project agreements with a value of more than
       US $ 50,000 and less than US $500,000;
   e. to approve quarterly and annual reports on the finances of the Corporation;
   f. to approve the quarterly and annual reports on the operations of the Corporation;
   g. to approve selection of an asset managing firm or commercial bank to manage
       the funds of the Corporation;
   h. to open a credit line with a commercial bank to meet possible shortfalls in cash
       provided that such credit lines are covered by future income under approved and
       signed agreements;
   i. select, recruit and appoint the Executive Director, and terminate the contract of
       the Executive Director as appropriate and
   j. from time to time, to delegate, as may be permitted by law and the CAI-Asia
       Center, Inc. By-Laws, any of the powers of the Board of Trustees to any
       committee, officer or agent.

2.8.2 Composition

The Board of Trustees is composed of seven members elected during the first annual
members’ meeting after incorporation of CAI-Asia Center. Additional members are
elected in subsequent annual members’ meeting as necessary in accordance with
Section 2, Article VI of the CAI-Asia Center, Inc. By-Laws.

2.8.3 Election and Term of Office

   Members of the Board of Trustees are elected during the first annual members’
   meeting after and annually thereafter.
   Each trustee of the CAI-Asia Center, Inc. shall serve for a term of 3 years and may
   be re-elected for a maximum of two consecutive terms or a maximum of 9 years.
   Trustees shall serve for staggered terms, such that the term of office of 2 or 3
   trustees shall expire every year. Subsequent elections shall be conducted for 2 or 3
   new members of the Board of Trustees with a term of 3 years. The trustees will
   decide in mutual consultation whose term will expire after two years and in case of
   failure to reach an agreement, the Chairman/President shall make the decision on
   whose term will expire when.
                                                                                    17
CAI-Asia Center Operations Manual
Revised June 2010
   Vacancies arising from resignation, death or any other cause, except removal or
   expiration of term of a trustee shall be filled by the vote of at least a majority of the
   remaining trustees, if still constituting a quorum. The said vacancy or vacancies can
   be filled by election from among the Voting Members in good standing and the
   Voting Members so elected shall act as trustee/s of the Board for the unexpired term
   of the said vacant seat/s. Furthermore, Article VI, Section 4 further mandates that
   the election of this trustee shall be considered as one full term, for purposes of
   determining his eligibility for re-election. If the remaining trustees no longer constitute
   a quorum, such vacancy must be filled by the members in a regular or special
   meeting called for that purpose. A trustee elected to fill a vacancy shall serve only for
   the unexpired term of the trustee being replaced. The service by the new trustee for
   the unexpired term counts as one term. A written notice to all members shall be
   made by the Board, and served within one (1) week from the designation of the new
   trustee.

2.8.4 Meetings

   The Board of Trustees shall have a regular meeting on a semi-annual basis or at
   such other time and place in or outside the Philippines as the Board may determine.
   Special meetings shall be held at the written request of any 4 trustees at a time and
   shall be held at the principal office of the Corporation or at such time and place in or
   outside the Philippines, or by tele-or video-conferencing, provided that notice of such
   special meeting shall be given to the members of the Board at least 10 days before
   such meeting.

2.8.5 Board of Trustees Committees

The Board may create committee/s as may be deemed desirable and necessary in the
implementation of the purposes, programs and projects of the CAI-Asia Center, Inc. and
such committees shall exercise such powers and perform such functions and duties as
may be prescribed by the Board. Permanent standing committees will be established on
Remuneration and on Audit.

   A. Remuneration Committee – established pursuant to Section 2 of Article VIII
      Powers and Duties: (i) to determine the salary bands and benefits of Officers and
       employees of the CAI-Asia Center, Inc., and review these from time to time; ii)
       review the Executive Director’s proposals for modifying the salary bands and
       benefits and make recommendations to the Board; and iii) review the
       performance of the Executive Director and make recommendations to the
       Board.

       Membership: minimum of 2 members to be selected by the Board of Trustees.
        The Executive Director of the CAI-Asia Center, Inc. shall also sit as member of
        the Committee. Membership is not limited to the Board of Trustees but to
        include other qualified members of the CAI-Asia Center, Inc.
       Duration of Office: Committee members shall enjoy a term of two years.

   B. Audit Committee –established pursuant to Section 3 of Article VIII



                                                                                           18
CAI-Asia Center Operations Manual
Revised June 2010
       Powers and Duties: Review the (i) quarterly and annual financial reports; (ii)
        results of the external audit of the Corporation; and (iii) report and propose any
        recommendations to the Board regarding the financial arrangements and
        activities of the CAI-Asia Center, Inc.
       Membership: Minimum of 2 members to be selected by the Board of Trustees.
       Duration of Office: Committee members shall enjoy a term of two years.

Members of the Committees are entitled to the reimbursement of pre-approved
expenses incurred in connection with performing duties of the Committee, pursuant to
Section 12 of Article VIII. These shall be subject to the procedures for reimbursement of
expenses outlined in Part III of the Operations Manual.

Other committees to be created by the Board of Trustees shall be documented in the
CAI-Asia Center, Inc. Operations Manual.

2.9    Executive Officers
In accordance with Section 1, Article VII of the CAI-Asia Center, Inc, By-Laws, Executive
Officers include the: Chairman/ President, Vice-Chairman, Executive Director, Treasurer
and Secretary, all of whom shall be elected or appointed by the Board of Trustees. The
executive officers may be removed with or without cause at any meeting by the
concurrence of the vote of five (5) trustees. The Board may appoint such other officers
and delineate their powers and duties as the Board shall find necessary to manage the
affairs of the Corporation. The Board may appoint such other officers and delineate their
powers and duties as the Board shall find necessary to manage the affairs of the
Corporation.




                                                                                       19
CAI-Asia Center Operations Manual
Revised June 2010
2.9.1 The Chairman/President

The Chairman/President, in accordance with Section 2, Article VII of the CAI-Asia
Center, Inc. By-Laws, shall:

a. preside at all meetings of the members and at all meetings of the Board at which he
   shall be present;
b. unless otherwise determined by the Board of Trustees and subject to such limitations
   or guidelines which the Board may issue from time to time, have full power and
   authority to vote, on behalf of the Corporation, in person or by proxy at any meeting
   of any institution in which the CAI-Asia Center is represented;
c. represent the CAI-Asia Center, Inc. in activities and meetings of the CAI-Asia
   Partnership and related projects and programs;
d. in consultation with the Executive Director, inform the Board of Trustees and the
   members of the Corporation on all matters of interest to them and have all such other
   powers and duties as the Board of Trustees may prescribe from time to time; and
e. co-sign, either in person, or through delegation, in case he is not a resident of the
   Philippines, another Trustee who is a resident of the Philippines all checks, drafts,
   notes and orders for the payment of money against the funds of the Corporation in
   amounts above $150,000;and,
f. have the decisive vote in cases where the votes in a meeting of the Board of Trustee
   are tied.

2.9.2 The Vice Chairman

The Vice Chairman shall preside the meetings of the Board in the absence of the
Chairman or when authorized by the Chairman. He may represent the
Corporation in activities and meetings of the CAI-Asia Partnership and related
projects and programs. He shall inform the Board and the members of the
Corporation on all matters of interest to them and shall have all such other
powers and duties the Board may prescribe from time to time.

2.9.3 Executive Director

Pursuant to Section 3, Article VII, the Executive Director, who may or may not be a
member, shall have the general care and supervision of the business and affairs of the
Corporation. He shall have other powers incident to the office of the Executive Director
and such other duties and powers as the Board may fix by resolution. Specifically, the
Executive Director, shall:

a. represent the CAI-Asia Center in and execute all contracts and agreements entered
   into for and in behalf of the Center, by authority of the Board of Trustees expressed
   in a general or special resolution or other written instruments, and with the counter-
   signature of the Chairman, issue a Certificate of Donation in such form as the Bureau
   of Internal Revenue may prescribe on any donation received by, for or in behalf of
   the CAI-Asia Center, Inc.;
b. jointly with the treasurer, shall be responsible for the opening and handling of the
   Bank accounts of the CAI-Asia Center, Inc.;


                                                                                      20
CAI-Asia Center Operations Manual
Revised June 2010
c. sign all checks, drafts, notes and orders for the payment of money against the funds
   of the CAI-Asia Center in amounts up to US$ 50,000, co-sign with the Treasurer of
   the Board of Trustees in amounts above $ 50,000 to $ 150,000, and co-sign with the
   Treasurer and the Chairman/President and Treasurer or another trustee to be
   assigned by the Board, all checks, drafts, notes and orders for the payment of money
   against the funds of the CAI-Asia Center, Inc. in amounts above $ 150,000.
   however, the Board may authorize other Officers of the Corporation to perform these
   duties, from time to time;
d. appoint and remove as deemed necessary, any employee and agent of the CAI-Asia
   Center, to determine, fix and change their compensations, subject to the salary
   bands and benefits determined by the Remuneration Committee.
e. with the approval of the Board, purchase, lease or otherwise acquire for the CAI-Asia
   Center, rights, privileges of properties, to solicit grants for the projects of the CAI-
   Asia Center and manage, conserve and invest the funds of the Center in line with the
   instructions and guidance provided by the Board and in compliance with the
   Operations Manual procedures;
f. name and appoint all the agents and employees of the CAI-Asia Center subject to
   the approval and/or revocation by the Board, provided however that he may dismiss
   or accept the resignation of any employee even without prior action of the Board;
g. have the general and active management of the affairs of the CAI-Asia Center, Inc.
   but he may delegate in whole or part this function in writing to the Deputy Executive
   Director other officers or members and notify such to the Board in the following
   quarterly report;
h. have the power to engage technical consultants and advisors as needed to perform
   the functions of the CAI-Asia Center, Inc.;
i. Implement and ensure that the policies and decisions of the Board of Trustees and
   those adopted in the meetings of the members of the CAI-Asia Center are properly
   executed and complied with;
j. be responsible for the procurement and disbursement of funds for all projects and
   activities funded by the Corporation in compliance with the Operations Manual
   procedures;
k. submit to the Board all project proposals with a value of: (i) more than US$50,000.00
   and less than US$500,000.00, on a no-objection basis, and (ii) equal to or more than
   US$500,000.00, for Board approval, Provided: he shall review and approve all
   project proposals with a value of up to US$50,000.00; and
l. be responsible for the performance and financial monitoring of all projects and
   activities funded by the Corporation. He shall submit to the Board quarterly financial
   reports within fifteen (15) days from the close of each quarter, six-monthly
   operational reports within thirty (30) days of the close of each six month-period and,
   within sixty (60) days from the close of each fiscal year a complete report of the
   operations of the Corporation for the preceding year.

The Executive Director shall be appointed by the Board of Trustees, following
recommendations by a search committee chaired by the President/Chairperson of the
Board.

2.9.4 Secretary




                                                                                        21
CAI-Asia Center Operations Manual
Revised June 2010
In accordance with Section 4, Article VII of the CAI-Asia Center, Inc. By-Laws, the
Secretary who must be a citizen and resident of the Philippines, shall take and keep true
minutes of all meetings, give notice of all meetings to members and Trustees, have
custody of the corporate seal, notify the Trustees of their election, and in general,
perform all duties incident to the office of Secretary and such other duties as may be
assigned to him by the Executive Director, or the Board. Specifically, he shall

   Keep an accurate record of the resolutions and proceedings of each meeting of the
   Board, together with a record of the names of persons present, and provide copies of
   such resolutions and proceedings to members of the Board no later than 10 calendar
   days following the meeting;
   Ensure the distribution to the Board of quarterly, six monthly and annual reports
   prepared by the Executive Director; and
   Oversee the recording of any correspondence to and from the Corporation, and
   ensure that the Board is kept informed of such correspondence as instructed by the
   Board.

2.9.5   Treasurer

The Treasurer, pursuant to Section 5, Article VI of the CAI-Asia Center, Inc. By-Laws,
shall have custody of the funds and securities of the Corporation. He shall likewise
oversee the financial procedures in the Operations Manual. He shall co-sign with the
Executive Director all checks, drafts, notes and orders for the payment of money against
the funds of the Corporation in amounts in excess of US$50,000.00 and subject to the
provisions of the Operations Manual. Jointly with the Executive Director, he shall be
responsible for the opening and handling of the bank accounts of the Corporation.


2.10 Branch/ Subsidiary Offices
The CAI-Asia Center, Inc., with Board approval, may establish subsidiary or branch
offices in Asian countries to operationalize its expressed mission of promoting the
improvement of urban air quality of Asian Cities.

Such subsidiary or branch office would carry out:
Sharing knowledge and experiences on air quality management;
Promoting policy and regulatory frameworks improvement;
Promoting the implementation of integrated air quality management strategies and
regulations; and
Piloting projects to encourage innovation.




                                                                                      22
CAI-Asia Center Operations Manual
Revised June 2010
2.10.1 Branch Office

The CAI-Asia Branch office shall be an operating entity that is an integral part of the CAI-
Asia Center. Its functions include:
       Facilitate deeper understanding and broadened acceptance of need for urban air
       quality management;
       Catalyze the establishment of CAI-Asia local network in the host country/city; and
       Implement the CAI-Asia Center Business Plan.

2.10.2 Subsidiary Office

The CAI-Asia Center overseas subsidiary office is a legally-independent institution,
wholly-owned or majority-owned by CAI-Asia Center, to be incorporated in the host
country and shall serve to:
        promote urban AQM policies and standards; and
        contribute to the operationalization of the CAI-Asia Center, Inc. purpose, mission
        and goals and to establish the needed management capacity, including the
        development of pilot projects and financing models for these.

2.10.3 Guidelines and Procedures

       The decision to establish overseas branch and subsidiary offices rests with the
       Board of Trustees, acting on the recommendation of the Executive Director.
       The decision shall be based on the established need for physical presence of the
       CAI-Asia Center in the host countries/cities in advancing its purpose, mission and
       goals.
       A subsidiary/branch office can be established in any Asian Countries in
       partnership with a local network that shall be endorsed by the CAI-Asia
       Partnership.
       Upon approval by the CAI-Asia Center,
       Inc. Board of Trustees on the                       Figure 2. The CAI Network
       recommendation to establish branch
       offices, the Executive Director enters
       into a Memorandum of Agreement with                            CAI –
                                                                     Global
       the Local CAI-Asia Network.

2.11 Linkage with other                regional
     Clean Air Initiatives

                                                         CAI-LAC     CAI-Asia   CAI-SSA




Cross-regional knowledge sharing concerning air quality management shall continue to
be advanced with the CAI-Asia Center’s partnership with other regional Clean Air
Initiatives:

   1. Clean Air Institute of Latin American Cities (CAI-LAC); and
   2. Clean Air Initiative for Sub-Saharan Africa (CAI-SSA)
                                                                                          23
CAI-Asia Center Operations Manual
Revised June 2010
   The linkage as depicted in Figure 2 exists structurally but without formal mechanism
   of coordination and control as well as lines of authority or responsibility. The CAI-
   Asia Partnership shall take effort to ensure that the CAI-LAC and the CAI-SSA are
   fully informed of its establishment and activities.

2.11.1 Seal and Logo

In accordance with Article XV, the CAI-Asia Center, Inc. shall have its own seal to be
used by the Board and Executive Officers and kept by the Secretary, and in addition the
Center shall approve and authorize the use of the its own logo. All documents that bear
the seal shall be regarded as official documents and shall be recorded and copies
properly filed with the Secretary.

2.11.2 Website

As the principal instrument for cross-regional knowledge sharing, the further
development, maintenance and periodic updating the Clean Air Initiative website will be
undertaken as a joint initiative among the 3 regional CAI organizations.
Coordination mechanism for continued collaboration on maintenance of the website will
be put in place to ensure smooth operation of the website.

2.11.3 Membership in the CAI-Asia Center

As indicated in Section 2.7.1 item II, the representatives of the Clean Air Initiative for
Latin American Cities and the Clean Air Initiative for Sub-Saharan Africa may be
inducted by the CAI-Asia Center Board of Trustees as ex-officio members of the CAI-
Asia Center.

2.11.4 Joint Activities

   Put in place an effective coordination mechanism with the Clean Air Institute in Latin
   America and the Secretariat of CAI-SSA, bi-annual coordination meetings will be
   held;
   From time to time, joint fundraising activities may be undertaken to support a limited
   number of joint programs and projects with the Clean Air Institute and the CAI-SSA
   Secretariat;
   The CAI-Asia Center Board of Trustees may opt to create a committee/working
   group composed of 3 representatives from regional CAIs as ex-officio members, to
   define the joint objectives and activities.
   The Executive Director will, from time to time, meet with his counterparts to discuss
   cooperation and joint activities.
   The CAI-Asia Center’s Partnership and Policy group will coordinate the activities of
   the committee/working group and maintain close interface with the regional CAIs.


2.12        Policies on Anti-corruption


                                                                                       24
CAI-Asia Center Operations Manual
Revised June 2010
The anti-corruption policy of the CAI-Asia Center requires that its staff, bidder, suppliers
consultants and contractors adhere to the highest standard of ethics during the selection
and execution of such contracts. In this regard, the CAI-Asia Center, Inc. shall:

reject a proposal for award if it determines that the consultant recommended for award
has, directly or through an agent, engaged in corrupt, fraudulent, collusive or coercive
practices in competing for the contract in question.
sanction a consultant, either indefinitely or for a stated period of time, to be awarded a
contract if it at any time determines that the consultant has, directly or through an agent,
engaged in corrupt, fraudulent, collusive or coercive practices in competing for, or in
executing a contract.
have the right to require that in contracts with the CAI-Asia Center, Inc., a provision be
included requiring consultants to permit the CAI-Asia Center, Inc. to inspect their
accounts and records and other documents relating to the submission of proposals and
contract performance and to have these audited by auditors appointed by the CAI-Asia
Center, Inc.
in case of conflict of interest, the CAI-Asia Center, Inc., shall take appropriate actions to
manage such conflicts of interest or may reject a proposal for award if it determines that
a conflict of interest has flawed the integrity of any selection process.
not allow its staff to accept gifts from supplier in relation to their performance or work. In
case a gift is offered, for example during holiday season, this should be turned over to
HR Department for raffle. In case the gift is perishable, this should be shared with co-
employees. Complimentary hotel accommodation and travel mileage incentives are
acceptable as long as these do not create discrimination of other suppliers not offering
the same incentives.
not encourage purchasers to solicit or accept money, loans, credits, discounts,
entertainment or gifts/favors that could influence purchasing decision from suppliers or
potential suppliers. A promotional material of little commercial value (such as calendar
or paper weights) which may bear the supplier’s advertising is acceptable.
before accepting offers of travel or lodging from a supplier or prospective supplier, obtain
approval from the Executive Director (Deputy Director). The reason for accepting such
travel or lodging should be justified as being sound for business reasons and should not
obligate the Center.



2.13 Policies on Endorsement
The CAI-Asia Center may endorse events which are expected to provide benefits in the
form of logo display in the events/program materials and discounted registration/
attendance fees. In return, the Center has to display a banner on the Center’s website
and send a number of mailings to its Listserv (CAI-Asia Center e-group) subject to the
following:
The event must be on air quality (AQ)-related topic, i.e. it must be directly relevant to
what the Center does. Climate change, SUT, energy management, are examples of
AQ-related topics, but it is also important that the AQ link is obvious and that the topic is
of interest to the Center’s audience, especially to the Listserv members (e.g the Center
would unlikely endorse an event on “climate change adaptation through disaster
reduction management.”)
The list of speakers and affiliations shall be reviewed before endorsing an event. For
example, an event on Sustainable Urban Transport (SUT) but from the program it
                                                                                          25
CAI-Asia Center Operations Manual
Revised June 2010
appears that the organizers had no clue about who is who in the SUT world. There are
many professional event organizers that pick “flavor of the day” topics but do not have
access to the right speakers or audience.
Preferably the event should be non-commercial in nature. If it is commercial then the
Center must have clarity on the registration fees and ensure that these are reasonable.
Preferably the event should have a regional focus, and if not the Center should consider
the endorsement conditions. For example, a request for endorsement of an event
specifically targeting audience in a particular country. Then, it is a nuisance for Listserv
members to receive many emails with announcements of this event over the next
months. An option would then be to include a banner on the Center’s website and
include it in the CAI-Asia Center’s air calendar, but not send out emails to the Listserv or
perhaps send just one email announcement.
If the Center would not want to endorse (for whatever reason) but if it would be useful to
build a relationship with the organizing organization, then we could include the event in
the CAI-Asia Center air calendar without them to do anything in return.




                                                                                         26
CAI-Asia Center Operations Manual
Revised June 2010
        Chapter 3: Planning and Budgeting Process


3.1     Business Plan: Rationale
The business plan is core planning and implementation instrument of the CAI-Asia
Center that gives strategic direction, focus and priority to the implementation of activities
and programming of funds in support of these activities. It consists of a set of prioritized
activities that are anchored on the CAI-Asia mission, goals and outputs.

3.1.1   Formulation

   The Executive Director shall lead the CAI-Asia Center Business Plan formulation;
   The Business Plan shall be formulated in consideration of the agreed list of activities
   in line with the CAI-Asia mission, goals, objectives and outputs.
   It indicates the priorities accorded to each activity, the sequencing, the details,
   activities and the resources necessary to implement these.
   These activities will be assigned to the sub-units of the CAI-Asia Center.
   Detailed planning for the formulation activities shall be undertaken in a participatory
   manner with broad based consultation.

3.1.2   Activities and Approval Process

   Management shall conduct an annual management meeting to formulate and/or
   update the Center’s Business Plan and related activities.
   General strategic directions shall be obtained from the Board of Trustees and these
   shall be considered in the formulation of the Business Plan.
   The resulting draft of the CAI-Asia Center Business Plan shall be deliberated upon
   and approved by the Board.

3.1.3   Review and Reporting

   The Business Plan shall have a mid-term review at the end of the first year of
   implementation and an end term review prior to the formulation of subsequent
   business plans.
   Each review shall identify successful previous activities to improve the sustainability
   of subsequent interventions, prevent duplication of activities and augment existing
   and proposed activities.



3.2     Budgeting/Fund Programming
The CAI-Asia budgeting process is discussed in Chapter 13.




                                                                                          27
CAI-Asia Center Operations Manual
Revised June 2010
3.3    Resource Mobilization
The CAI-Asia Center, Inc. shall be responsible for fund raising to support the
implementation of the CAI-Asia Center Business Plan.

It shall also undertake joint fundraising with the CAI-Asia Partnership to undertake
specific programs and projects which will support objectives outlined in the CAI-Asia
Partnership Strategy and the CAI-Asia Center Business Plan and to cover the expenses
of the CAI-Asia Center in its capacity as Executive Secretariat of the CAI-Asia
Partnership.




                                                                                  28
CAI-Asia Center Operations Manual
Revised June 2010
Chapter 4: The CAI-Asia Center Management Set-up

The management set-up of the CAI-Asia Center, shown in Figure 3 reflects its core
functions and activities that are clustered into the following groups/teams:

    i)     Finance and Administrative Services (FAS);
    ii)    Policy and Partnerships;
    iii)   Knowledge and Communications;
    iv)    Air Quality Management (AQM) Program;
    v)     Transport Program

                        Figure 3. The CAI-Asia Center Functional Organogram

.
                                                Board of Trustees

                    Public
                   Relations                    Executive Director

                   Funders
                                                  Deputy Executive
                                                      Director



    Administrative              Policy and         Knowledge         Air Quality   Transport
      Services                 Partnerships           and             Program      Program
                                                 Communications

                                CAI-Asia                               Project A    Project A
       Administration                               Generation
                               Partnership          Knowledge          Project B    Project B

       Logistics               Capacity                                Project C    Project C
                                                    Dissemination
                               Building
                                                     Knowledge         Project D    Project D
       Finance                 Local CAI-Asia                          Project E    Project E
                                 networks
                                                                       Project F    Project F




4.1        Support to CAI-Asia Partnership

                                                                                                29
CAI-Asia Center Operations Manual
Revised June 2010
The CAI-Asia Center as the Executive Secretariat of the CAI-Asia Partnership provides
the following support:

   The CAI-Asia Center shall develop and maintain a website for the CAI-Asia
   Partnership which will be used as the main communication and information channel
   of the CAI-Asia Partnership;
   The CAI-Asia shall facilitate the development of the four-year CAI-Asia Partnership
   Strategy in coordination with a committee appointed by the CAI-Asia Partnership
   Council;
   The CAI-Asia Center shall endeavor to involve as much as possible the members of
   the CAI-Asia Partnership in its activities, including the CAI-Asia Local Networks
   acknowledged by the CAI-Asia Partnership; and
   The CAI-Asia Center shall fund costs such as for meetings of the CAI-Asia
   Partnership.

4.2    Office of the Executive Director
The Executive Director is responsible for the overall management of the CAI-Asia
Center and its entire staff pursuant to the CAI-Asia Center, Inc. By-Laws. He serves as
the main liaison between the Board, the CAI-Asia Center Staff, and the CAI-Asia
Partnership Council including the CAI-Asia funding institutions. The detailed duties and
powers of the Executive Director are discussed in Section 2.9. In addition the Executive
Director directly manages the CAI-Asia Center’s public relations functions (see Section
4.12) and linkages with the funding institutions (see Section Error! Reference source
not found.).

The Executive Director and the Deputy Director shall be assisted by the group Managers
who shall lead each of the groups. Three Unit Heads shall be assigned to lead the three
units within the Service Delivery division that include Air Quality Management, Transport
and Stationary sources. Unit heads are co-equal with and have the same level as the
division managers in terms of hierarchy.

4.3    Deputy Executive Director
The Deputy Executive Director (Deputy ED) who is based at the CAI-Asia Center
head office in Manila shall assist the Executive Director with the development and
implementation of strategic directions for the CAI-Asia Center including the review and
monitoring of progress in meeting the objectives of the CAI-Asia Center. He/she shall
exercise the following functions:

a. The Deputy Executive Director shall represent the Corporation in and execute all
   contracts and agreements entered into for and in behalf of the Corporation with a
   value not exceeding $ 50,000 per contract. The Deputy Executive Director shall, with
   the counter-signature of the Chairman, issue a Certificate of Donation in such form
   as the Bureau of Internal Revenue may prescribe on every donation received by, for
   and in behalf of the Corporation;

b. Jointly with the Treasurer, the Deputy Executive Director shall be responsible for the
   handling of the bank accounts of the Corporation, but not the opening of new
   accounts;
                                                                                       30
CAI-Asia Center Operations Manual
Revised June 2010
c. The Deputy Executive Director shall, while subject to the provisions of the
   Operations Manual, sign all checks, drafts, notes and orders for the payment of
   money against the funds of the Corporation in amounts up to US$50,000.00, co-sign
   with the Treasurer all checks, drafts, notes and orders for the payment of money
   against the funds of the Corporation in amounts exceeding US$50,000 but not
   exceeding US$150,000;

d. The Deputy Executive Director shall supervise the activities of any employee and
   agent of the Corporation, but will not determine, fix and change their compensations,
   subject to the salary bands and benefits determined by the Remuneration
   Committee.

e. The Deputy Executive Director shall solicit grants for the projects of the Corporation
   and manage, conserve and invest the funds of the Corporation in line with the
   instructions and guidance provided by the Board and the Executive Director and in
   compliance with the Operations Manual procedures;

f.   The Deputy Executive Director shall have the power to engage technical consultants
     and advisors as needed to perform the functions of the Corporation, provided that
     this concerns the engagement of consultants and advisors agreed upon in the
     Business Plan and budget of the CAI-Asia Center, and/or the position is identified
     and funding is available under an approved funded project;

g. The Deputy Executive Director shall implement and ensure that the policies and
   decisions of the Board and those adopted in the meetings of the members of the
   Corporation, are properly executed and complied with;

h. The Deputy Executive Director shall be responsible for the procurement and
   disbursement of funds for all projects and activities funded by the Corporation with a
   limit of $ 50,000 for procurement of goods and services;

i.   The Deputy Executive Director shall be responsible for the performance and financial
     monitoring of all projects and activities funded by the Corporation and oversee the
     preparation of quarterly financial reports within fifteen (15) days from the close of
     each quarter, six-monthly operational reports within thirty (30) days of the close of
     each six month-period, and, within sixty (60) days from the close of each fiscal year a
     complete report of the operations of the Corporation for the preceding year.

The powers and responsibilities of the Deputy Executive Director pursuant to Board
Resolution dated July 24, 2007, as enumerated above are subject to review from time to
time.

The CAI-Asia Center operations are joint responsibilities of the ED and Deputy ED. It
shall be the responsibility of the Deputy ED to consult where required, the ED on all
matters pertaining to the Center’s operations.


4.4     Finance and Administrative Services

                                                                                         31
CAI-Asia Center Operations Manual
Revised June 2010
The Finance and Administrative Services (FAS) provides support to the rest of the CAI-
Asia Center on:
       Human resources administration;
       Financial management;
       External relations and communications;
       General administrative services including inventory, logistics, file management;
       and
       Perform any other related tasks as may be assigned by the Executive Director.

In addition, it also serves as the secretariat to the CAI-Asia Partnership and the CAI-Asia
Board of Trustees. A manager leads the FAS group with support of Administrative
Officer/s. The Finance Section of the FAS is outsourced to a third-party service provider
which shall be responsible for the day to day recording and monitoring of financial
transactions.

4.4.1 Functions

On human resources administration:
      Administers human resources policies;
      Undertakes recruitment and coordinate selection process;
      Coordinates the conduct of performance review and assessment and
      administer employee recognition programs and disciplinary actions;
      Plans, develops, and implements professional and personal development
      programs; and
      Perform any other related duties as may be assigned from time to time by the
      Executive Director and Deputy Director.

For functions related to financial management, see Parts 2 and 3.

On providing support to the CAI-Asia Partnership:
         Organizes Partnership meetings and events including logistical arrangements;
         Documentation of meetings; and
         Perform any other related duties as may be assigned from time to time by the
         Executive Director and Deputy Director

On general administrative services:
        Undertakes procurement services in line with the guidelines detailed in Section
        5.
        Implements the records management policies of the CAI-Asia Center
        discussed in Section 5.3.
        Oversees repair and maintenance of office equipment and office space.
        Maintains adequate inventory of office supplies (refer to Section 5.1.2)
        Perform any other related duties as may be assigned from time to time by the
        Executive Director and Deputy Director.




4.5    Policy and Partnerships

                                                                                        32
CAI-Asia Center Operations Manual
Revised June 2010
The Policy and Partnerships group is at the forefront of developing and maintaining
linkages with external organizations which can help in furthering the mission and
objectives of the CAI-Asia Center. The organizations for which linkages with the CAI-
Asia will be developed and strengthened include:

        CAI-Asia Partnership and its members;
        Local CAI-Asia networks;
        National government agencies in Asia with a mandate on air quality;
        Regional and national NGOs with an AQM related mandate;
        Current and prospective funding organizations for the CAI-Asia Center;
        Private sector organizations with an interest in AQM in Asia; and
        Media

The tasks of developing and strengthening linkages with the following organizations are
shared with the Executive Director:
       Multilateral organizations with a mandate on air quality; and
       Regional programs and initiatives on urban AQM

The group is also responsible for the development and implementation of the capacity-
building programs of the CAI-Asia Center. Related functions to be undertaken in close
coordination with the Service Delivery Division include:
        Development and delivery of AQM training;
        Strengthening the institutional infrastructure for AQM training; and
        Inventory of AQM training materials for dissemination.

Perform any other related duties as may be assigned from time to time by the Executive
Director and Deputy Director

The group will be managed by a Manager to be supported by permanent and project
staffs.

4.5.1   Functions

   Networking both with regional and multilateral organizations as well as with the CAI-
   Asia Local networks and other national and local stakeholders on AQM;
   Participates and/or coordinates the CAI-Asia Center participation in regular
   meetings and forums at the global, regional or national level for policy influencing
   and resource mobilization;
   Coordinates activities of the CAI-Asia Center as convener of AQM-related policy
   forums;
   Process membership application requests;
   Coordinates the conduct of activities to support the establishment and strengthening
   of multi-sectoral networks on AQM;
   Facilitates the development of the four-year CAI-Asia Partnership Strategy in
   coordination with a committee appointed by the CAI-Asia Partnership Council;
   Implements, in coordination with the Service Delivery and Knowledge Management
   divisions the Business Plan involving the participation of the local CAI-Asia networks;
   and
   Perform any other related duties as may be assigned from time to time by the
   Executive Director and Deputy Director.

                                                                                       33
CAI-Asia Center Operations Manual
Revised June 2010
4.6     Knowledge and Communications
The Knowledge and Communications group spearheads the generation and
dissemination of knowledge. The group maintains close linkage with the other groups
which undertake the development and implementation of specific knowledge generation
projects.

   The group will be headed by a Manager to be supported by permanent and project
   staffs.

4.6.1   Functions

   Develop, maintain and periodically update and improve the CAI-Asia Center and
   CAI-Asia Partnership Web site and the CAI-Asia Center Listserv.
   Act as an information clearinghouse of the CAI-Asia Center and CAI-Asia
   Partnership;
   Develop general outreach materials; and
   Perform any other related duties as may be assigned from time to time by the
   Executive Director and Deputy Director.

Functions that shall be shared with the Service Delivery Division include:
   Updating of benchmarking reports of urban air quality management, annual
   compendium of AQM programs and projects and AQM studies; and
   Routine collection of AQ data and information.


4.7     Air Quality Program and Transport Program
An important function of the CAI-Asia Center includes the development and
implementation of specific programs and projects in support of the CAI-Asia Business
Plans that will be mostly of a regional or a sub-regional nature. As a general policy, the
CAI-Asia Center shall not engage in projects which are focused on one specific city.
Projects to be undertaken by the program delivery groups will vary in number over time.

Each program group will be headed by a Manager to be supported by permanent and
project staffs.

4.7.1   Functions

The Service Delivery Division will facilitate the development and implementation of
regional programs and projects that:

        will lead to a better understanding of urban air quality, its trends and contributing
        sources;
        are aimed at piloting new concepts for the monitoring and management of
        mobile, stationary or area sources of pollution; and


                                                                                          34
CAI-Asia Center Operations Manual
Revised June 2010
       for national and local projects, will trigger policy development and/or resources
       mobilization for urban air quality management in Asia;

4.8    Joint Activities
The activities of the CAI-Asia Center cut across thematic and functional scope of the
divisions, hence interdivision work shall be facilitated through conduct of regular
interdivision planning, consultation sessions and joint implementation.


4.9    Management Principles
Flexibility: The CAI-Asia Center shall exercise flexibility in terms of personnel
assignments and shall give emphasis on results rather than procedures.

Transparency and Accountability: The CAI-Asia Center shall exercise transparent,
democratic mechanisms of engagement and decision-making; performance shall be
monitored and reviewed against set goals and targets.

Participatory: The CAI-Asia Center will not impose pre-designed ideas and goals but will
use dialogue and consultation to gain support of its endeavours.

Good governance: The CAI-Asia Center shall promote good governance practices in all
its activities, the professional growth and development of its staff and develop shared
responsibilities for process and implementation.

Hierarchical system of supervision: The structure of the CAI Asia Center follows a
hierarchical system of supervision, where:
    Management functions of the Center are consolidated at the level of the Executive
    Director;
    The Executive Director can delegate responsibilities to the Deputy Director. The
    Executive Director with support from the Deputy Director supervises the work of the
    Division Managers and Unit Heads;
    CAI-Asia Center operations are joint responsibilities of the Executive Director and
    Deputy ED. It shall be the responsibility of the Deputy ED to consult the Executive
    Director, where required, on matters pertaining to the Center’s operations;
    Division Managers and Unit Heads exercise similar duties and responsibilities and
    are co-equal in terms of hierarchy;
    Division Managers and Unit Heads are expected to exercise direct supervision of
    and will take responsibility for the work of the staff under his supervision through
    issuance of instructions and performance monitoring.

4.10 Levels of Management and Delegation
In accordance with above principles, the line of authority and task delegation within the
CAI Asia Center, Inc. emanates from the Executive Director, and downward to Deputy
Executive Director, Division Managers/Unit Heads and Staffs. Management shall refer to
the Executive Director and the Deputy Executive Director.


                                                                                      35
CAI-Asia Center Operations Manual
Revised June 2010
The Deputy Director shall be designated as the Officer-in-Charge (OIC) of the CAI-Asia
Center when the Executive Director is on official business or on leave. One of the
Division Managers/Unit Heads shall act the as OIC in case both the Executive Director
and the Deputy Director shall be on official business or on leave.

Functions of the Group Managers/Unit Heads:
   Plan and oversee the work of the Group/Unit;
   Supervise the work of the staff under his supervision and monitor performance;
   Contribute to the preparation of technical reports including those that necessitate
   action by the Executive Director;
   Sign correspondence related to the implementation of programs within their
   respective Groups;
   Exercise quality assurance work through the review of all incoming and outgoing
   documents and if necessary provide follow-up;
   Represent the Executive Director on meetings as may be delegated to him/her by
   the Executive Director or Deputy Director; and
   Perform any other related duties as may be assigned from time to time by the
   Executive Director and Deputy Director.

4.11 Policies on Signing Official Communications
Official external and internal communications must follow the signing policies that reflect
the CAI-Asia Center hierarchy of management.

The Executive Director shall sign the following:
      All policy-related matters, including fund raising and personnel recruitment;
      All official communication on commitments, financial or otherwise, as authorized
      by the Board of Trustees;
      Official reports, including forewords and introduction to CAI-Asia Center
      publications; and
      Correspondence to members of the CAI-Asia Partnership, Partnership Council,
      heads of government, heads of international development agencies, NGOs,
      Academe.

The Deputy Executive Director shall have the authority to sign official internal and
external communications when such authority is delegated by the Executive Director.
(See Section 4.3 on the responsibilities of the Deputy Executive Director).


4.12 External Relations

The external relations policy of the CAI-Asia Center covers disclosure and public
relations activities that shall be undertaken to:
        Enhance the awareness and understanding of the CAI-Asia Center mission,
        goals, activities, policies and results among its Partners, constituents and other
        stakeholders;
        Facilitate sharing and exchange of development knowledge and lessons learned
        on AQM;
        Ensure participatory process and two-way flow of information; and
        Ensure transparency and accountability in the operations of the CAI-Asia Center.
                                                                                        36
CAI-Asia Center Operations Manual
Revised June 2010
The CAI-Asia Center Executive director may constitute a Communications Team,
composed of the Deputy Executive Director and the Managers of the Knowledge
Management and the Policy and Partnership groups, to review documents prior to press
release or web-posting. FAS will provide logistics support to the Team.

4.12.1 Guidelines on Public Relations

   Prior authorization and clearance from the CAI-Asia Center Deputy Executive
   Director and subsequent approval of the Executive Director is required before staff
   members can issue statements to the media. They can also refer the matter to or
   consult with the CAI-Asia Center Communications Team.
   Staff members who make claims on behalf of the CAI-Asia Center without the full
   knowledge and permission of the Executive Director can be subject to disciplinary
   measures.
   The Executive Director must sign all Forewords and Introductions to official CAI-Asia
   Center publications.
   When approached by a representative from any form of media (publisher,
   broadcaster, journalist), a staff member will refer that person to the Executive
   Director or Division Manager.
   Division Managers will inform the Communications Team of events such as CAI-Asia
   Partnership activities including workshops, training courses, launching of major
   publications and all other newsworthy events for posting on the web or to issue press
   releases. Information on the time, place, purpose, persons involved and
   significance of the event can be submitted by email to the Communications Team.
   Documents containing statements of the CAI-Asia Center policy (other than those
   specifically quoted from official records, or which attempt to interpret established
   policy) must be submitted to the Communications Team for review for subsequent
   approval of the Executive Director.
   Information to be distributed in which reference is made to an opinion expressed by
   the Executive Director or a statement attributed to him must be approved by the
   Executive Director.


4.12.2 Guidelines on Disclosure

In line with Article XI – of the CAI-Asia Center, Inc. By-Laws, Public Information shall be
made available and accessible through the following:
     National stakeholders as well as representatives of international development
     assistance agencies will be invited by the CAI-Asia Center, Inc. at its annual meeting
     to inform them about the activities of the Corporation;
     An up-to-date official website will be maintained by the CAI-Asia Center, Inc. as a
     venue for disclosure of the activities of the Corporation. The website shall provide a
     detailed summary description of all projects and activities that have received funding
     from the Corporation including the audited financial reports; and
     A report on all projects and activities that have received financial support from the
     CAI-Asia Center, Inc shall be made available to the public via print and electronic
     media (radio and television).



                                                                                        37
CAI-Asia Center Operations Manual
Revised June 2010
The following documents shall be made publicly available at the CAI-Asia Center
website and CAI-Asia Center publications:

   Documents/technical assistance reports that fall within the scope of Knowledge
   Management
   Information on CAI-Asia Local Networks and CAI-Asia Partnership
   Business opportunities listing
   Workshop/conference Proceedings
   Events calendar

4.12.3 Guidelines on Media Coverage

   Media coverage of major CAI-Asia Center events will be coordinated by the FAS
   upon the request of the Division in charge of the event.
   Press releases will be prepared for meetings of major regional interest by the
   Division coordinating the conduct of the event
   The draft press release will be submitted to the Communications Team at least five
   days before the event is to take place, for editing and for subsequent approval of the
   Executive Director and if necessary, to allow for translation into the language of the
   host country.
   Presentation materials of the Executive Director will be drafted by the Division in
   charge of the event for final drafting by the Communications Team and approval of
   the Executive Director.


4.12.4 Website and Listserv:

   The CAI-Asia Center maintains the CAI-Asia Center website with URL:
   http:///www.cleanairasia.org, and listserv at URL: http://.
   Consistent with established practice for on-line information systems throughout the
   worldwide Internet, a level of open access will be available to all interested users
   without charge.
   Both the CAI-Asia Center homepage and the CAI-Asia Intranet will be maintained by
   the Knowledge Management Group.




                                                                                      38
CAI-Asia Center Operations Manual
Revised June 2010
                     PART 2: ADMINISTRATION
Chapter 5: Administrative Policies and Guidelines

5.1    Office Equipment, Facilities and Supplies
The CAI-Asia Center, Inc. shall, as far as possible, ensure that appropriate office
furniture and equipment and facilities are available for the staff of the Center. All fixed
assets purchased by the Center for operational purposes shall remain the property of the
CAI-Asia Center, Inc. An inventory of all property shall be kept by FAS and property
checks undertaken every 12 months.

5.1.1 Office Equipment

   FAS will ensure that the annual budget shall include sufficient allocation for the
   purchase and maintenance of additional standard office equipment including:
   furniture, desktop and notebook computers, accessories, photocopiers, air
   conditioners, telephones and filing cabinets.
   Management and maintenance of the office equipment shall be the responsibility of
   the FAS. Request for repairs shall similarly be coursed through, and organized by,
   the FAS.

5.1.2 Supplies

Each Divisions/Units shall maintain a limited amount of required consumable office
supplies that it will issue to each staff on an ‘as needed’ basis.

5.1.3 Email Services

   Email services are provided by the CAI-Asia Center in support of the operational and
   administrative functions of the Center.
   Permanent staff members of the CAI-Asia Center are automatically granted email ID
   and privileges while non-permanent staff (project staff and consultants) can request
   temporary use of the services subject to the approval of the Division Manager
   concerned.
   The Knowledge Management Division serves as the “E-mail Administrator” of the
   CAI-Asia Center which is responsible for setting-up, running and maintaining the
   electronic mail system. All requests for use of the email and IT services shall be
   forwarded to this Division.
   Email services may be used for personal messages subject to the following
   conditions:
           - email for personal use should not directly or indirectly interfere with the
               operations of the CAI-Asia Center;
           - it should not interfere with the user’s employment or other obligations to
               the CAI-Asia Center; and
           - it should not burden the Center with noticeable incremental cost.
                                                                                        39
CAI-Asia Center Operations Manual
Revised June 2010
5.1.4 CAI-Asia Center Intranet

    The CAI-Asia Center maintains an internal internet system for the use of its staff as a
    channel for broadcasting organization information, enabling easier access to
    information and internal databases by the CAI-Asia Staff members and to facilitate
    internal collaboration.
    It contains the following, among others: directory of staff, the CAI-Asia Operations
    Manual, policies and internal memoranda.
    The Intranet will be maintained by the Knowledge Management Division.

5.2     Transportation

5.2.1 Land Transport

    As a policy and in line with the advocacy of the CAI-Asia Center, it shall promote the
    use of public transport and will not encourage the purchase of private vehicles for the
    use of the Center.
    The CAI-Asia Center shall however authorize the reimbursement of the cost of travel
    and use of public transport that are within duty station and in connection with official
    business and entitlement travels that include meetings, briefings, consultations,
    conferences, training courses, field visits and program related missions. The Center
    shall not reimburse transport expenses in coming to and from the place of residence
    and the Center.
    Reimbursement receipts shall be submitted by the staff concerned to the FAS for
    processing of reimbursement.

5.2.2 Air Transport

    For domestic and overseas travel that requires the use of air transport, it shall be the
    policy of the CAI-Asia Center to ensure that the most economical route will be
    chosen that considers both the travel time and cost of ticket unless otherwise
    indicated in the Manual.
    The CAI-Asia Center shall fund the cost of transportation that will be charged to the
    relevant program or activity, based on the following procedures:
.
        i. Preparation and approval of the Travel Authorization (TA) (See Annex 2). TA
           shall be prepared at least one week in advance of travel by completing a TA, for
           clearance of the Division Manager and approval of the Deputy Executive
           Director;
       ii. In case a travel advance may be required, the approved TA will be submitted to
           the FAS for processing of the advance payment.
      iii. Preparation and submission of the back-to-the-office-report (BTOR, see Annex
           3) within 10 working days following the return to office.
      iv. Preparation of travel expense claim for reimbursement or to settle claims made
           against the travel advance, to be certified by the traveler and submitted to the
           FAS along with supporting documentations within 30 working days following
           return to office. Supporting documents include original receipts are required for


                                                                                         40
CAI-Asia Center Operations Manual
Revised June 2010
        all expenses that include accommodation, air fare, rental, etc. or a Certification
        of Payment, in case it is impossible to obtain receipts for certain expenses.
   Amendments on the TA – The TA shall be modified and approved when there are
   changes in the itinerary. A note to explain discrepancies shall be made on the travel
   claim.
   Donor Preference- In general the policies of the CAI-Asia Center, Inc. on travel shall
   be followed, except in cases where there is conflict with the policies of the donors, in
   which case the latter shall apply.

5.2.3 Standard flight service class

   Staffs of the CAI-Asia Center, Inc. shall travel in the economy class.
   In case the travel is paid for by another organization, a business class may be
   allowed.
   Upgrading to a higher class or travel by alternative routes may be authorized at the
   expense of the traveling staff.
   On frequent flyer and related programs, mileage points accumulated shall accrue to
   the traveler.

5.2.4 Per Diem and Related Travel Allowances

   The CAI-Asia Center shall pay per diem for foreign travel on official business in lieu
   of reimbursement for actual subsistence expenses involving more than 12 hours
   away from home. Per Diem rates shall have two components: Hotel and Other
   Subsistence Expenses (OSE). Per diem for hotel shall be based on actual room
   charges incurred based on supporting hotel receipts but subject to ceiling determined
   based on applicable rates published by the UN organization.
   The OSE portion of the per diem rates shall be based on the amounts established by
   the FAS at rates amounting to US$25, US$50, US$75 and US$100 depending on
   location.
   The FAS shall update the published per diem rates when necessary.
   The full rate of per diem will be paid on the day of departure, irrespective of time;
   however, no per diem will be given on the day of return unless actual return/arrival
   falls after 10:00 p.m. in which case additional OSE shall be given.

   The Center shall also pay per diem and other travel allowances to consultants on
   official business travel, which may be different from those paid to staff.
   In addition to providing transportation, the CAI-Asia Center will also provide a
   miscellaneous travel expense (MTE) equivalent to US $ 150, which will be updated
   by FAS when necessary. The MTE will cover incidental expenses incurred in
   connection with the official travel such as visa application, in-country transportation,
   airport terminal fees, porter charges, etc. and will not require submission of receipts.
   MTE for domestic travel shall be US$50.
   The CAI-Asia Center shall also bear the cost of basic travel accident and baggage
   insurance for staff.
   Any reimbursement in addition to the per diem and MTE shall be approved on a case
   to case basis by the Executive Director.
   Consultants and contractors on official travel shall be reimbursed on official travel-
   related expenses subject to the terms to be stipulated in the contract.


                                                                                        41
CAI-Asia Center Operations Manual
Revised June 2010
5.2.5 Security

The CAI-Asia Center shall take steps necessary to ensure the safety of its staff in the
event of security threat, civil disorder, and warfare. It shall alert the staff on any security
issues and shall maintain regular contact with the United Nations Security Office.

As part of Office Security, the Staff shall abide by the following:
   The Staff shall familiarize themselves with exit routes from the building and assembly
   points outside the building;
   Familiarize themselves with emergency telephone numbers and fire drill procedures
   on the safety posters that are displayed in the building;
   The staff is advised to take the necessary precautions with personal valuables and
   equipment at the CAI-Asia Center; and
   Any theft must be reported to the Security as soon as possible after discovery.

FAS shall coordinate the conduct of safety training as necessary. If required, the CAI-
Asia Center shall issue identification cards to its staff.

5.2.6 Seal and Logo Usage

The CAI-Asia name and logo are the properties of the CAI-Asia Partnership. Members
of the CAI-Asia Partnership may use the CAI-Asia Center logo without prior permission
from the CAI-Asia Center to show affiliation with the regional CAI entities. The right to
use the logo shall however be subject to the CAI-Asia Center logo usage policies:
    The CAI-Asia logo must stand alone and may not be altered in any way: It cannot be
    modified nor combined with any other design element such as photography, type,
    borders, nor can it be incorporated into another logo.
    The elements of the CAI-Asia logo must not be recreated, repositioned or redrawn.
    Official partners of the CAI-Asia, endorsed by the Partnership may use the logo for
    their own communications.
    The CAI-Asia Center does not permit the use of the logo by anyone outside the
    organization unless it is the sponsor of an event or program. The logo may then be
    used in conjunction with the event or program provided that the CAI-Asia Center
    does not object to this use.
    Questions regarding logo approval and permission to use the logo may be emailed to
    the CAI-Asia Center Finance and Administrative Division (FAS) at email address:
    fas@caiasia.org


5.3    Records Management
The records management is in place to ensure the systematic control of the creation,
maintenance, use, reproduction and ultimate disposal of records. As much as possible
actions promoting an electronic office are to be pursued.

The system applies to any information, regardless of physical form that may emanate
from, or received by the Center as part of its official activities, including those that are
issued internally within the Center and its Board.


                                                                                               42
CAI-Asia Center Operations Manual
Revised June 2010
   Records management shall also be implemented by the CAI-Asia Center Branches
   and Subsidiaries.
   The implementation of the CAI-Asia Center records management policies is the
   responsibility of all CAI-Asia Center Staff including CAI-Asia Center Branch and
   Subsidiary offices. The FAS is however the focal unit on records management which
   will:
   (i) serve as the receiving unit of all outgoing and incoming communication; and
   (ii) implement the prescribed retention period for different types of files, transfer files
        for external archiving and implement the records protection program.
   Records audit shall be periodically undertaken to ensure adherence to the CAI-Asia
   Center records management policies. Findings of the records audit shall be
   submitted for the information of the CAI-Asia Center Board of Trustee through the
   Executive Director.
   The filing system integral to the CAI-Asia Center, Inc. records management, a
   system that applies to both paper and electronic filing that are discussed in separate
   sections below (sections 5.3.5 and 5.3.6) and is generally defined by the types of
   records (i.e,. Master files and subject files) is to be maintained.

5.3.1 Frequency

   To avoid unnecessary accumulation of papers and to ensure that files are current at
   all times, filing should be done daily.
   Incoming correspondence should be filed according to the date indicated in the
   correspondence and not the date received, with the most recent date at the top of
   the file.
   File retirement that includes the practice of purging files through disposing of
   duplicate copies, drafts and any unnecessary documents should be done at least
   once per calendar year to prevent an unnecessary build-up of records in a limited
   office space.

5.3.2 Retention Period

   Retention Period refers to the maximum and minimum length of time that the records
   must be kept.
   The CAI-Asia Center will adopt several different retention period that will indicate
   which records can be kept until the scheduled retention period (minimum) but not
   longer (maximum) and are dependent on the usage factors and legal requirements
   such as audit.
   The retention period or on-site record keeping designations for each type of records
   are indicated in the table below. Otherwise only important documents are to be
   scanned and electronically filed:

      Type of                           Description                         Retention Period
      Records
Permanent            Permanent files shall be retained to perpetuity and shall be stored in a
Records              secured location within the Center’s office premises. Copy of these files
                     may be made and retained at a secured off-site location.
1. Annual reports                                                       7 years on site storage
2. Publication                                                          7 years on site storage

                                                                                                 43
CAI-Asia Center Operations Manual
Revised June 2010
3. Program           Documentary material related to policy,              5 years after
   /project Files    procedural or technical matters which may be         completion of the
                     viewed as having a permanent archival value          project
                     to the CAI-Asia Center. The Center is the main
                     repository for program files.
                     Project files include: (i) project concepts,
                     project proposals; (ii) plans and budget; (iii)
                     sub grant agreements; (iv) accomplishment
                     reports; (v) schedules; (vi) technical files such
                     as implementation plans, operations manual,
                     design specifications.
4. Staff Records     Records for both locally and internationally         Minimum of 7years
                     recruited staff are maintained at the CAI-Asia
                     Center
5. Contracts         Includes all contracts and corresponding             Full duration of the
                     documents    with suppliers, consultancy             contract and five years
                     companies, individual consultants, etc. must         following the
                     be maintained for the full duration of the           completion of the
                     contract                                             contract
6. Donor             Includes   all  donor   agreements           and     Full duration of the
   Agreements        corresponding documents                              agreement and 5
                                                                          years after completion
                                                                          of the project
7. Financial         See Section 13 on Filing and Retention of
   Records           Financial Records
Current Files        Current files are the records and documents that serve of little benefit in
                     the future by retaining to perpetuity. These shall be retained for a period
                     of 5 years.
8. Chronological     Refers to the CAI-Asia Master Files (See             Maximum of five years
   files             5.3.5, A)
9. Financial         See Section 13 on Filing and Retention of
   Records           Financial Records


5.3.3 Records Protection Program

The records management system integrates the records protection and dispersal
program that provides for digital imaging of vital records and off-site storage of these to
ensure that the CAI-Asia Center operations will not be disrupted during emergencies or
calamities. Also see additional guidelines in Section 5.3.5 on electronic filing.

External archiving shall apply to non-current files, semi-active files and rarely used files
which shall be retired outside the office of the CAI-Asia Center, Inc.

5.3.4 Confidentiality and Access

Confidential correspondence sent by the CAI-Asia Center shall be filed separately by the
Division or Office concerned in a locked cabinet, while incoming correspondence may be


                                                                                                   44
CAI-Asia Center Operations Manual
Revised June 2010
filed in a classified file, with an optional cross-reference to the subject file or declassified
and filed in the regular files.

In addition to physical safeguards on access to paper files, the Center’s filing system
shall also consider access restrictions to certain confidential files saved on the Center’s
computer server such as personnel files, payroll data, etc.

The FAS in coordination with KM head shall develop guidelines for recommended
access rights.

5.3.5 Electronic Filing

Records created in electronic form are subject to electronic filing. These may include,
but not limited to, financial transactions, databases and records created as part of
research activities. Electronic filing system is configured according to the type of records
and filing system discussed in 5.3.5.

The Knowledge Management division in coordination with FAS shall develop guidelines
for the design and structure of the CAI-Asia Center electronic filing system including the
creation of a system backup and procedure to protect data from accidental erasure,
disaster, or system malfunctions. These procedures shall form part of this OM. The filing
system of files both in paper and electronic copies that will be maintained by FAS shall
follow a revised structure with the following major categories:
     1. Staff
     2. Management
     3. Contracts
     4. Finance
     5. Operations Manual
     6. Correspondence

Electronic records systems that have continuing utility and value is to be actively
maintained by the Group that created it.

5.3.6 Paper Filing

Types of records and filing practices:
CAI-Asia Center Master Files. Daily chronological file shall be maintained by the CAI-
Asia Center that shall sort records according to the “date sent.”

CAI-Asia Center Division Files. Each division shall be responsible for filing the following
types of records related to the Division’s work:

   Division Master File
       All Divisions shall maintain chronological files of all incoming and outgoing
       correspondence.
       Each staff within the Division shall be responsible for ensuring that copies of
       correspondence received and sent are filed in the Division Master File.
       To eliminate the need for duplicate filing, (i.e. creating extra copy for the division
       master file) general, routine files or those that are cross-cutting and common to

                                                                                             45
CAI-Asia Center Operations Manual
Revised June 2010
       the members of the division shall be filed in the Division master file and those
       that pertain to a specific program/project shall be filed in the Division file.

   Division Subject File
       The respective divisions shall develop its own subject filing system that reflects
       the nature of the activities under that Division.
       If necessary, each division shall assign subheading and tertiary headings to
       categorize the files.

5.3.7 Email correspondence

   For email correspondence, the message trail which accompanies an email message
   should be retained and a system should be put in place that prevents, as much as
   possible, any alteration of the electronic message.
   Electronic copies of email correspondence that are regarded as official and that
   provides a record of actions taken by the CAI-Asia Center shall be filed following the
   type of records filing system (master/subject file/activity) to establish a proper paper
   trail system.
   When documentary records of Internal memoranda that are normally circulated
   through email will be required, these should be scanned and filed accordingly.
   The KM and Capacity-Building Division shall develop the system for email archiving.

5.4    Contract Management

The Center shall establish a Contract Management system that will be used to monitor
contractual requirements and ensure that committed outputs or deliverables are
submitted on designated due dates, contractual payments are made on time, among
others. This shall be managed by FAS in close coordination with the Service Delivery
Division.




                                                                                        46
CAI-Asia Center Operations Manual
Revised June 2010
Chapter 6: Human Resources Development


6.1     Guiding Principles
Employment and human resource development policies established in this Manual
generally reflect the desire of the CAI-Asia Center to be fair to the interests of its staff
and those to be hired by the Center.

Within its operational framework, the CAI-Asia Center shall make every effort to provide
continuance of employment as may be essential for the completion of its projects and
programs.

The personnel structure established for the CAI-Asia Center consists of the following: (i)
permanent staff; (ii) project staff; and (iii) consultants.

The CAI-Asia shall engage consultants for a specified period to provide specialized
expert knowledge and advice.


6.2     CAI-Asia Center Staff Selection and Recruitment
   The CAI-Asia Center shall ensure that appointment and promotion are based on
   merit rather than favoritism.
   Permanent staff positions are regular full time positions that are entitled to the CAI-
   Asia Center, Inc. benefits (see Section 6.4) including separation pay, while project
   staffs are full time positions with fixed terms. These positions shall similarly enjoy
   benefits and entitlements but shall not be eligible to receive severance pay.
   The initial appointment for both the permanent and project staffs is for a probationary
   period of up to 6 months which the Executive Director may however waive or
   shorten. In the case of 6 months or less probationary period, if staff performance is
   evaluated as satisfactory, the appointment may be converted to a permanent
   contract, in the case of permanent staff and extended or renewed, in the case of
   project staffs.
   If an advisor is engaged as a consultant, the same procedure will be followed as in
   the case of engagement of consultants.

6.2.1   Types of Appointment

   Permanent staff position – is a regular full time positions with a regular appointment
   for a fixed term that is subject to a probationary period of up to 6 months and entitled
   to receive severance pay; and
   Project staff position- is a full time appointment to the staff of the CAI-Asia Center for
   a specified period of time and is subject to a probationary period of up to 6 months.

These appointments are to be governed by a Service Contract that shall specify the
starting and finishing dates of the employment (or in lieu of a finishing date, will specify
the circumstance/s or contingency relating to a specific task or project, upon which
                                                                                         47
CAI-Asia Center Operations Manual
Revised June 2010
occurrence of which the term of employment shall expire). The monthly payments are
normally based on work-time rather than output and release of payment is based on the
attendance record.

6.2.2   Recruitment and Selection Process

The recruitment and selection process applies to the types of appointment discussed
above and follows the guidelines below:
1. User Division prepares the TOR (See sample TOR in Annex 5) and request for filling
    up the vacancy position to be approved by the Executive Director.
2. Upon approval, FAS advertises vacancies through the CAI-Asia Center website
    Business Opportunities listing, bulletin boards and/or local and international
    newspapers. The vacancy announcement shall indicate the requirement for the
    submission of a letter of application and CV.
3. Candidates suitable for employment will be identified by the FAS through
    advertisements and applications received.
4. A pre-selection of the candidates is made by the user division (See Annex 6) for a list
    of possible criteria for evaluation and selection staff).
5. Conduct of interview via teleconference or face to face meeting for pre-selected
    candidates to be coordinated by FAS and the user Group.
6. The user group submits its recommendations to the Executive Director.
7. The Executive Director or the Deputy Executive Director or the Group Head will
    interview the recommended candidate and approve or disapprove hiring of the
    applicant. (In case of non-approval, FAS will invite the second-ranked candidate for
    interview).
8. For the Group Manager/Unit Head position, FAS convenes a selection panel to
    review the applications. The selection panel shall consist of the Executive Director,
    Deputy Executive Director and one of the Group Managers or Unit Heads.
9. The selection panel forwards the recommendation to the Executive Director for final
    decision.
10. The Executive Director approves the hiring.
11. FAS prepares the Employment Contract (See Annex 7) that contains the following:

                    i.   Place of assignment
                   ii.   Duration of the contract
                  iii.   Amount of remuneration, terms of payment and other benefits
                  iv.    Leave provisions, holidays and hours of work

12. The Service Contract is signed by the Executive Director, The Division Manager of
    the FAS and the applicant and returns the original signed copy to the FAS.

Additional guidelines:
   The Executive Director may decide to modify the above search procedures in
   situations where qualified individuals are already known to the CAI-Asia Center,
   either through previous or current service who meets the Center’s standards for
   appointment.
   In cases where only 1 candidate applies for a staff position, the User Division shall
   request for waiver (with justification) of the 3 shortlist of candidate for the
   recommendatory approval of the Deputy ED and approval of the ED.


                                                                                       48
CAI-Asia Center Operations Manual
Revised June 2010
   In the absence of fully qualified individuals for the position, the search and selection
   process shall continue until a qualified individual is identified.
   The basic criteria for the appointment shall be appropriate qualifications and
   performance. Relationship by family or marriage shall constitute neither an
   advantage nor a disadvantage. For the purpose of this policy, relatives are defined
   as husbands and wives, parents and children, brothers, sisters, and any in-laws of
   any of the foregoing.

6.2.3   Staff Performance Evaluation

Performance evaluation will be implemented by the CAI-Asia Center to:
       promote more effective job performance
       maximize staff potential and facilitate professional growth; and
       facilitate institutional improvement.

General Guidelines:
      Performance evaluation shall be carried out annually for the period January
      through December.
      The annual performance evaluation cycle must be completed by January 31.
      Individual staff Performance Targets shall be setup at the beginning of the year
      and an assessment against those Performance Targets shall be made covering
      the evaluation period.
      The staff performance evaluation process shall include a Midterm review to be
      conducted in June or July of the current year. The review shall be informal
      unless the staff member concerned is considered for a pay increase or promotion
      in which case a more comprehensive evaluation is required.
      Self assessment of performance shall be adopted.
      Group managers/unit heads shall evaluate the performance of both permanent
      and project staff for the entire rating period.
      Staffs that are under probation shall undertake self-assessment at the end of the
      probationary period. The results of which shall be communicated 30 days before
      the end of contract to allow for proper endorsement of documents and tasks.
      Group Managers and Unit Heads shall jointly be evaluated by the Executive
      Director and Deputy Executive Director.
      The evaluation of the Executive Director will be conducted by a panel composed
      of the Chair of the CAI-Asia Board of Trustees and a minimum of 1 member. The
      decision of the evaluation panel will be passed on to the Board of Trustees for
      concurrence/adjudication

Detailed Procedures:

1. FAS shall announce the start of the performance evaluation period.

2. The ratee (staff being evaluated) shall accomplish the PER form. (See Annex 7).
   Performance shall be assessed based on the criteria indicated in the form that
   measures the effectiveness and technical quality of the work delivered against the
   standards required by the CAI-Asia Center. Exceptional or unsatisfactory
   performance and continuing appreciation of good performance will be noted.



                                                                                        49
CAI-Asia Center Operations Manual
Revised June 2010
3. A performance evaluation conference which is a face to face meeting between the
   Division Manager, the ratee in the presence of the Deputy Executive Director to
   review the PER shall be undertaken.

4. The PER shall be finalized based on the results of the performance evaluation
   conference. If necessary changes to the position description or the TOR shall be
   made to form the basis of review during the next evaluation cycle.

5. The written record of the evaluation shall be reviewed by the next level of supervision
   (i.e., by the Deputy Director and Executive Director)

6. Both the ratee and the rater shall affix their signatures on the final PER form. An
   employee's signature does not reflect agreement with the assessment; it merely
   confirms that the staff was given the opportunity to discuss the official review with the
   immediate supervisor. The staff may request for a follow-up evaluation conference
   in order to seek further clarification or adding information to the evaluation. Follow-up
   sessions must be requested within two working days following the initial performance
   evaluation, except when the staff is on travel or on leave in which case, the staff can
   request for follow-up session within 2 days after reporting back for work.

6.3     Consultant Selection and Recruitment
Consultants are individuals or entities with special expertise in one or more technical
fields. The CAI-Asia Center will engage consultants to supplement its staff by providing
specialized expert knowledge and advice. When necessary, individual staff consultants’
assignments may include work that is similar to the work regularly performed by CAI-
Asia Center staff if no staff is currently available for the assignment, or staff skills-mix
needs to be supplemented.

Consultant services are contracted for specific periods and specific tasks, the terms and
conditions of which are determined by the Division Manager with the approval of the
Executive Director.

To support the need for careful screening of candidate consultants the CAI-Asia Center,
Inc. shall build up a database for its consultants that allows for individual and consulting
firms to register for free and to receive notices on the consulting needs of the CAI-Asia
Center, Inc. EOIs will similarly be advertised online.


6.3.1   Types of Consultant Assignments

   International, if an international experience is required or if the job assignment is
   international in nature, that can come from all countries unless specified by the
   funding agency; and
   National if required expertise is available in the assignment country, and only
   nationals of the assignment country or firms registered in the assignment country
   may apply and be considered.

6.3.2   Types of Consultant Contracts

                                                                                         50
CAI-Asia Center Operations Manual
Revised June 2010
1. Resource Person assignment – applies to individual consultants engaged to facilitate
   conferences, workshops and seminars financed by the CAI-Asia Center, and where
   engagement lasts up to a maximum of 10 days and cost no more than US $ 10,000.
2. Individual contracts that can either be:
     a. Short-term contract– applies to individual consultants engaged on a fixed daily
         rate for a period not to exceed 12 months.; and
     b. Long-term contract – applies to individual consultants who will perform a
         specific task over an initial engagement or extension for a total period of 12
         months or more.
3. A contract with consulting firms is entered into by the CAI-Asia Center and a
   consulting firm that will provide consulting services based on the specified TOR.
   More than one consultant may be assigned to provide work that falls within the TOR
   under this type of contract.

6.3.3   Eligibility

Unless specified by the funding agency, the CAI-Asia Center permits firms and
individuals from all countries to offer consulting services for projects of the CAI-Asia
Center. Subject to the terms and conditions of the funding source, the following eligibility
conditions may apply:

   Government-owned enterprises or institutions may be considered in selection of
   consulting firms only if they can establish that they (i) are legally and financially
   autonomous, (ii) operate under commercial law, and (iii) are not dependent agencies
   of the borrower, sub-borrower or grant recipient. The CAI-Asia may however agree
   on the hiring when the services of government-owned universities or research
   centers in the borrower’s or grant recipient’s country are of unique and exceptional
   nature, and their participation is critical to project implementation. On the same
   basis, university professors or scientists from research institutes can be contracted
   individually by the CAI-Asia Center.
   Government officials and civil servants may only be hired under consulting contracts,
   either as individuals or as members of a team of a consulting firm, if they (i) are on
   leave of absence without pay; (ii) are not being hired by the agency they were
   working for immediately before going on leave; and (iii) their employment would not
   create a conflict of interest.
   Consulting firms or individual consultants that have a business or family relationship
   with a staff of the CAI-Asia Center who are directly or indirectly involved in any part
   of (i) the preparation of the TOR of the contract, (ii) the recruitment process for such
   contract, or (iii) supervision of such contract may not be awarded a contract, unless
   the conflict stemming from this relationship has been resolved in a manner
   acceptable to the CAI-Asia Center throughout the recruitment process and the
   execution of the contract and reported to the remuneration committee.

6.3.4   Selection of Individual Consultants

For resource person assignments described in Section 6.3.2, item 1:

1. The user Division prepares the TOR, the qualification and experience requirements
   and cost estimates including the source of budget.

                                                                                         51
CAI-Asia Center Operations Manual
Revised June 2010
2. The user Division selects a qualified candidate and prepares an invitation letter
   offering an honorarium and out-of-pocket expenses.
3. The letter, TOR, cost estimates, and the candidates’ bio-data, shall be submitted to
   the Executive Director for approval.
4. FAS transmits the letter and TOR to the candidate for acceptance.
5. Upon acceptance, FAS shall prepare the contract of services.

For individual consultants defined in Section 6.3.2, item 2a and 2b.

1. The user division prepares the TOR and request for consultancy for endorsement of
   the Deputy Executive Director and approval of the Executive Director.

   The TOR form (see Annex 9) indicates:
    1. objectives of the assignment;
       scope of work;
       detailed tasks;
       deliverables or reporting requirements; and
       estimated dates for which the services will be required

   The request for consultancy (See Annex 10) shall indicate:
      the project under which the consultancy services is required
      the budget line
      maximum budget available for the service (indicated in the Project Fund Status
      Report)

2. Upon approval, FAS advertises the available consultancy position, via the CAI-Asia
   Center website Business Opportunities listing. FAS shall require the submission of
   the Expressions of Interest (EOI) (Annex 11) and Curriculum Vitae (CV). (Annex
   12Error! Reference source not found.)
3. User division initiates selection through:
   A. Single source selection (SSS) for:
          Short-term appointments with period of 3 months or less; and
          Assignments that require domestic/national expertise;

   B. 3 CVs, where selection is made through comparison of qualifications of at least
   three candidates among those who have expressed interest in the assignment or
   have been approached directly by the CAI-Asia Center. It is applicable:
          For appointments of more than 3 months
          Assignments that require an international consultant; and
          When a former CAI-Asia Center Staff is being considered.

   The use of the 3 CV method may be waived in special cases with justification when a
   candidate is clearly better qualified than any other because he or she previously
   completed a similar assignment for the CAI-Asia Center and performed satisfactorily.
   In this case, the user division submits a recommendation for single source selection
   to the Executive Director for approval.

4. For the 3 CV method, the user Division ranks the 3 candidates based on the criteria
   that include:   relevant experience related to the assignment and general


                                                                                    52
CAI-Asia Center Operations Manual
Revised June 2010
   qualifications that includes academic background, etc. The rating sheet shown in
   Annex 13 can be used in ranking candidates.
   The User Division interviews the three candidates either through face to face
   meeting or teleconference.

5. For both procurement process A and B. the user division informs FAS of its
   recommendation for the selection of the first-ranked candidate based on the results
   of the ranking and interview.

6. FAS prepares the following for the endorsement of the Deputy ED and approval of
   the Executive Director:

        a. Offer letter; (Annex 14)
        b. Draft contract; (see Annex 15) that contains the following:
                i. Terms of Reference
               ii. Duty station (CAI-Asia Center Office or Branch, etc) and the Division
                   where the consultant will be assigned;
              iii. Number of days the consultants will be required to render service,
                   starting and ending dates;
              iv. Daily rate and/or overall remuneration including payment modalities
                   and schedule of payment.
               v. Other benefits that include cost of travel, per diem allowance, out of
                   pocket expenses that are applicable only when the consultant will be
                   on business travel outside his duty station; and
        c. Confirmation of acceptance (Annex 13)

7. The consultant agrees on the terms of the assignment, signs the confirmation of
   acceptance form (Annex 16) and returns the original to the FAS.
8. FAS issues the Notice to Proceed (Annex 17) and sends notice to the unsuccessful
   short-listed candidates.

Additional Guideline:
The Deputy Executive Director may serve as the approving authority for the hiring of
consultants when these are within approved project budgets. (See Deputy Executive
Director powers and responsibilities discussed in Section 4.3). In case of hiring of
consultants that are not indicated in approved project budgets, the Executive Director
shall be the approving authority.

6.3.5   Selection Process for Consulting Firms

1. The user Division prepares the proposal that includes TOR and request for
   consultant firms’ services to be approved by the Executive Director. The TOR and
   Request for services shall be prepared according to the process described in Section
   6.3.4.
2. Upon approval of the Executive Director, the FAS, advertises the consulting service,
   via the CAI-Asia Center website Business Opportunities listing section. The
   announcement shall require the submission of the Expressions of Interest (EOI) for
   firms (See Annex 18). Additional details as may be required by the user division can
   be added to the EOI.


                                                                                     53
CAI-Asia Center Operations Manual
Revised June 2010
3. The user division shortlists 3 consulting firms and rank these according to the
   evaluation/ranking form in Annex 19
4. The user division informs the Deputy Executive Director of the results of the ranking
   and requests endorsement of the no-objection for the conduct of negotiations with
   the first-ranked candidate to be approved by the Executive Director.
5. The Executive Director issues approval or no-objection to the negotiation.
6. The FAS and the user Division undertake negotiations and recommends hiring of the
   consulting firm.
7. Upon approval, FAS finalizes the contract. (See Annex 20). If a satisfactory
   agreement cannot be reached with the first-ranked firm, the negotiations will be
   terminated and the next ranked candidate will be invited for contract negotiation.
8. Contract signing by the Executive Director and the Manager of FAS and the
   authorized signatory of the consulting firm.


6.3.6    Consultant Performance Evaluation: Guidelines

Monitoring the progress and performance of work of the consultants will be exercised by
the Division Managers and Unit Heads under which the service is being performed.

If the consultant cannot deliver the outputs in the TOR or the quality of the output is not
as expected, the CAI-Asia Center may consider withholding partial or final payment. It is
the responsibility of the Division Manager and Unit Heads to provide guidance and
support where needed.

The FAS will keep a record of consultant evaluations for recruitment and future
assignments.

   A. Performance Evaluation of Individual Consultants.
      Within one month following completion of an assignment with the CAI-Asia
      center, the performance of an individual consultant is evaluated by the user
      division. The consultant is also evaluated at the mid-point of the services if the
      assignment lasts for 12 months or more.

        1.    The rater/evaluator (user division) completes the PER form (See Annex 21)
              by choosing one of four ratings for each performance criterion: excellent,
              satisfactory, marginal, and unsatisfactory. If the evaluator rates one or more
              criteria as less than satisfactory, the evaluator explains the reasons in the
              General Comments section of the form;
        2.    The PER is electronically sent to the Executive Director, Deputy ED and
              Division Manager of FAS
        3.    If the consultants’ overall performance is rated unsatisfactory, FAS shall
              exclude the consultant from short-listing for other assignments in the CAI-
              Asia Center.

   B.        Performance Evaluation of Consulting Firms
             The user division evaluates the consultant’s performance within 2 months from
             the date on which the consultant completes the assignment. If the assignment
             lasts 12 months or more, the consultant’s performance is also evaluated at the
             mid-point of the service.

                                                                                           54
CAI-Asia Center Operations Manual
Revised June 2010
            The evaluation follows the process outlined in the evaluation of individual
            consultants (Section 6.3.6, Part A, Items 1 to 6). The PER form to be used is
            attached as Annex 22.

      C.    Termination of Consultant Services
            If the user division deems that the consultant/consulting firm cannot deliver
            according to the Terms of Reference, a discussion with the consultant will be
            initiated by the user division. The discussion will be properly documented and
            all records of discussion including electronic mails, letters and memos will be
            maintained by the user division. If after the discussion, the consultants still fail
            to deliver, the CAI-Asia Center may cause the termination of the consultant
            services and withhold partial or final payment. It is however the responsibility of
            the user division to provide guidance and support where needed.

6.4        Staff Benefits and Entitlements

6.4.1      Advancement , Promotion and Salary Increase

Salaries of the Center’s staff shall be based on the salary bands approved by the
Remuneration Committee of the BoT in July 2007 and are stated in PhP using a fixed
USD exchange rate of PhP45.3 = US$1.

      The CAI-Asia Center shall at all times endeavor to provide its staff with opportunities
      for professional growth and advancement at the same time it will ensure that highly
      qualified individuals will be considered for employment within the Center.
      Staff advancement and promotion shall be carried out:
              - when a new position is created;
              - when an existing position is vacated and a recruitment effort is started;
                  and
              - through movements in the salary bands within each job group (i.e. (i)
                  Administrative support; (ii) specialists; (iii) division managers and units
                  heads; (iv) deputy executive director; and (v) executive director.

      Staff members who feel that they are qualified for the new or vacant position and
      deserving of upward movements in the salary bands are free to indicate their
      intention to apply in the case of new positions or vacant positions apply, especially if
      the new positions present them with opportunities for professional growth and career
      advancement. The staff member’s application will be considered along with the
      other applications.
      Salaries of the CAI-Asia Center staff are based on the assumption that the Center is
      a regional organization. The consequence of which is that salaries reflect market
      conditions and higher than in the case of an NGO with only a focus on the
      Philippines.
      The CAI-Asia Center By-Laws establishes the Remuneration Committee of the
      Board of Trustees of the CAI-Asia Center, which will review on a yearly basis and in
      consultation with the Executive Director the need to adjust the basic salary ranges
      taking into account inflation and changes in cost of living in Manila, Philippines.



                                                                                             55
CAI-Asia Center Operations Manual
Revised June 2010
6.4.2   Regular Benefits

The following benefits will be part of the overall remuneration and benefit packages for
CAI-Asia Center staff.

   Employer’s contribution to Social Security System – The amount of benefit shall be
   based on amounts prescribed by the Social Security System administration and
   applies to all job groups and salary ranges. This benefit is given only to Filipino staff.
   Employer’s contribution to Phil Health – The amount benefit shall be based on
   amounts prescribed by the Phil Health administration and applies to all job groups
   and salary ranges. This benefit is given only to Filipino staff.
   13th Month pay. Payment will be made on a pro-rated basis each month rather than
   at the end of the year.
   Paid incentive leave of 24 days per year including sick leave. The minimum legally
   required incentive leave is 5 days. The policy will be that a maximum of 10 days will
   be transferable to the next year. Excess leaves shall be availed or used otherwise
   these will be cancelled. At any given time, a maximum of 20 days accrued leave is
   allowed after which leave days will be cancelled. No encashment of leave will be
   allowed.

6.4.3   Additional benefits

The CAI-Asia Center staff will be part of any liability insurance policy taken out by the
Center to insure liability of its officers and employees.

The CAI-Asia Center will not make additional contributions towards Social Security,
health insurance and or pension provisions. Instead, basic salary ranges have been set
in such a manner to allow staff maximum flexibility in choosing their own risk profile and
insurance coverage and modality.

The CAI-Asia Center will not pay severance pay to staff which is engaged on a project
basis. It will follow the legal requirements for staff which is recruited on a non-project
basis.

6.4.4   Staff Development and Training

The CAI-Asia Center recognizes the potential of its staff to acquire skills and knowledge
for productivity improvement.

Opportunities for continued advancement shall be accorded the staff through provision
of two types of training: skills enhancement training and specialized training related to
the core technical functions of the CAI-Asia Center that shall be integrated in the Staff
Development Program.

Staff Development Program (SDP)

   The Deputy Executive Director shall lead the formulation of the SDP that will be
   approved by the Executive Director
   SDP formulation, annual review and updating shall be undertaken immediately
   following the performance evaluation cycle, during which the identification of skills
                                                                                           56
CAI-Asia Center Operations Manual
Revised June 2010
   and competencies required for each position as well as review of the training needs
   shall be discussed with each staff member.
   FAS shall implement the program and ensure that the costs for implementing the
   system are integrated in the annual budget of the CAI-Asia Center.
   The Deputy Executive Director shall, as part of the annual reporting, provide status
   on the implementation of the SDP that will be reported by the Executive Director to
   the Board.

The CAI-Asia Center, through the FAS, shall sponsor the attendance of staff members in
skills enhancement and specialized training courses.

Availment and attendance in training programs can be initiated through the following:.
    The immediate supervisor may recommended attendance of staff to training based
    on the SDP;
    The immediate supervisor endorses participation to demand-driven training by staff
    members based on the SDP to the Deputy Executive Director and Executive
    Director;
    Staff member receives direct invitation or takes initiative to apply for a training
    program with full funding from donor or other sources and secures the endorsement
    and approval of the immediate supervisor, Deputy ED and Executive Director; and
    In-house training programs to be organized by FAS.
In general, the request to participate in training programs shall be approved by the
Executive Director in consideration of the following:
           - the needs and priorities of the CAI-Asia Center
           - available budget
           - performance of the staff member;
           - length of service; and
           - conflicts, if any, with the work program of the staff member.
    The cost of the training, except in the case of direct invitation shall be borne by the
    Center, including time-off with pay. If the training would require the post to be
    vacated within a period of 30 working days, an officer-in-charge, in case of a division
    manager may be assigned and duly compensated during the period.


6.4.5   Salary Adjustments

Adjustments along the salary bands and the granting of bonuses are contingent upon
the availability of funds and subject of a review to be made by the Executive Director.
Salary increases shall be made on the basis of performance for the latest performance
evaluation year and the salary zone i.e., the relative position of a staff members’ salary
within the salary range. (See Section 6.4.1 on Advancement, Promotion and Salary
Increase).

6.4.6   Overtime

The CAI-Asia Center will pay overtime to administrative and support staff whereby
overtime payment will be calculated in line with the provisions of the labor code of the
Philippines. The details of the overtime payment arrangements will be documented in
the Operational Manual of the CAI-Asia Center.


                                                                                        57
CAI-Asia Center Operations Manual
Revised June 2010
The Executive Director of the CAI-Asia Center will have discretionary power to allow
compensation in full or in part in case employees of any rank are required to work during
weekends or to perform overtime for an extended period of time.

6.4.7   Benefits for internationally recruited staff

Internationally recruited staff will receive an economy class ticket on start and end of the
contract for the person recruited, his or her spouse, and for a maximum of three children
under age of 18. In addition a settling in allowance of maximum $ 7500 will be given in
the case of a two year contract and an equivalent to the staff’s one month net salary if
contract is more than one year and below two years. No educational allowances will be
provided. The CAI-Asia Center will however assist in making arrangements for schooling
etc.

Internationally recruited staff shall have an option to receive salary solely in the local
currency or a combination of local currency and up to 40% in US dollar currency. The
election shall be made only once within a one-year time frame and shall be subject to
the approval of the ED.

In addition, internationally recruited staff shall get additional 2 days incentive leave per
year.

6.5     Work Hours
        Core hours in the CAI-Asia Center is from 9 am to 5pm.
        Staff members are required to render a total of 40 hours per week.
        Working hours shall be flexible as long as the minimum standard workweek of 40
        hours will have been rendered in the office or on duty station in case of travel.
        The CAI-Asia Center office shall remain open and shall operate on schedules
        that adhere to the office’s location.
        A workweek may exceed 40 hours but the additional time rendered will not be
        compensated unless authorized as overtime (See Section 6.4.6) by the Division
        Manager/Executive Director of the CAI-Asia Center.

6.6     Official Holidays and Leave
The CAI-Asia Center shall observe 11 paid regular holidays each year: (also see Section
 ).

   New Year's Day – 1 January
   Holy Thursday – According to calendar
   Good Friday – According to calendar
   Araw ng Kagitingan – 9 April
   Labor Day – 1 May
   Independence Day –12 June
   National Heroes Day – Last Monday of August
   Eidul Fitr – According to calendar
   Bonifacio Day – 30 November
   Christmas Day – 25 December

                                                                                               58
CAI-Asia Center Operations Manual
Revised June 2010
   Rizal Day – 30 December

When any of the above holidays fall on a Saturday or Sunday, the preceding Friday or
the following Monday will be observed as a holiday. When a holiday is moved to the
nearest Monday or Friday, holiday shall be observed on such declared day.

If the employees are not required to work during declared Nationwide Special Holidays,
there is no pay. If required and the employee reports for work, Center is obligated to pay
130% of the regular rate.

For declared special working holidays, an employee is entitled only to his basic rate for
work performed. No premium pay is required since work performed on said days is
considered an ordinary working day.
Staff members are also entitled to maternity leave of 60 days in case of normal delivery,
or 78 days in case of caesarian section delivery with benefits equal to 100% of the
average salary credit of the staff.

Male staff members are also entitled to paternity leave of 7 days as required under
Philippine Republic Act 8187.

6.7    Harassment

The CAI-Asia Center shall ensure that the staff members enjoy a work environment free
from all forms of harassment, whether on the basis of race, religion, national origin,
gender or any other form of personal identity. It is the unwarranted or unwelcome
behavior, verbal or physical, that interferes with work or creates an intimidating, hostile
or offensive work environment. If a specific action by one person is seen as offensive or
intimidating by another, that action might be viewed as harassment, whether intended or
not. Harassment can take many different forms including intimidation, abuse of authority
and sexual harassment and if proven, constitutes misconduct and may lead to
disciplinary action.

Harassment complaint procedures:
1. Any staff member who feels he or she has been harassed is encouraged to report
   this immediately to his or her supervisor unless the supervisor is the subject of
   complaint. In this case, the issue should be brought to the attention of the Executive
   Director.
2. The immediate supervisor and the Deputy Executive Director shall undertake an
   investigation, clarify the circumstances with the complainant and if appropriate to
   interview the staff member about whom the complaint has been made.
3. If the issue cannot be resolved at this level, it shall be referred to the Executive
   Director, who may constitute a committee to review the case. Such Committee shall
   include as members, the Executive Director, Deputy Executive Director and an
   outside member if necessary and appropriate.
4. The committee makes a recommendation and submits this to the Executive Director
   for review.
5. The Executive Director shall make a final recommendation and provide a written
   report to the staff member and other concerned parties of the decision and the
   actions to be taken.

                                                                                        59
CAI-Asia Center Operations Manual
Revised June 2010
6. The internal process will terminate whenever the staff member’s concern(s) have
   been resolved and appropriate agreement reached. A written report of the
   agreement will be signed by the Deputy Executive Director and the staff member and
   forwarded to the Executive Director for approval.
7. The Executive Director will report the matter directly to the Chair of the CAI-Asia
   Board of Trustees.

Contractors and consultants whose conduct is assessed to be harassing in nature shall
be subject to the terms and conditions of their respective contracts particularly on
Suspension and Termination of contract.

6.8     Separation

Separation from employment at the CAI-Asia Center may take the form of: completion of
appointment; resignation; and dismissal from service.

6.8.1   Resignation

Staff members may file voluntary resignation by informing their immediate supervisor of
their intention and serving a written notice to the Executive Director at least two months
prior to the intended date of resignation. Resigning staff members are entitled to receive
any accrued salary, and any other benefits.

6.8.2   Dismissal

The CAI-Asia Center may find it necessary to terminate the services of a staff member
for just cause or for unsatisfactory performance and other reasons, as explained below:

Case A:        Serious misconduct or willful disobedience, gross and habitual neglect by
               the employee of his/her duties, fraud or willful breach of trust, commission
               of a crime against the Center or its employees.

Dismissal Procedures and/or in instituting correction actions/penalties
1. FAS issues a written notice upon the advice of the Deputy Executive Director/
   Executive Director, stating the acts or omission constituting grounds for dismissal. .
2. Staff responds to the allegations within 72 hours
3. Staff shall be given opportunity to be heard and defend himself/herself in a
   conference and subsequent investigation to be undertaken by the Division Manager
   of FAS, Deputy ED and immediate supervisor;
4. If the CAI-Asia Center, after having heard the response of the staff member, still
   decides to dismiss the person concerned, a written notification of this decision and
   the reasons for the decision shall be given.
5. If the group decides to institute disciplinary actions, the rules indicated in Section 6.9
   shall apply.

Case B:        Dismissal for gross and habitual neglect by the employee of his/her duties

1. The Executive Director/ Deputy Executive Director shall give an informal spoken
   warning to the staff member concerned.


                                                                                          60
CAI-Asia Center Operations Manual
Revised June 2010
     A written warning informing the staff of the offense shall be issued depending on the
     gravity of the act committed.
2.   A special performance evaluation will be carried out by the Executive Director,
     Deputy Executive Director in consultation with the Division Manager of the staff
     member concerned.
3.   FAS issue a written notification of the management decision to terminate his
     appointment unless significant improvement can be achieved within two months.
4.   A second review will be held after two months and final decision will be
     communicated to the staff member on continuance or termination of services.
5.   During the two month window period, the committee may decide to institute
     corrective actions/penalties, in which case the rules indicated Section 6.9 on
     disciplinary measures shall apply. .

Authorized causes
The CAI-Asia Center may also terminate staff member/s due to the following, as a labor
saving policy, redundancy, retrenchment and health reasons, for which a separation pay
will be provided. Project staffs that are not entitled to separation pay shall be informed of
the planned retrenchment at least 60 days prior to separation to allow the staff to make
necessary arrangements.


6.9     Disciplinary Measures
The Executive Director of the CAI-Asia Center may impose disciplinary measures on
staff members whose conduct is unsatisfactory. The measures may include informal
spoken warning, written warning, written censure, suspension without pay, demotion,
and/or dismissal. Management may be guided by the types of administrative offenses
and corresponding corrective actions/penalties in applying disciplinary action described
in Error! Reference source not found..

     A written warning informs the staff member concerned of the nature of the
     misconduct or deficiency, the method of correction and the probable consequence of
     continued misconduct or deficiency. It is to be distinguished from an informal spoken
     warning.

     Written censure is a formal written expression of institutional reprimand which
     contains a description of the censured conduct. This shall be delivered to the staff
     member concerned and a copy shall be maintained by FAS.

FAS shall issue written notice of the disciplinary action to the staff concerned.

The Executive Director may also be suspended from duty, with pay, pending
investigation with the suspension being without prejudice to the rights of the staff
member.

Staff members whose appointments are terminated by the Executive Director, or who
are suspended shall be entitled to a written statement of cause at the time notice is
given, and shall have the opportunity to reply in writing. Staff member shall have the
right to appeal in accordance with Section 6.10.2.


                                                                                          61
CAI-Asia Center Operations Manual
Revised June 2010
6.10 Grievance and Appeals

The Grievance and Appeals policy of CAI-Asia Center provides opportunity for staff
members to articulate his dissatisfaction from the CAI-Asia Center or from immediate
supervisor/s and to seek redress.

Grievance is defined as dispute or controversy arising from the implementation,
interpretation and enforcement of company personnel policies’ and dissatisfaction with
some aspects of staff relationship, status with co-workers, supervisors. In the presence
of grievance and when the employer/employee invokes the grievance redressal
mechanism to resolve the dispute or controversy, the following process shall be
followed:

6.10.1 Grievance Process

1. In the first instance, an oral discussion shall be undertaken where staff member
   concerned shall present his complaint orally to his immediate supervisor. However, if
   his subject of complaint is his immediate supervisor, he should bring his complaint to
   his Assistant Director.
2. If, staff concerned is not satisfied with the oral discussion, he may submit his
   grievance in writing through his immediate supervisor if he is not the subject of
   complaint, otherwise, to Deputy Executive Director.
.
3. The Deputy Executive Director shall in consultation with the Executive Director,
   constitute a grievance committee to assess the merits of his complaints. The
   committee may conduct hearings, interview all parties and take whatever action is
   necessary to present a report and recommendation to the Executive Director, 10
   days following the investigation.

4. The Executive director will make a recommendation and provide the staff member
   concerned and the immediate supervisor of the needed actions to be taken. A written
   agreement will be signed by the immediate supervisor and the staff concerned and
   forwarded to the Executive Director for approval.

5. If the staff member is still not satisfied with the management action, he may appeal
   the decision.

6.10.2 Appeals Process

The appeals process will commence only when the grievance procedures have been
undertaken.

If the staff member believes that his grievance has not been satisfactorily resolved, the
Executive Director will submit the matter for the review of the Chair of the CAI-Asia
Board of Trustees, who will review the case and provide a response in writing to the staff
member making the appeal.




                                                                                       62
CAI-Asia Center Operations Manual
Revised June 2010
Chapter 7: Procurement


7.1    Objectives
   To ensure that a purchase of goods or services is made only when there is a
   legitimate need and in accordance with the Center’s procurement policies and Board
   approved budget.
   To ensure that materials, supplies and services purchased are of acceptable quality
   standards acquired at the most economical cost with the most favorable payment
   terms.
   To ensure suppliers deliver at the right time in accordance with the requirements of
   the Center.
   To ensure purchase orders and contracts comply with applicable laws and
   regulations.

7.2    Authority and Responsibility
The Purchasing Section of the Finance and Administration Services division
(Purchasing) is responsible for the sourcing of goods and services (other than services
of Consultants). Their responsibilities include, among others, initiating the canvassing
and negotiating of prices with suppliers; choosing a supplier and awarding of bids based
on their ability and capability to meet the Center’s requirements; recording and
evaluating the performance of the suppliers; maintaining a professional business
relationship with suppliers and the Center’s functional departments.

The Center’s purchasing staff is specifically authorized by the Center to commit up to
certain value limits, in commercial arrangements, and should be the primary Suppliers’
contact for the Center. No other Center employee, unless specifically granted such
authority, should negotiate with suppliers or Center either verbally or otherwise.

In unusual circumstances, Purchasing will commit the Center to buy through a verbal
agreement without consulting the using unit. This commitment will be made only when
there is a justified need for a prompt decision which prevents consultation and when
there is a history of similar purchases. When this kind of commitment has been made,
Purchasing will secure requisitions or other written approval from the using unit as soon
as possible.

Procurement of services of Consultants is regulated under Section 6.2.

7.3    Goods and Services
Procurement for goods and services refers to the purchase of goods and services
necessary to facilitate the general administration of the Center such as the purchase of
office supplies, equipment, general administrative services such as security, janitorial,
etc. and the purchase of goods and services required by the technical divisions other
than services of Consultants.
                                                                                      63
CAI-Asia Center Operations Manual
Revised June 2010
7.3.1 General Policies

Telephone Order
In emergency situations (e.g., when the purchase is needed because time is of the
essence), Purchasing may authorize to provide a purchase order number so that a
telephone order may be placed. In such cases, the issuer should promptly send the
purchaser a properly authorized requisition.

Purchasing for Personal Use
No employee will use the Center’s name to purchase merchandise or service for
personal use.

Consolidation of Purchases
If several units or locations need to purchase the same material, every reasonable effort
should be made to consolidate orders and/or purchases.

Gifts from Supplier
No employees shall accept gifts from suppliers in relation to their performance of work.
If gift is offered, for example during holiday season or complimentary hotel
accommodation and travel mileage incentives, this should be turned over to HR
Department for raffle. In case the gift is perishable, this should be shared with co-
employees.

Purchasers will neither solicit nor accept money, loans, credits, discounts, entertainment
or gifts/favors that could influence purchasing decision from suppliers or potential
suppliers. A promotional material of little commercial value (such as calendar or paper
weights) which may bear the supplier’s advertising is acceptable.

Before accepting offers of travel or lodging from a supplier or prospective supplier,
employees should obtain approval from the Executive Director (Deputy Director). The
reason for accepting such travel or lodging should be justified as being sound for
business reasons and should not obligate the Center.

Performance Review of Suppliers
Periodic review (at least once a year) shall be conducted to ensure that major suppliers
consistently meet the Center’s standards. The review shall be based on service, quality
and price.

Confidentiality of Supplier’s Information
All information about the supplier’s operations given by him in confidence will be handled
confidentially and should not be disclosed to other suppliers prior to opening of bids or
selection. Prior to opening of bids or selection, all quotations offered to the Center are
presumed to be confidential and shall not be disclosed in specific terms to other
suppliers or other parties who are not parties to the transaction.

Quotation Addressee
All quotations shall be addressed to the Executive Director or Deputy Executive Director.
Quotations addressed to a different person shall not be honored.



                                                                                       64
CAI-Asia Center Operations Manual
Revised June 2010
Arms-length Transaction
All purchasers should maintain arms-length relationship with the Supplier and exercise
discretion in their personal relationship with the Supplier’s representatives.

Objectivity
No relationship should exist between the purchaser and supplier which could influence
the objectivity of the purchase. This includes the companies or any business
establishments in which the purchaser or other officers and staff of the Center and their
family members (up to the 4th degree of relationship by consanguinity or by affinity) has
a significant or indirect financial interest. Also, the purchaser shall separate his personal
interests and feeling from their selection of suppliers to assure that purchasing decisions
are based on service, quality and price.

Compliance with Policies and Procedures
Purchasing shall direct all their activities so that interests of the Center are served in all
transactions and that all said transactions are carried-out in compliance with established
policies and procedures.

Fair Treatment and Equal Opportunity
Purchasing shall promote supplier relationship by treating them courteously and
impartially. Purchasing shall extend every practicable opportunity to small companies so
that they can participate in the supply of products and services to the Company.

Compliance with Laws
All laws and regulations governing buying and selling shall be observed. No purchases
shall be made if Purchasing has any doubt about the legality of the transaction, the
source of the goods or the identity of the counter party.

Lowest Bidder Exception
When all things are equal other than price quoted, the lowest bidder shall always be
selected. If the lowest is not selected, the reason for that decision will be documented
and kept with the Purchase Order to the successful supplier.

Separation of Incompatible Duties
Requisitioning, purchasing and controlling should be done by a separate organizational
unit/s or at least by different individuals from those in charge of receiving and paying of
purchases, so that separation of responsibilities will assure the desired level of internal
control.

Transparency
The Center will use all those mechanisms that encourage transparency in purchase
management, especially in negotiations with suppliers and in decision-making when
awarding purchases.

Short-term Service Engagements
Procurement of short-term services such as for lay-outing of logo, editing, proof-reading,
and the like shall be covered by the Center’s procurement policies and procedures and
the cost shall be treated as part of operating expenses.



                                                                                           65
CAI-Asia Center Operations Manual
Revised June 2010
7.3.2 Purchase Requisition and Approval

Requests for the purchase of goods and services shall be covered by a Purchase
Requisition Form (PR) (see Annex 24Error! Reference source not found.). Purchases
from Petty Cash Funds (PCF) shall not require PR but shall be covered by an approved
Request for Petty Cash (PRC). Only duly approved PRs shall be processed by the
purchasing section.

The approval limits for Purchase Requisitions are as follows:

       Division Heads                               - up to US$2,000
       Executive Director / Deputy ED               - up to US$50,000
       Executive Director co-signed by the
        Treasurer of the Board of Trustees          - over US$50,000 up to US$150,000
       Executive Director co-signed by the
        Treasurer and the President/
        Chairman of the Board of Trustees           - over US$150,000

Breaking down or splitting purchase requisitions into small amounts to override
signatories is strictly not allowed.

Responsibilities of Requisitioner:

   1. Sets clear specifications that will ensure that materials and services ordered will
      fulfill the need.
   2. Keeps specifications as broad as practicable so that more than one vendor can
      compete for the business.           Normally, brand detailed specifications are
      challenged, if better alternative exists.
   3. Requisitions are made in advance of need to permit timely supplier selection and
      delivery.
   4. Notifies purchasing promptly when materials are unsatisfactory or not needed.
   5. Analyzes the quotations with regards to technical and quality issues.

7.3.3 Canvassing/Shopping Guidelines

All purchases should pass through canvassing procedures. The following guidelines
should be followed:

   If amount is = US$101 to US$200          - Telephone canvassing from 1 to 2
                                           suppliers. Details of the telephone
                                              canvassing should be recorded in writing
                                              by the staff.

   If amount is = US$201 to US$1,000         - Telephone canvassing from at least
                                               two (2) suppliers. Details of the telephone
                                               canvassing should be recorded in writing
                                               by the staff.

   If amount is = US$1,001 to US$2,000       - Written quotation from at least
                                               two (2) suppliers

                                                                                        66
CAI-Asia Center Operations Manual
Revised June 2010
   If amount is = US$2,001 to US$15,000 - Written quotation from at least
                                          three (3) suppliers

   If amount is = US$15,000 and above        - Written quotation from at least
                                               three (3) suppliers administered directly
                                               by the Purchasing Committee (see below)

A single quotation/or a single supplier shall be acceptable under the following conditions:

       When economic quantities justify a single supplier.
       When estimated purchase cost of a requested item is less than or equal to
       US$200.
       The service sought cannot be adequately described by specification or requires a
       unique skill.
       When the supplier is the sole agent/distributor of a certain product or service.
       When repeat order (e.g. the order is only an additional order from a past order
       from the same supplier) Provided, however, that the price quoted is the same as
       the original quote and/or favorably compares with quotations from other
       suppliers.

Exception to the above shall be approved by the Executive Director.

7.3.4 Purchasing Committee

A Purchasing Committee in the Center who shall administer the procurement process
related to purchases over US$15,000 shall be established. The Purchasing Committee
shall be composed of the following, at a minimum:

   a. Executive Director or Deputy ED
   b. Head of FAS
   c. Purchasing Officer

The functions of the Committee are as follows:

   a) Updates the policies and procedures covering the procurement function.
   b) Determines the most applicable procurement method to be used.
   c) Establishes the activities to be followed in conducting the bidding or selection
      process.

7.3.5 Preparation of Purchase Orders

A Purchase Order (PO) (see Annex 25) shall be prepared for the winning bidder or
selected supplier. The PO is a contract whose general terms and contents are approved
in advance by the Center’s legal counsel.

The PR, Summary of Quotations Received and individual supplier quotations shall be
attached to the PO (PO package) before forwarding the PO to the signatories.



                                                                                         67
CAI-Asia Center Operations Manual
Revised June 2010
The signatories for Purchase Orders are as follows:

       Division Heads                                 - up to US$2,000
       Executive Director / Deputy ED                 - up to US$50,000
       Executive Director co-signed by the
        Treasurer of the Board of Trustees            - over US$50,000 up to US$150,000
       Executive Director co-signed by the
        Treasurer and the President/
        Chairman of the Board of Trustees             - over US$150,000

7.3.6 Detailed Procedures

   1. Requisitioner prepares a PR and details of specifications and obtains necessary
      approvals.

   2. Purchasing receives the PR, reviews the request for general and specific
      information and verifies the authorized signatories.

   3. Purchasing initiates canvassing/shopping, negotiates the commercial terms and
      obtains quotations from suppliers.

   4. Purchasing determines the chosen supplier based on final quotations received
      and in accordance with canvassing policies and procedures. The details of the
      quotations received (including those from telephone canvassing) such as the
      item to be purchased, detailed product specifications, quantity, price, discounts,
      warranty, terms of payment, conditions, among others, are summarized and
      documented in a Summary of Quotations Report where these items are
      presented in a table and wherein the selected supplier is clearly identified or
      indicated.

   5. Purchasing prepares the Purchase Order, secures required signatories and
      transmits it to the selected supplier.

   6. Purchasing tracks the status of the Purchase Order and ensures delivery of the
      goods or services as agreed.

   7. Upon delivery, purchasing ensures that goods and services delivered conform to
      specifications and acknowledges receipt. For capital expenditure/fixed asset
      items, purchasing shall ensure that a property tag or sticker is placed before the
      property is sent to the requesting party. An Administrative staff shall encode the
      property details and the corresponding property tag/sticker into the Fixed Asset
      listing or inventory maintained by the Administrative staff. A complete inventory
      count of the Center’s Fixed Assets and other inventory properties shall be made
      at least once every year.

   8. When goods or services received are in order, purchasing initiates the payment
      processing and prepares a Request for Payment (see Section 11.2). The
      corresponding supplier’s invoice, supplier’s delivery receipt, billing statement or

                                                                                      68
CAI-Asia Center Operations Manual
Revised June 2010
       statement of account and other documents are attached to the Request for
       Payment before these are sent to Finance section for check preparation.
Chapter 8:            Project Management
8.1    General Principles of Project Management
Contract Management is a formal management discipline in which projects are planned
in a series of steps and executed using a systematic, repeatable, and scalable process.
A project is defined as a unique set of activities that are meant to produce a defined
outcome, with a specific start and finish date, and a specific allocation of resources.

This section of the OM provides the general guidelines in the development and
submission of project proposals, the project approval procedure, the implementation of
projects and contract management.

8.2    Project Proposals
8.2.1 Selection of Project Proposal Areas/Topics

The topic of project proposals shall be within the scope and priorities of CAI-Asia as
outlined in the CAI-Asia Strategy and shall contribute to the achievement of CAI-Asia’s
outcomes and mission.

8.2.2 Development of Project Proposals

Proposal in development shall be included in the Projects and Proposals Overview
maintained by FAS, and includes (a) project title (b) location (c) CAI-Asia manager (d)
total grant to Center (e) Center costs and overhead incl China and India (f) Consultants/
subgrants, (g) Other costs/expenses (h) Status. The information on each proposal shall
be updated at least once a month. A separate folder for each proposal in development
shall be created in the Proposal’s folder in the Center’s server files.

Proposal Format and Contents
The project proposal shall be written in accordance with the project proposal template,
unless the donor specifies a different format. The proposal includes
1. Introduction
2. Objectives, scope and outputs
3. Implementation steps and timeline
4. Project management and team
5. Budget

Work Plan
A Work Plan is usually only prepared after the proposal has been approved, unless the
potential donor requires a Work Plan to be submitted with the proposal. The Work Plan
includes key implementation steps/activities, timelines and outputs.

Staffing
Staff to be assigned to project shall match the qualifications, skills and technical
expertise needed to successfully implement the project. For each project, two managers
                                                                                   69
CAI-Asia Center Operations Manual
Revised June 2010
shall be assigned whereby a Country Coordinator can also act as manager. If staff CVs
are required, the Center’s 1 page standard CV template shall be used, unless a different
format is specified by the donor.

Budget and Funding
A budget shall be prepared based on staffing and expenditure requirements for each
implementation step / activity. The FAS Manager shall provide the daily or monthly rates
for staff included in the project proposal that includes overhead charges computed in
accordance with the method of computing charge-out rates discussed in Annex 45.

Charge-out rates are computed at least annually during the preparation of annual
budgets. The Audit and Remuneration Committees of the BoT shall concur or comment
on whether the overhead rates charged by the Center are reasonable and what expense
components would reasonably be included (e.g., business development costs). The
external/internal auditors shall review overhead charges and their recommendations
shall be considered in the formulation of overhead rates. For consultants included in the
proposal, a 15% management fee shall be applied. The Budget section of the proposal
shall indicate when disbursements of funds will be made.

8.2.3 Submission of Proposals and Follow-up

Proposals shall be reviewed by at least one manager who may not be the same person
as who wrote the proposal. The FAS Manager or the ED shall review proposals,
including the budget, with a total value or more than US$ 10,000. Proposals with a total
value exceeding US$50,000 shall be reviewed by the ED. Project proposals shall be
submitted in accordance with requirements from donor organizations. Unless a
timeframe is indicated when status of proposal will be announced, follow-up shall be
made on a timely basis.

8.3    Contracting for Accepted Proposals
8.3.1 Contract Review

The contracting process shall start shortly after acceptance by the donor of the proposal.
Generally, the donor provides a draft contract or LoA and sends this to the grantee for
review. CAI-Asia standard terms and conditions will be applied when the donor does not
specify any.

The project manager for the project, FAS Manager and Executive Director shall review
the provisions of the contract or LoA including supporting annexes and details before
submitting the document for signing by authorized representatives of the donor and the
Center. The review shall include as a minimum
    • General contract provisions, including a comparison with the standard terms and
       conditions of Center contract, to ensure that required standard legal provisions
       are included such as, ownership of project outputs, effect of force majeure,
       termination of agreement. Standard legal provisions shall be proposed if absent
       and modifications shall be proposed if significantly inconsistent with the Center’s
       standard terms and conditions, for example, on copyright.
    • The schedule of activities, key milestones, outputs/deliverables and other
       reporting requirements to ensure that these are reasonable and achievable.
                                                                                       70
CAI-Asia Center Operations Manual
Revised June 2010
       Necessary changes from the original proposal shall be communicated and
       clarified with the donor. This will ensure that there is a common understanding
       with the donor.
   •   Staffing requirements, whereby the staffing included in the proposal shall be
       retained as much as possible. If staffing changes are required, then these should
       ideally be reflected in the final contract.
   •   Provisions on financial matters including total budget and breakdown, schedule
       of fund disbursements and financial reporting requirements.

8.3.2 BoT Review and Approval Requirement

The Executive Director shall approve Contracts or LoAs with a value of up to
US$50,000. Contracts or LoAs with a value of more than US$ 50,000 and less than
US$ 500,000 shall be submitted to the BoT review on no-objection basis. Contracts or
LoAs over US$500,000 shall be reviewed and approved by the BoT.

8.3.3 Sub-contracting

Any work under the project that is subcontracted shall be accompanied by a Terms of
Reference for consultants incorporating tasks and timelines in accordance with the
project. For subcontracting of project components, the subcontractor shall prepare a
Work Plan for the subcontracted work. Reporting requirements, including financial
reporting requirement, shall be specified in the contract with consultants and/or
subcontractors consistent with requirement of the project donor.

8.4    Project Implementation and Reporting
8.4.1 Project Initiation

Project initiation or start-up shall commence upon the signing of the contract or LoA. At
this stage, the Center shall also identify actions in the communication of the project
objectives, implementation and outputs.

Project Folder on Server
The Project Manager shall create a project folder on the server with the following
subfolders
   • Management (includes proposal, contracts, budget, work plan, financial reports).
        The Proposal folder in its entirety shall be moved to the Management folder
   • Communication (e.g. letters, project summaries, press releases)
   • Implementation (one subfolder for each main implementation step/activity or
        deliverable e.g. survey, workshop, report)
   • Other

Project Documentation and Filing
• FAS shall create a project number which shall be used as reference of the project file
   binder as well as in the accounting system
• The Contract Management Officer (CMO) shall create a hard copy binder where the
   proposal, signed contract, work plan, budget details and other contracting documents
   shall be filed.

                                                                                      71
CAI-Asia Center Operations Manual
Revised June 2010
•   CMO shall also create a project folder under the Contracts Management folder in the
    server files where an electronic copy of the final proposal, final contract, printout of
    emails with no-objection approvals from BoT members, final outputs/deliverables
    shall be filed.


Project Summary
The Project Manager shall write and upload a project summary on the Clean Air Portal
under "What We Do". The summary should include
   • Working title
   • Main text with background, objective, activities/outputs
   • Official project title (e.g. long TA title), donor, partners, project duration, CAI-Asia
        contact, and any further links if needed. The amount of the grant need not be
        mentioned. Specific contract requirements on acknowledgment of the donor or
        grant source in reports or other publication shall be followed.

Team Meeting
The Project Manager shall hold a team meeting to explain the project, outputs, work
plan, roles and budget, and ensure that all team members have a clear understanding of
the project and its implementation.

8.4.2 Project Management and Progress Monitoring

Overall Project Monitoring
The Project Manager shall be responsible in
   • Monitoring the overall progress of the project and managing the project team to
       ensure that the project is planned in accordance with the Work Plan. The Work
       Plan shall be updated as required
   • Ensuring that project information on the Clean Air Portal is up to date, including
       uploading of key presentations, outputs, changes/extensions to the project
   • Obtaining updates on progress of work by consultants against the terms of
       reference, and of subcontractors against the work plan of a project component

The CMO shall retain an overview of CAI-Asia project summaries based on the latest
project summaries on the Clean Air Portal, which can be used as supporting information
for proposals and other purposes.

Outputs and Reporting Deadlines and Payment Monitoring
The CMO shall maintain an overview of all active projects which shall include the basic
information about in the contract as well as a list of contractual outputs/deliverables and
reporting deadlines as well as updates on schedule of contractual payments. On a
monthly basis, the CMO shall
    • Coordinate with the Project Managers to ensure that upcoming reporting
        deadlines and contractual payments are raised ahead of deadlines
    • Inform the FAS Manager and ED on upcoming and missed deadlines

Financial monitoring
The FAS Manager shall coordinate with project managers at least once a month on the
status of project funding and progress against budget. FAS shall also make available
details of project expenditures incurred, expenditures committed and uncommitted. FAS
                                                                                          72
CAI-Asia Center Operations Manual
Revised June 2010
and the Project Manager shall assess progress of the project vis-à-vis project
expenditures incurred.

A Periodic Project Financial Report shall be prepared at the end of every reporting
period (quarterly) throughout the implementation of the project. It shall show the total
approved budget for the project broken down by major type of expenditures incurred for
the current period and cumulative period to-date, budget balance, committed funds, and
uncommitted funds.
Contract Variations
Necessary changes and expected variation in contract scope or value, schedule of
activities, implementation period, key milestones or outputs/deliverables, staffing from
the approved contract or LoA shall be communicated as soon as practical to the donor
for necessary adjustments, in consultation with the FAS Manager. Approved variations
shall always be in writing either as a formal contract variation or addendum or through
an email as appropriate.

8.4.3 Project Closure

Final Project Financial Report
This shall be prepared upon completion of the project. It shall show a comparison of the
total budget by major project component or major type of expenditure with the
corresponding actual amounts. Budget overrun on individual components in excess of
20% shall be reviewed by the Project Manager together with the FAS Manager and ED.
Other Reports
Preparation of Final Narrative Reports and other deliverables required under the contract
shall be led by the Project Manager. The Project Manager shall also prepare a project
summary of approximately 2 pages in the fact sheet template of the Center, which shall
include the main outputs/results.

Project Documentation and Filing
Upon project completion, the CMO routes the project binder for project closeout review
and sign-off by the Project Manager, FAS Manager and ED. This ensures that all
contractual documents like proposal, contract, deliverables, and financial report are
included in the project folder. The CMO shall also ensure that the project folder in the
Contract Management folder on the server is completed and burn a CD for inclusion in
the project binder.

Project Debriefing and Evaluation
The Project Manager shall hold a project debriefing soon after the completion of a
project with at least the members of the project team and preferably the entire CAI-Asia
Center. The objective of the debriefing is, using the Team Project Evaluation Form
    • Report on outputs and results of the project
    • Discuss what went well, and what should be improved in future projects
    • Discuss how the outputs can be used for new projects or follow up work,
        dissemination to stakeholders

The Project Manager shall also send an evaluation questionnaire to the donor to obtain
feedback on the project using the Client Project Evaluation Form.

                                                                                      73
CAI-Asia Center Operations Manual
Revised June 2010
An independent evaluation is conducted if required by the donor and if funds were
allocated for the evaluation.




                                                                              74
CAI-Asia Center Operations Manual
Revised June 2010
PART 3: FINANCIAL MANAGEMENT,
ACCOUNTING AND AUDIT
Chapter 9:            General Principles
9.1    Objectives of Financial Management, Accounting and Audit
This section of the Operations Manual aims to:

       provide general guidelines in the recognition, recording and reporting of financial
       transactions;
       ensure transparent and reliable financial reporting;
       provide guidelines for an adequate internal control process of CAI-Asia


9.2    Method of Recognition of Financial Transactions
       Financial statements shall be prepared in accordance with the Philippine
       Financial Reporting Standards adopted from the pronouncements issued by the
       International Accounting Standards Board which follows the accrual basis of
       accounting. Under the accrual basis the following criteria shall be considered:

       •   Revenue from restricted funds is recognized upon fulfillment of the donor-
           imposed conditions attached to the revenue and/or to the extent that
           expenses are incurred.
       •   Restricted funds for which restrictions and conditions have not yet been met
           are classified as deferred support. At project completion date, any excess
           funds in the deferred support are returned to the donors unless otherwise
           agreed by both parties that the excess shall be retained by the Center and
           therefore credited to unrestricted support.
       •   Revenue from unrestricted funds is recognized upon receipt of the fund.
       •   Interest income is recognized as interest accrues (taking into account the
           effective yield on the assets).
       •   Expenses are recognized in the books when the expenses are incurred rather
           than when paid.
       •   The cost of property and equipment acquired is also recognized as an asset
           and depreciated over its estimated useful economic life.
       •   Cash advances paid are recognized as assets

While accrual basis of accounting shall be used for statutory financial reporting, reports
for individual projects shall be prepared in accordance with the modified cash basis of
accounting or fund accounting. Under the modified cash basis of accounting, income is
recognized when cash is received rather than when earned and expenses are
recognized when paid rather than incurred.

The functional currency of the Center shall be determined based on the currency of its
primary economic environment or the currency of the environment which the Center
primarily generates and expends cash.
                                                                                   75
CAI-Asia Center Operations Manual
Revised June 2010
The Center’s transactions will be recorded in their original currency and translated into
US Dollars (USD) and Philippine Pesos (PhP) for reporting purposes.


9.3    Responsibility for Monitoring and Control of Financial
       Transactions
The Finance and Administrative Services (FAS) is responsible for the overall monitoring,
control and reporting of financial transactions. While the Finance section will be
outsourced to a third-party services provider which shall be responsible for the day-to-
day recording and monitoring of financial transactions, it shall be under the direct
supervision and control of the Head of FAS. The Head of FAS shall regularly report the
Center’s financial status to the Executive Director.




                                                                                      76
CAI-Asia Center Operations Manual
Revised June 2010
Chapter 10. Sources and Recognition of Revenues
10.1 Sources of Revenues
The Center will derive the majority of its funding from grants/donations extended by
international development organizations, international foundations and NGOs. It will
also receive funding coming from private sector contributions.

Grants received can be divided into two categories with respect to usage by the Center:

(i) Core Funding or Program Funding which consist of funds that are “untied" whereby
    the CAI-Asia Center can freely decide how to use such funds in support of the
    implementation of the Business Plans approved by the Board of Trustees or funding
    to cover regular operational expenses. In these cases, the funding organization
    receives a copy of the audited financial statements of the Center without specific
    details on how the grant funds have been utilized.

(ii) Project Funding consists of “tied” funds whereby the project agreement specifies that
     funds can only be used for specific types of activities. Financial reporting includes a
     summary of specific expenses financed under this project.

The approved project or program proposal and the signed grant/donor agreement
constitute part of the program/project document for each project/program. The
agreement document must include a total budget covering the contribution from the
donor and a yearly budget covering the program/project duration.

Donors may pay their contributions in any freely convertible currency.

10.2 Category of Revenues
The Center classifies its revenues into two (2) major categories; Direct Revenues and
Indirect Revenues.

10.2.1 Direct Revenues

Grants – This refers to funds received from International development organizations,
foundations and NGOs and are covered with Agreements with the donor organization
specifying the terms and conditions for the contribution to the individual program or
project.

Private Sector Contributions – This refers to funds received by the Center from various
private organizations. The Board of Trustees, based on recommendation from the
Executive Director, determines the amount of minimum funding requirements for each
type or category of members.

10.2.2 Indirect Revenues

Investment Income – This represents the interest income from placement of temporary
un-disbursed funds. In this regard, the use of investment income from grant funds needs
to be discussed with the donor. Unless otherwise agreed with the donor, investment
                                                                                     77
CAI-Asia Center Operations Manual
Revised June 2010
income will accrue to the benefit of the CAI-Asia Center for funds retained by the CAI-
Asia Center unless otherwise provided in the agreement with the donor agency.

Miscellaneous - This includes sources of revenues other than grants, private sector
contributions and interests, such as forum and publication fees and other miscellaneous
revenues.


10.3 Recording and Documentation of Revenues and Cash
     Contributions
All revenues/contributions received are recorded when the cash is received in its original
currency and translated into their equivalent USD and PhP amounts. All amounts
received must be documented immediately by the Center through the issuance of a
controlled Official Receipt (see Annex 22) document signed and acknowledged by an
authorized Finance Officer. Grants received should be formally acknowledged in writing
by the Head of FAS within ten (10) days from receipt of the grant, in addition to issuing
the Official Receipt document. The Head of FAS shall verify and ensure that all the
receipt information is correct and approves the whole transaction.

The Center shall issue a Certificate of Donation (see Annex 27) or in such form
prescribed by the Bureau of Internal Revenue to all Philippine donors signed, on behalf
of the Center, by the Executive Director or the Deputy ED and countersigned by the
Chairman of the Board (or his authorized representative). These documents shall also
be issued to other donors outside of the Philippines when required.

If a cash contribution/grant received is in a currency other than USD, a separate record
is maintained in the currency of the contribution/grant.

Receipt of cash may originate from the following:

•   Amounts credited directly to the Center’s bank accounts
•   Receipt of checks
•   Receipt of cash
•   Payment for personal use of office facilities such as telephone or fax
•   Return of travel advances not fully used during travel
•   Return of advances for program or project activities but not fully used
•   Interest from bank balances
•   Refunds

All funds received in cash or checks must be deposited intact to designated bank
accounts not later than the next business day following the day of receipt. An Official
Receipt document must be prepared immediately for all funds received.

Amounts received in Philippine peso currency shall be deposited to a Peso bank
account while all other currencies shall be deposited to USD bank accounts.




                                                                                       78
CAI-Asia Center Operations Manual
Revised June 2010
10.4 Set-up of Line of Credit
Subject to the By Laws, the Center may avail of a credit line facility from both local and
international banks to temporarily fund its operating requirements when need arises.
The amount of and terms and conditions of the credit facility shall be determined by the
Head of FAS and the Executive Director for a credit facility up to US$50,000. The Board
of Trustees shall approve and authorize the opening of credit facilities more than
US$50,000, and the specific situations when funds can be availed from the credit line.

The utilization of loan proceeds shall be consistent with the purpose for which a loan is
availed of as approved by the Board of Trustees.




                                                                                       79
CAI-Asia Center Operations Manual
Revised June 2010
Chapter 11. Asset Management

11.1 Bank Accounts

11.1.1 Authority and Approval Requirement on Bank Selection

The Treasurer shall have custody of the funds, securities and assets of the Corporation.
He shall likewise oversee the financial procedures in the Operations Manual. The
Executive Director or the Deputy ED, in consultation with the Treasurer, will jointly
authorize the opening of bank accounts, including accounts to be maintained at
branches and offshore locations. Bank accounts shall be opened with commercial
banks with global or regional presence and of internationally recognized standing and
reputation. The Executive Director or the Deputy ED, in consultation with the Treasurer,
may allow the opening of bank accounts with local commercial banks for justifiable
operational reasons provided that the bank is of proven and nationally recognized
standing and reputation.

11.1.2 Types of Accounts Maintained

In order to facilitate the financial procedures and management of cash, the Center shall
open bank accounts, including at least:

•   a US$ checking account
•   a PhP checking account
•   a US$ investment account

The Head of FAS shall recommend to the Executive Director or Deputy ED and the
Treasurer, the need to open additional bank accounts when necessary.

The Center’s funds shall only be deposited into the Center’s bank accounts. Personal or
other non-official funds must not be deposited into the Center’s bank accounts.

All bank balances shall be reconciled with the accounting records on a monthly basis.
Reconciling items must be verified and adjusted as soon as possible and not later than
60 days.

11.1.3 Check/Bank Advise Signatories and Changes in Signatories

Dual signatories are required for any withdrawal or disbursement from bank accounts,
including request for fund transfers above US$50,000.

The signing authority limits for Checks/Bank Credit Advices follow:

Up to US$50,000                      - Executive Director or Deputy ED

US$50,001 to US$150,000              - Executive Director co-signed by the Treasurer
                                       of the Board of Trustees
Over US$150,000                      - Executive Director co-signed by the Treasurer
                                                                                       80
CAI-Asia Center Operations Manual
Revised June 2010
                                     and the President/Chairman of the Board
                                     of Trustees


The Executive Director or Deputy ED designates the signatories and determines the
related financial limits of authority up to US$2,000.

Signatories are responsible for ensuring that checks and bank transfer requests are
properly prepared and supported by approved adequate documentation and
authorizations.

11.1.4 Electronic Banking

To ensure the utmost security of bank accounts against unauthorized access and use,
electronic banking shall be made available only to the Center’s bank account used for
general operating disbursements. Use shall be limited to payments/transfers for the
following:

   •   Taxes and withholding tax remittances
   •   Government trust account contributions
   •   Staff cash advances
   •   Remuneration of staff
   •   Replenishment of Petty Cash and Revolving Funds

Electronic banking may be made available to other bank accounts but use shall be
limited only to inquiry and fund transfers to the Center’s bank account used for general
operating disbursements.

The authority and access codes for the bank accounts shall be assigned only to the
Head of FAS and the Executive Director and they should exercise due care to ensure
the utmost security and control of the access codes. The Head of FAS will be
responsible for payments and transfers via electronic banking. However, all transactions
shall only be done with approval by the Executive Director.


11.2 Investment Strategies
Temporary excess funds shall be invested in short-term and low-risk investments such
as time deposits and government treasury notes. Funds shall not be invested in any
speculative type of investments.

Funds shall be invested in commercial banks of internationally recognized standing and
reputation and with global and regional presence. A bank's credit rating shall be one of
the factors to be considered, among others.

The period or term of placements shall depend on cash flows position as determined by
Finance.




                                                                                     81
CAI-Asia Center Operations Manual
Revised June 2010
The Executive Director or Deputy ED, in consultation with the head of FAS, shall
determine the most efficient investment strategies and shall report investment
performance to the Board on a quarterly basis.

The Board of Trustees shall approve the selection of an asset managing firm or
commercial bank to manage the temporary un-disbursed funds of the Center.


11.3 Cash Management

11.3.1 Setup of Petty Cash/Revolving Funds (Cash Box)

Accountability
Cash box funds shall be maintained under an Imprest Fund system and responsibility
and control lies with the designated cash custodian. The funds are counted and
reconciled on a weekly basis and request for replenishment is prepared when the cash
balance falls to 30% of the approved Cash Box limit, or based on need.

Authority and amount
Setup of a Cash Box is authorized by the Head of FAS or the Executive Director as
follows:

(i) The Center shall maintain a Petty Cash Fund (PCF) amounting to PhP100,000.
Records and use of each PCF shall be accounted separately, and should never be
combined by the custodian.

(ii)   Amounts for other Imprest funds to be established, such as a Revolving Fund for
a branch or a specific project, shall be determined by the Head of FAS or Executive
Director (see 9.3.3). Revolving Funds are imprest funds that are established to serve as
a fund for the use of a Branch or a Specific Project. Like petty cash funds, revolving
funds are controlled by a custodian and use of the funds is limited for a specific purpose.
The amount of fund to be established and the maximum amount of disbursements that
can be taken from the fund shall depend on the requirements of the branch or project.

The Head of FAS or the Executive Director shall perform a surprise cash count of the
Cash Box at least on a quarterly basis.

Amounts Reimbursable
A Cash Box is only for operational expenses not exceeding PhP5,000 per transaction.
Exceptions for justifiable circumstances, such as an unplanned urgent purchase, are
allowed subject to prior approval of the Head of FAS.

Requirement for Reimbursement
Expenses paid from the Cash Box shall be supported by valid receipts and/or invoices
and other relevant documentation to support the expenses.

A valid receipt, invoice shall show the following, among others:

•   Name of the payee or supplier
•   Date of the transaction
                                                                                        82
CAI-Asia Center Operations Manual
Revised June 2010
•   Control number reference
•   Quantity and description of the item purchased
•   Unit prices and extended totals
•   Currency
•   Total amount paid net of discounts, if any.
•   Duly signed/authorized or machine validated

Any receipt showing a sign of counterfeiting or manipulations in the receipt such as
erasures or other unusual markings, shall not be valid.

11.3.2 Detailed Procedures on Disbursements

Disbursement
All payments out of a Cash Box shall be covered by a duly approved Request for Petty
Cash (RPC) (see Annex 28). No payment shall be made by the custodian without a duly
approved RPC or with amounts in excess of US$100 for USD requests or equivalent for
PhP5,000 unless approved by the Executive Director or the Deputy ED. “Custodian” as
used in this section refers to a staff from FAS...

All RPCs shall be approved by the respective Division Heads or Branch Heads.

The disbursement from PCF creates an advance made by the person receiving the
amount which should be liquidated immediately and no later than 30 days from receipt of
the petty cash. Unliquidated RPCs are deducted in full from the relevant staff’s nearest
payroll or from the nearest payments of the relevant consultants’ remuneration.

Liquidation of the Request for Petty Cash
All RPCs shall be accounted by the custodian and follow-ups should be made for the
liquidation of outstanding RPCs. A Fund Liquidation Form (FL) (see Annex 29) shall be
filled-up when liquidating RPCs or claiming reimbursements for petty expenses incurred.

The procedures to be applied in the processing for payment and liquidation of RPCs are
as follows:

1. The Cash Box custodian (custodian) receives the RPC and assigns a reference
   number (numbered as used) to the RPC for tracking purposes.

2. The custodian disburses the amount and ensures that the recipient acknowledges
   the amount received.

3. The custodian files the RPC and records the RPC in a logbook indicating the control
   number, date, recipient and amount.

4. When the RPC is liquidated, the staff prepares a FL and attaches the corresponding
   supplier’s Invoice/Billing Statement/Statement of Account, Credit Card Receipt,
   Official Receipts and other supporting documents and other details (as applicable) to
   the FL and have this reviewed and approved by the staff’s immediate superior.

5. The staff submits the approved FL, together with all supporting documents, to the
   custodian.
                                                                                     83
CAI-Asia Center Operations Manual
Revised June 2010
6. The custodian attaches the originally signed RPC to the FL and checks the details
   and completeness of the documentation.

7. Excess or unused amounts are returned to the custodian. When total expenses
   exceeded the amount in the RPC, the deficiency shall be refunded to the staff.

8. The custodian files the FL and updates the logbook indicating the date the RPC is
   liquidated. The custodian issues a cash advance Clearance Document (see Annex
   30) to the staff indicating the full settlement of the petty cash.

9. When the FL is in order and recorded, the RPC, FL and all attached supporting
   documents shall be cancelled immediately to avoid reuse of the documents. The
   cancellation is evidenced by using a rubber stamp imprinted with the word PAID in
   red ink across the face of the CV, invoice and other documents.

10. When the PCF balance reaches 30% of the authorized limit of the Cash Box, or
    when a need is expected, the custodian prepares a PCF replenishment summary
    indicating among others, the RPC reference, date, amount and the specific expense
    account or other appropriate accounts.

11. The custodian prepares a request for check payment (see Section 12.2)
    corresponding to the total expenses indicated in the FL replenishment summary.

12. The PCF should be accounted by the custodian on a weekly basis and the
    reconciliation schedule is filed for future reference.


11.3.3 Cash Position and Cash Flow Forecast

Cash Position Report
A Cash Position Report (see Annex 31) that shows the actual cash in bank balances
shall be prepared on a weekly basis (or when need arises). The Cash Position and
Bank Balances shall be reconciled to recorded book balances on a monthly basis.

Cash Flow Report.
A Cash Flow Forecast (see Annex 28) that summarizes the expected cash receipts and
disbursements for the next month shall also be prepared and updated on a monthly
basis.

11.3.4 Reserve Requirement

To ensure that the Center will have sufficient operating funds at all times, the FAS shall
ensure that it shall maintain at least a minimum cash balance sufficient to cover
operational expenses for a period of 2 months with short term investments sufficient to
cover an additional 2 [4] months of operations expenses. The CAI-Asia Center will also
endeavor to secure signed grants, sponsorships, and private sector memberships to
cover operational expenses for a period of 8 months.



                                                                                       84
CAI-Asia Center Operations Manual
Revised June 2010
11.4 Foreign Exchange
11.4.1 Reporting Currency

The Accounting system of the Center shall be maintained on a computerized accounting
system capable of handling multi-currency reporting. While transactions are recorded in
their original currencies, financial transactions are translated into USD and PhP for
reporting purposes.

While the USD is the widely accepted global trading currency, the Center may accept
funds from donors in all acceptable currencies other than USD.

The FAS shall determine and shall publish the exchange rates to be used by the Center
which exchange rates shall be derived from the rates published by the Philippine Dealing
System (PDS) or from the Banko Sentral ng Pilipinas. To simplify recording, one set of
rates may be used for a 2 week period commencing 1 and 15 of each month based on
the average daily rates of the previous month.

11.4.2 Translation of Foreign Currency Transactions

Foreign currency transactions are converted to the reporting currency values based on
acceptable accounting standards and using the exchange rates in Section 10.4.1.
Exchange gains or losses are recognized and reported in the period when the
transactions occurred.

Transaction Gains or Losses
Exchange gains or losses arising from the difference in the original booking rate and the
rate at the time of payment or receipt represent realized transaction gains or losses that
are recognized and reported in the period when the payment or receipt occurred.

Translation Gains or Losses
Exchange gains or losses arising from the translation of monetary balances (or
balances/amounts that are payable or collectible in cash in a future period) from their
recorded original booking rates to the spot rates at a given date (e.g. month-end rate).
The translation exchange differences are unrealized gains or losses that are recognized
and reported during the reporting period.




                                                                                       85
CAI-Asia Center Operations Manual
Revised June 2010
Chapter 12. Utilization of Funds

12.1 General Principles
Funds can only be utilized or committed within approved budgets, and in accordance
with the project plans and in overall compliance with the objectives of the Center.

Obligations, commitments or payment of funds can only be made upon approval by
authorized personnel, and in accordance with specific procurement, recruitment or other
policies of the Center.

Funds may only be utilized for projects with adequate cash balance, unless otherwise
approved by the Executive Director.

The Center is not responsible for any expenses that have occurred without the
appropriate approvals from authorized personnel.

Internal financial control is maintained for effective examination and review of financial
transactions to ensure:

•   Supporting documentation is adequate; that the goods and services have been
    satisfactorily received and not previously paid for;
•   Regularity of the receipt, custody and disposal of all funds;
•   Conformity of expenditures and commitments with all the allocations; and
•   Optimal use of resources in line with the overall policies of the Center.

On or before the 15th day of the third month after the close of its taxable year, the Center
shall directly utilize the funds received for the active conduct of the activities constituting
the purpose or functions for which it is organized and operated, unless an extended
period is granted by the Secretary of Finance; and that the following utilization
requirements are met:

    a)     The amount of utilization for administrative expenses shall not exceed thirty
           percent (30%) of the total grants/donations and income received for the
           taxable year;

    b)     Amounts set aside or to be set aside for a specified project must have the
           prior approval of the Commissioner of Internal Revenue in writing, pursuant to
           laws or administrative regulations presently in effect or may be promulgated
           from time to time.

12.2 Commitment of Funds
Except for commitments under staffing contracts, no contract, agreement or undertaking
for any amount will be committed until funds have been reserved in the accounts. The
FAS will prepare for obligation when a valid request is received and funds are available.



                                                                                            86
CAI-Asia Center Operations Manual
Revised June 2010
An obligation can be created through approval of any of the following documents;
Contract, Service Agreement, Purchase Order, Request for Advance or Request for
Payment.

The amount is obligated by FAS upon receipt of a certified request for an agreement,
contract, purchase, advance, or payment from the relevant Division. The request must
be accompanied by appropriate supporting documentation and any further explanation
or justification as may be required.

In all cases, request to approve a proposal to spend funds must be agreed by FAS
which will:

   check against the budget to ensure that sufficient funds are available in the relevant
   budget line for the expenditure; and

   if funds are available, approve the proposed expenditure and obligate funds
   accordingly. This obligation is recorded immediately in the financial system.

The record of the obligation entails that the amount specified is no longer available for
other project or operational expenditures. The obligation of funds represents a
commitment and when a claim for payment is submitted and approved, the
corresponding obligation will be paid.

Although the obligation will appear in the fund status report in USD, the actual obligation
is accounted in the currency of the proposed transaction. The USD amount of the un-
liquidated obligation may therefore vary with exchange rate from report to report.
Information is distributed to the projects on a monthly basis. More frequent follow up can
be done directly by accessing the accounting system or with FAS as needed.

12.3 Cash Advances
Advances are payments made before the actual expenses have occurred and thus the
necessary supporting documents (such as receipts, invoices, ticket stubs, etc.) are not
yet available.

There are range of advances permitted such as travel advances, advances for
workshops and training activities, and revolving funds.

Cash advances shall be for the implementation of projects or operational expenses;
funds shall not be used for personal cash advances.

Upon recommendation by the Executive Director and subject to the approval of the Head
of FAS, advances for travel, workshops and related activities may be extended to
consultants duly hired by the Center. FAS shall ensure that the consultant has sufficient
balance in their contracts to cover for any unliquidated advances at any given time.

Request and Approval

To receive approval for an advance, other than travel advances, a Request for Cash
Advance Form (RCA) (see Annex 33) should be put forward. Depending on the nature

                                                                                         87
CAI-Asia Center Operations Manual
Revised June 2010
of the advance, different procedures are required. All cash advances shall be covered
by a duly approved request signed by the respective Division heads up to US$2,000 and
provided these are budgeted; unbudgeted amounts and those in excess of US$2,000
shall require the approval of the Executive Director or Deputy ED up to US$50,000.

For travel advances, an approved Travel Authorization Form (TA) shall be required in
place of a Request for Cash Advance.

The approved advance request should be sent to FAS for payment processing. When
the FAS has ensured that the advance request meets requirements, a Check Voucher
(see Section 12.3) will be prepared. The request, together with other supporting
documents, will be attached to the voucher as evidence and payment will be made
accordingly. Unutilized advance balances must be returned within five (5) days upon
settlement of the advance, and similarly, if the activity is cancelled, the cash advances
should be returned without delay. Failure to return advances within the set time frame
will require FAS to deduct the amount from the responsible person’s payroll.

New advances will normally not be paid out before previous ones are settled.

Responsibility and Settlement
The person who signs as receiving the advance is accountable for the full and timely
settlement of the advance. Cash advances shall be settled/liquidated no later than 30
days from utilization of the advance.

In general, there may be three types of advance settlement, which are described in more
details as follows:

   1. Advance to be Cleared with Expenditures: Upon completion of the activity, the
      advance holder shall prepare a request for clearance of advances. The Cash
      Advance Liquidation Form (CAL) (see Annex 34) can be used for this purpose.
      The form should be submitted to the FAS for processing in the accounting
      records and filling.

   2. Advance to be Cleared with Cash Return: Any remaining unused cash should be
      returned to FAS within five (5) days upon completion of the activity, and after
      clearing the advance. FAS will issue an official receipt for such cash returned
      and clear the advances in the accounting records. Upon receipt, FAS will ensure
      that the cash is deposited to the bank within the next day.

   3. When Expenses Exceed the Advance Taken: Actual expenditures may exceed
      the approved advance paid based on an initial estimate. The advance holder
      must justify in writing the reasons for the additional expense, which must be
      concurred by the respective Division head and head of FAS. A Request for
      Payment or a Request for Petty Cash shall be prepared by the custodian
      depending on the amount payable to the staff.

Supporting Documentation Requirement
All expense claims/settlements must be accompanied with original receipts or paid
invoices. As a minimum, these receipts should carry the name and address of the
supplier, as well as quantity and specification, unit prices, currency and total price of
goods or services purchased. Possible discounts must be clearly specified.
                                                                                      88
CAI-Asia Center Operations Manual
Revised June 2010
When no formal receipt document is available, a certification should be made by the staff
who incurred the expense indicating the information required above and a clarification
why a formal receipt was not issued.

The FAS is responsible for verifying that the advance has been used in accordance with
the detailed budget breakdown that formed the basis of the advance request. Possible
inappropriate or inconsistent use will be reported to their respective superiors.

When FAS has ensured that the liquidation report and supporting documents meets
requirements, a Clearance of Advance document (see Annex 30) shall be issued, a
Journal Voucher (see Annex 35) will be prepared and the submitted documents will be
attached to the voucher and filed for posting in the accounting system.

If any of the supporting documents accompanying a claim are found to be counterfeit,
manipulated, or in other ways untrue, an investigation will be launched and the person
responsible will face disciplinary action.


12.4 Special Documentary and other Requirements for the Use of
     Funds
Other expense may have certain additional requirements as outlined below:

   Staff remuneration, consultancy/professional fees and related expenses, are in
   general regulated in the Personnel Manual section, and these expenses are
   approved and paid over the payroll system or through separate check payments.
   Signed contracts (letter of appointment, or extension) are required.

   Travel expenses, including air tickets and Per Diem are regulated in the
   Administration Manual section.

   Contractual services and goods are regulated by the procurement procedures
   included in the Administration Manual section. Financial processing may only be
   made upon confirmed correct procurement procedure and satisfactory supporting
   documents.

   Payment for contractors is regulated by their respective contacts, administered
   through the Procurement procedures. The project head must submit a request for
   payment to the FAS Procurement team, in accordance with the payment modalities
   of the contract.

   Payment for Subgrants is regulated by their respective Subgrant Agreement
   administered by the Project head. Request for payments shall be made in
   accordance with the payment modalities of the agreement and shall be accompanied
   by a statement or billing from the organization requesting the payment. The payment
   request shall be sent to the FAS finance team for further processing.

   Hospitality or “representation and entertainment” is a form of courtesy to outside
   person such as donor representatives and high-level government representatives in
                                                                                      89
CAI-Asia Center Operations Manual
Revised June 2010
    the course of business. It commonly involves payment for meals. All claims for
    hospitality must be evidence with receipts, including a written justification/purpose
    and a complete list of who participated, including both Center’s personnel and
    outside persons, and venue. All claims for hospitality must be certified by the
    Executive Director or Deputy ED. Any staff, except the Executive Director and the
    Deputy ED that plans to incur hospitality costs must request an advance to ensure
    approval prior to the hospitality event. The Executive Director and Deputy ED may
    make hospitality claims retroactively.
.
    General Guidelines on Representation

    a) The head of FAS is responsible for advising Management on policy and limits to
       be established, from time to time, in connection with representation expenses.

    b) Except for representations to be incurred by the Executive Director or Deputy
       ED, requests for representations shall be made in advance and before incurring
       the expense. A Request for Petty Cash (for amounts up to US$100 or Php5,000)
       or a Request for Cash Advance (for amounts over US$100 or over Php5,000)
       shall be put forward. On exceptional cases, a staff may incur representations
       and request reimbursement later provided that there is prior concurrence of
       approval officers.

    c) Advances shall be liquidated and cleared in accordance with the petty cash or
       cash advance liquidation requirements.

    d) Division Heads are authorized to approve advances for representations up to
       US$200. The Executive Director shall approve amounts in excess of US$200.

    e) The host should ensure that the number of other CAI-Asia staff as invited guests
       should be kept to the minimum appropriate for the occasion.

    f)   Representation expenses will not normally be reimbursable for meals and
         refreshments provided to any group consisting exclusively of CAI-Asia personnel
         or consultants employed by CAI-Asia.

    g) Expenditures for gifts will not be approved.


12.5 Subgrants

Subgrants refer to subgrant/subcontract arrangements to undertake an entire
project/program or activity on behalf of the CAI-Asia. A Subgrant is covered by a
subgrant agreement between CAI-Asia and the Subgrantee.

12.5.1 Authority and Approval Requirement on Selection of Sub-grantees

The Executive Director authorizes and approves the granting of all projects/program or
activities to Sub-grantees. It is the responsibility of the Executive Director to select and
qualify sub-grantees.

                                                                                         90
CAI-Asia Center Operations Manual
Revised June 2010
12.5.2 Detailed Procedures

1. The division manager shall produce a Sub-grant Agreement (Sub-agreement) that
   ensures the technical requirements of the main Grant Agreement are met. The Sub-
   agreement shall include among others, the roles and responsibilities of the grantee,
   the related financing, financial management and reporting.

2. The draft Sub-agreement shall be reviewed and approved by the Executive Director
   for review by other parties. The Sub-agreement shall be reviewed by the Center’s
   legal counsel to ensure that the terms and conditions are consistent with applicable
   laws and regulations. The legal counsel shall advise or recommend changes to the
   draft Sub-agreement to legally acceptable language and coordinating such changes
   to the division manager of the sponsored project/program or activity.

3. The division manager shall coordinate additional reviews with appropriate parties
   when the Sub-agreement contains non-standard language that may be in conflict
   with the Center’s policies or government regulations.

4. The division manager of sponsored project/program or activity shall secure the
   appropriate signatures of the subgrantee and shall execute or cause to be executed
   the Sub-agreement on behalf of the Center, under authority delegated by the
   Executive Director.

5. The division manager of the sponsored project/program or activity shall initiate a
   Request for Payment to FAS in accordance with the payment modalities of the Sub-
   agreement. The signed Sub-agreement document shall be attached to the Request
   for Payment. The purpose of this transaction is to insure that funds are properly
   available in the Sub-agreement and that said funds are properly reserved and
   obligated.

6. The division manger shall be responsible for monitoring and ensuring the technical
   performance of the sub-grantee and shall certify to this performance prior to the
   payment of any invoices by the FAS. The division manager shall retain the
   supporting documentation for the sub-grantee’s performance.




                                                                                    91
CAI-Asia Center Operations Manual
Revised June 2010
Chapter 13. Disbursement Procedures

13.1 Modes of Payment
Payments for the Center’s operating and project expenses should be made through the
following:

a) Checks
   • Payments for goods and services purchased locally
   • Payments for subgrants
   • Payments to consultants
   • Payments for staff advances
   • Payments for Petty Cash Replenishments

b) Telegraphic/wire transfers and Bank Debit Advices
   • Payments for goods and services purchased from foreign countries
   • Payments for staff payroll

c) Electronic payments
   • Payments to Government Trust account contributions (SSS, Philhealth, Home
      Development Mutual Fund)
   • Taxes and withholding tax remittances
   • Government trust account contributions
   • Staff cash advances
   • Remuneration of staff
   • Replenishment of Petty Cash and Revolving Funds

FAS shall use pre-numbered checks from its authorized checking accounts. As much as
practicable, payments should be made by checks. When payments are made through
telegraphic/wire transfers, bank debit advice or electronic payments, all documents
authorizing the bank to transfer the funds and the bank validated transaction form shall
be filed to the respective check voucher file.

All checks shall be accounted on a monthly basis and reconciled to the accounting
records and bank statement/passbook records. Cleared checks, including voided or
cancelled checks, should be accounted and filed in a numerical sequence. Unused and
unreleased checks should be kept secured at all times.

When an employee’s personal credit card is used, this creates an advance payment by
the employee to be reimbursed later by the Center. The credit card transaction slip,
together with the official receipt, shall be attached to the payment request form and shall
be submitted immediately to FAS for reimbursement to avoid costly financing charges.
The amount to be paid shall be based on the exchange rate used by the credit card
company as stated in the credit cardholder’s statement.




                                                                                        92
CAI-Asia Center Operations Manual
Revised June 2010
13.2 Payment Requisition
All requests for payments, other than cash advances and amounts to be taken from the
petty cash fund and revolving funds shall be covered by a duly approved Request for
Payment Form (RFP) (see Annex 32). No payment shall be made by FAS without a duly
approved RFP.

The approval limits for Request for Payments are as follows:

       Division Heads                               - up to US$2,000
       Executive Director / Deputy ED               - up to US$50,000
       Executive Director co-signed by the
        Treasurer of the Board of Trustees          - over US$50,000 up to US$150,000
       Executive Director co-signed by the
        Treasurer and the President/
        Chairman of the Board of Trustees           - over US$150,000

Recurring operating expenses which are covered by approved contracts such as rentals,
utility bills, professional fees, etc. shall be approved by the Head of FAS.

Invoices, Billing Statements, Statements of Accounts received by the Center shall be
routed to the respective division for certification that the corresponding services
performed or goods received is acceptable and that the amount claimed is in order for
payment.

A valid receipt or invoice shall show the following, among others:

•   Name of the payee or supplier
•   Date of the transaction
•   Control number reference
•   Quantity and description of the item purchased
•   Unit prices and extended totals
•   Currency
•   Total amount paid net of discounts, if any.
•   Duly signed/acknowledged by the cashier or machine validated

There should be no sign of counterfeiting or manipulations in the invoice/billing such as
erasures or other unusual markings.

The following documents shall be attached to the RPF before having this signed by the
approving parties:

Payments for goods purchased:
• Approved Purchase Order
• Supplier’s Invoice
• Supplier’s Delivery Receipt (duly acknowledged by authorized staff of the Center)

Payments for services:
• Signed Contract or Agreement
• Approved Purchase Order
                                                                                      93
CAI-Asia Center Operations Manual
Revised June 2010
•   Billing Statement or Statement of Account
•   Acceptance Memo from Authorized Center staff (as applicable)

Payments for subgrants:
• Signed Agreement
• Billing Statement or Statement of Account

The RFP, together with the supporting documents, is referred to as the RFP package.
The RFP package shall be forwarded to FAS team for payment processing.


13.3 Detailed Procedure on Processing and Reporting of Payments
Payment/release of checks shall be made once each week, every Thursdays. All
Request for Payments received up to Tuesday will be processed and paid on Thursday
the same week. RFPs received after the Tuesday cutoff will be paid on Thursday of the
next week. Exceptions to this rule are payments for expenses of urgent nature.

Due dates shall be anticipated and Request for Payments shall be forwarded to FAS in
advance to avoid delay of processing.

The procedures to be applied in the processing for payment of Request for Payments,
Request for Cash Advances and Travel Advances are as follows:

1. The Request for Payment package, Request for Cash Advance Form or Travel
   Advance Form is received by the accounting staff.

2. The Accounting Staff:
   • Stamps “Received By”, signs-off and dates the document.
   • Checks the extensions, calculations and price on the invoice.
   • Checks the contract to ensure the invoice conforms to the financial covenants of
      the contract.
   • Ensures that the services performed or goods received are accepted and the
      request for payment is properly approved.
   • Checks the invoice or billing to ensure that it has not been paid previously.

3. The Accounting Staff calls the attention of the requesting staff when exceptions are
   noted.

4. The accounting staff inputs the information on the invoice into the accounting system
   debiting the appropriate expenditure account/s and project codes (e.g. professional
   fees) and crediting the disbursement bank account with the amount of the payment.
   The accounting staff then generates and prints a Check Voucher (CV) [see Annex
   37) and attaches the RFP package, RCA or TA to the CV. The accounting staff
   signs-off the CV in the “Prepared/Posted By” section of the CV.

Checks can either be prepared internally or through an outsourced automated check
writing facility with a local bank.


                                                                                     94
CAI-Asia Center Operations Manual
Revised June 2010
Checks Prepared Internally
1. The accounting staff prepares a Check for the amount in the CV and attaches the
   printed check on top of the CV.

   When writing the check the following precautions must be taken to ensure that there
   is no opportunity provided for alterations to be made after the check has been
   signed:

   •   When inserting the amount in figures, no space must be left to enable additional
       figures to be fraudulently inserted.
   •   The full name of the payee must be stated on the check. No check shall be
       made payable to “CASH”.
   •   Except for cash advances made by Center’s staff, all checks must be “crossed”,
       “For Deposit to Payee’s Account Only”.
   •   Checks must be used in their numerical sequence.
   •   Indelible ink must be used in writing checks so that it will be difficult to make any
       unauthorized alterations after the check has been signed.
   •   If for some reason a written check is cancelled, the spoiled check must be
       VOIDED and retained/filed and accounted for.

2. The accounting staff forwards the Check and CV package to the Head of FAS for
   approval of the CV. The Head of FAS verifies the completeness and validity of all
   supporting documentation, checks that the accounting staff has performed all the
   procedures above and ensures the correctness of information indicated in the CV.
   The Head of FAS ensures that the amount is budgeted and funds are available. If in
   order, he/she approves the CV by signing the “Reviewed and Approved By” section
   on the CV.

3. The Check and CV package is routed for signing of checks in accordance with the
   check signing authority limits discussed in Section 10.1.3. Before signing, the
   signatories must examine the supporting documentations to ensure the check details
   are correct and have been authorized.

4. The signed check and PAID supporting documents will be returned to the accounting
   staff who will arrange for the check to be sent to or picked-up by the supplier and
   obtaining the corresponding payment Official Receipts.

5. After the Check is made, the CV package and all attached supporting documents
   shall be cancelled. The cancellation is evidenced by using a rubber stamp imprinted
   with the word PAID in red ink across the face of the CV, invoice and other
   documents.

Checks Prepared Through an Outsourced Automated Check Writing Facility
1. Based on the CVs received, the accounting staff prepares a Payment Instruction and
   schedule of checks to be prepared indicating the following, among others:

   •   CV reference
   •   Complete name of payee
   •   Amount
   •   Description of amount paid
                                                                                         95
CAI-Asia Center Operations Manual
Revised June 2010
   •   Total amount


2. The accounting staff forwards the payment instructions and CV packages to the
   head of FAS for approval. The head of FAS verifies the completeness and validity of
   all supporting documentation, checks that the accounting staff has performed the
   required procedures above and ensures the correctness of information indicated in
   the CVs to the Payment Instruction. The head of FAS ensures that the amount is
   budgeted and funds are available. If in order, he/she approves the CVs and
   payment instruction by signing the “Reviewed and Approved By” section.

3. The Payment Instruction and CV packages are routed for signing of in accordance
   with the signing authority limits discussed in Section 10.1.3. Before signing, the
   signatories must examine the supporting documentations to ensure the details are
   correct and have been authorized.

4. The Payment Instruction and PAID supporting documents will be returned to the
   accounting staff of finance officer who will send the duly approved Payment
   Instruction to the Bank for check preparation.

5. The bank releases the check to the supplier and obtains the corresponding payment
   Official Receipts.

6. On a regular basis, the bank will send the corresponding official receipts to Finance
   for filing purposes.

7. After the list and instruction is made, the CVs and all attached supporting documents
   shall be cancelled. The cancellation is evidenced by using a rubber stamp imprinted
   with the word PAID in red ink across the face of the CV, invoice and other
   documents.




                                                                                     96
CAI-Asia Center Operations Manual
Revised June 2010
Chapter 14. Accounting System

14.1 Brief Description of the Center’s Accounting System
The Center will maintain its records of financial transactions on a computerized
accounting system. The accounting system shall handle multi-currency reporting and is
capable of producing the standard monitoring reports and special reports, as described
in the Operations Manual and agreements with Donors. The accounting system shall
be capable of the maintaining multi-currency set of books, is easily scalable and
provides flexibility and ease in formatting of reports.

14.2 Chart of Accounts and Coding Categories
The Chart of Accounts details the different accounts to be maintained in the books and
their related account codes, type, class and other categories. The following account
numbering shall be followed:

1000 - 1999   Assets
2000 - 2999   Liabilities
3000 - 3999   Equity
4000 - 4999   Revenues
5000 - 6999   Expenses

The coding of each account will depend on the grouping of accounts that will be required
to generate specific reports, e.g. By Project, By Grant, By Activity, By Location, etc.

Project Classification
Accounts shall be coded to ensure that transactions pertaining to a specific project will
be classified in the financial records. For example, professional fees for Project “A” can
be tracked separately from professional fees for Project “B”, etc.

Grant Classification
Accounts shall be coded to ensure that transactions pertaining to a specific grant will be
classified in the financial records. For example, professional fees for Grant “A” can be
tracked separately from professional fess for Grant “B”, etc. Funds received that are not
specified to a specific grant shall be classified under “General Fund”.

Department/Section Classification
Accounts shall be coded to ensure that operating expenses for each of the different
divisions or major departments and sections (as needed) shall be tracked separately.

Activities
Accounts shall also be coded to ensure that financial records for each of the major
activities of the center that may include one or more projects will also be generated.

Geographic Location
When necessary, financial transactions will need to be generated per major geographic
locations. This shall also be taken into consideration.

                                                                                       97
CAI-Asia Center Operations Manual
Revised June 2010
The Chart of Accounts and grouping of accounts or Sub Accounts/Segments in the
Solomon accounting system can be found on Annex 38. Subsequent changes to the
Chart of Accounts and Sub Accounts/Segments in Solomon that are required to
generate specific reports shall be approved by the head of FAS.

14.3 Filing and Retention of Financial Records
Financial records (both paper files and electronic files and documentation) shall be
maintained and filed by the Center, by its outsourced service providers (such as the
outsourced Accounting Firm, HR and payroll), and by its sub-grantees. ‘Permanent’ files
are retained to perpetuity while ‘Current’ files will only be maintained for a shorter period
based on regulatory requirements or specific Grant requirements.

The outsourced services providers and sub-grantees shall be required to follow the
Centers policies in Filing and Records management. (see Chapter 5.2)

14.3.1 Permanent Files

Permanent files shall be retained to perpetuity and shall be stored in a secured location
within the Center’s office premises. Copy of these files may be made and retained at a
secured off-site location.

Among others, the following are considered Permanent Files:

•   Incorporation documents such as the certificate from the Securities and Exchange
    Commission, Articles of Incorporation, By-Laws and all amendments to these
    documents.
•   Payroll/remuneration records
•   Agreements with Donor organizations
•   Major contracts
•   Registration documents and permits
•   Documents supporting recorded major fixed assets
•   Annual reports and budgets


14.3.2 Current Files

Current files are the records and documents that serve of little benefit in the future by
retaining to perpetuity. Normally, these files and records will be retained to comply with
certain regulatory requirements such as by the Bureau of Internal Revenue (BIR) which
requires that all accounting records be retained up to three (3) years.

As a policy, all Current Files shall be retained for a period of five (5) years after the
financial closure of the projects. However, certain Current Files may need to be retained
longer based on the Agreements with certain Donors.

Current Files for the last three (3) years shall be retained within the Center’s office
premises for easy reference. Older files maybe sent to an off-site storage.

Among others, the following are considered Current Files:
                                                                                          98
CAI-Asia Center Operations Manual
Revised June 2010
•   General Ledger
•   General Journal
•   Accounts Payable Register
•   Cash Disbursement Register
•   Cash Receipts Register
•   Trial Balances
•   Check Vouchers (with complete supporting documents)
•   Journal Vouchers (with complete supporting documents)
•   Paid Checks and Bank Debit Advices
•   Annually renewed registrations and permits
•   Interim reports

Accounting records shall be filed as follows:

Check Vouchers (CV)                             by reference number sequence
Journal Vouchers (JV)                           by month, by JV number
Paid Checks (including spoiled checks)          by check number sequence
Bank Debit Advices                              filed to specific paid CV

14.3.3 Documents Requested by Donors

All original receipts, invoices, statements, and other supporting documents shall be
retained by the Center in accordance with the policies mentioned above. When
required, extra copies can be reproduced or photocopied.

When an agreement with a Donor requires that the Center shall submit all original
receipts, invoices, statements and other third-party source documents to the Donor, the
Center shall make copies of each of these documents for the Center’s internal records
and files. A notation on the Check Vouchers shall indicate that the original documents
are being submitted to the Donor in accordance with the Agreement with the Donor.

Conversely, if acceptable to the Donor, only the photocopy of the original documents
shall be submitted to the Donor with “Certified True Copy” notation duly signed by the
Head of FAS and the originals are retained with the Company records and files.




                                                                                    99
CAI-Asia Center Operations Manual
Revised June 2010
Chapter 15. Budget

15.1 General Principles
Budgets are monetary reflections of planned activities, and represent the financial
framework in which the organization operates. The Center’s budgets are highly
significant tools for financial planning, monitoring and control. It is therefore crucial that
Center Management, the Projects, and the Finance and Administrative Section are
involved in the development and maintenance of budgets. As the budget will be
implemented by project staff, it is important that project managers, division directors and
officers are directly involved in the preparation and monitoring of and reporting the
budget.

15.2 Annual Budget
The preparation of annual budgets shall commence at least three (3) months before the
end of the Calendar/Fiscal Year. Annual budgets shall be presented for approval by the
BOT one (1) month before the start of the Calendar Year.

Budgets shall be reviewed every six (6) months and changes, if any, shall be
recommended and proposed. Major changes shall be approved by the BOT.

15.3 Operating Expenses Budget
The Operating Expense Budget (OEB) is part of the annual budget and is established on
a calendar year/fiscal year basis. It covers the general running of the Center, including
its core functions and will generally be funded from Core funds. The OEB comprises
mainly of staff remunerations and general office operating expenses.

Based on local requirements, in order for the Center to avail of certain tax benefits, it has
to limit its administrative expenses to 30% of the total donations and income for the
taxable year. This should be taken into consideration in the preparation of the OEB and
the actual expenses shall likewise be monitored closely on a monthly basis to ensure
that the Center complies with this requirement.

The head of the FAS is responsible for preparation of the OEB and in ensuring that
expenditures remain within the approved appropriations and are incurred for the
purposes for which they were approved. The head of FAS monitors the use of OEB and
decides on the disbursements to be made including the allocation of operating expenses
to specific projects or grants.

The annual OEB must not run into deficit unless approved by the Executive Director,
income must therefore be monitored closely, and cost saving measures initiated, should
the income forecast be lower than the initial budget. A detailed report analyzing the
progress of the OEB is produced by FAS and reported to the Executive Director on a
monthly basis. Additional information on the status of the budget can be sought at any
time.


                                                                                         100
CAI-Asia Center Operations Manual
Revised June 2010
The OEB shall use the following standard expense accounts, among others:

•   Staff remunerations and benefits
•   Professional fees
•   Rental and utilities
•   Transportation and travel
•   Office supplies and production costs
•   Miscellaneous

For reporting purposes, OEB is reallocated to the different projects or grants based on a
reasonable allocation rate.


15.4 Project Budget
Individual project budgets shall be prepared covering the entire duration of the project
which may be longer than the annual budget period. The project budget covering period
of the annual budget shall be prepared, derived from the total project budget. Project
budget comprises mainly of professional fees, travel and transportation expenses,
workshop, expendable equipment, supplies and production costs, and allocated
overhead costs.

As a policy, a minimum of 15% of the Project revenues should be budgeted as a general
fund to cover administrative expenses.

Project budgets shall be prepared in the currency of the agreement and in USD. FAS
shall maintain the individual project budgets separately as well as a consolidated budget
for all projects.

The Executive Director, in consultation with the Division Heads, shall be responsible for
the preparation of project budgets. Finance shall be responsible for the consolidation of
the overall budget and in ensuring the accuracy, reasonableness and consistency of
budget items to the business plan.

Project budgets shall also use the standard expense accounts.

Project Officers responsible for budgets shall closely monitor the budgets in order to
detect potential problems and to take the necessary actions to ensure the smooth
financial operation of the project.

In order to assist the project officers in budget management, a fund status report is
generated by FAS on a monthly basis. The report includes detailed expenditures for the
month, a detailed list of the unliquidated obligations, a detailed list of advances, as well
as comments and questions from FAS. Detailed information can also be viewed
electronically at any time through the reporting facility of the financial system, or
requested from the FAS finance team as required.

There are three main issues that should be given priority when monitoring budgets;

•   The overall budget frame must not be overspent.
                                                                                        101
CAI-Asia Center Operations Manual
Revised June 2010
•      The project’s cash balance must always be positive.
•      Budget lines should not be negative.

In addition, special attention should be given to possible variations when the donor
agreement is in a value other than USD. This is also a concern if significant budget
items are based on estimates in other currencies.

Contingencies should not be used until towards the end of the project. Their early use
needs to be justified by the Project Officer or Division Head.

All Projects shall be reviewed and approved by the Executive Director however projects
with budget of more than US$50,000 shall be submitted to the Board for review as
follows:

(i)       more than US$50,000.00 and less than US$500,000.00, on a no-objection basis,
          and
(ii)      equal to or more than US$500,000.00, for Board approval.



15.5 Costing Principles and Procedures
The detailed project budget is prepared from the Project Budget Drafting Form (see
Annex 39) which specifies inputs such as personnel, activities and facilities needed for
each year. The costs of the inputs are calculated and recorded on the Project Budget
Drafting Form following the Center’s costing principles and procedures as discussed
below.

Project inputs must always be budgeted in USD. If major elements of the budget are
developed based on other currencies, the budget needs to be revisited regularly in order
to monitor the effect of possible currency fluctuations.

To calculate input costs over the life of the project, inflation should be taken into
consideration and added to the assessed cost of inputs for subsequent years. Inflation
can normally be calculated at 5% per year. Advice may be sought from FAS on other
possible approaches.

For details regarding costing of consultancies and other services and standard
equipment, consultation with FAS personnel or Procurement team may be sought.

The contingency line in the budget provides a safety net for, inter alia, fluctuations in
currency which may affect the project, especially as the donor and the related currency
are usually not known at the proposal stage. A full 10% of the total project cost should
be budgeted for contingency, subject to consultations with the donor.

Overhead cost covering the cost of the Center in providing administrative services for
executing the project (e.g., mobilizing inputs, monitoring and reporting), shall be added
equivalent to a minimum of 15% of the total project costs including contingency. This
rate shall be updated on a regular basis based on reasonable and validated
assumptions.

                                                                                     102
CAI-Asia Center Operations Manual
Revised June 2010
The budget must be developed for the entire duration of the project, divided into each
year of implementation. The total project budget shall reconcile with the approved
budget (see Section 14.2).

A detailed breakdown of the main budget lines covering individual activities shall be
required for budget monitoring and reporting purposes.

For project budget purposes, the CAI-Asia Center charges remuneration costs that
include the gross basic staff remuneration, social costs and overhead. Refer to Annex
45 for the Method in Computing Charge Out Rates.

Other methods of computing charge out rate as required by donors shall be evaluated to
ensure that Center staff costs and overhead are recovered.

15.6 Budget Revision
Budget Revisions may be required if there are significant changes in project activity or
changes in the cost estimates. The revisions should ideally be initiated before the
various budget lines are over spent. A proposed budget revision should be carefully
prepared and documented to ensure that the justification for the proposed revision is in
line with the objectives and activities of the project, the information provided is complete,
and that the figures and additions are correct. The donor agreement should be
consulted in order to clarify if donor approval is required prior to a budget revision.

All budgeted revisions must be approved by Head of FAS and Executive Director after
the following procedures have been followed. Revisions involving Project Budgets shall
also require the approval of the Donor.

The Project Division is responsible for initiating budget revisions when necessary and for
clarifying donor information requirements as regards budget revisions. The project
officer should complete a Project Budget Revision Form (see Annex 40). Budget
revision involving significant change to the project allocations or phasing of expenditure
should be discussed with and approved by the Executive Director. Revisions involving
major changes to the overall budget or scope of the project require the approval of the
Board of Trustees. A major change is a change in the budget or scope of the project by
at least 25%.

Any increase or decrease in the project total budget requires written approval from the
donor.

Once a budget revision is complete and the revision form approved, the Project Officer
submits the Revision Form to the Finance team for processing into the Center’s
Accounting system.

The FAS Finance Team will check the details of the revision and, after entry into the
system, send a Project Fund Status Report (see Annex 41) to the Project Officer within
one week of receiving the revision.



                                                                                         103
CAI-Asia Center Operations Manual
Revised June 2010
Chapter 16. Financial Reporting

16.1 General Principles
FAS is responsible for reconciling and closing of the monthly accounts and year-end
accounts. Accounts are any financial data appropriately approved for entry into the
Center’s overall accounts and recorded in the Center’s financial system.

Financial statements shall be prepared in accordance with the accrual basis or
accounting discussed in Chapter 8.9.
The functional currency of the Center shall be determined based on the currency of its
primary economic environment or the currency of the environment which the Center
primarily generates and expends cash.

The Center’s transactions will be recorded in their original currency and translated into
US Dollars (USD) and Philippine Pesos for reporting purposes.

To comply with local taxation requirements, The Center shall also maintain its books of
accounts in Philippine Pesos.

In the closing of accounts and preparation of financial reports, FAS must comply with
both Internal Reporting Standards and International Accounting and Reporting
Standards.

A summary of the significant accounting policies of the CAI-Asia Center can be found on
Annex 38-a.

16.2 Closing of Accounts
16.2.1 Monthly Closing

Books are closed no later than five (5) days from the close of the present month. After
the cutoff, FAS shall cease to enter any transaction for the preceding month and prepare
the monthly trial balance, bank reconciliations, financial and other reports for the
approval of the Head of FAS. Following approval, the monthly reports are filed together
with other relevant month-end documentation.

Hard copies of the month-end reports must be certified by the Head of FAS and filed.

16.2.2 Quarterly Closing

When need arises, quarterly reports will be done to compile the quarter's operating
statistics and results.

16.2.3 Yearly Closing

The Center’s accounts are closed annually and income and expenditure must be
reported as accurately as possible.

                                                                                       104
CAI-Asia Center Operations Manual
Revised June 2010
Before the end of each year, FAS will issue an instruction on the closing procedures and
deadlines to be achieved. These instructions must be strictly adhered to.

Due care must be taken in relation to unliquidated obligations ensuring that the
expenditures for the calendar year that has passed are not under or overstated. It is the
responsibility of the project staff to review the November fund status report and report to
FAS, before 15 December, any outstanding obligation recorded incorrectly, to ensure
accuracy in the final yearly account.

Outstanding obligations may include salaries for consultants, outstanding payments for
contracts and purchase orders, rent, utilities and communication charges, and
outstanding entitlements to staff.

Every effort must be made to clear all outstanding commitments and advances.
Commitments that cannot be liquidated before 31 December must be justified to FAS
and carried forward to the following year after having been checked of correctness and
validity.

A list of all outstanding obligations must be produced and certified as part of the yearend
documentation. In addition to the above, the following reports must be produced,
certified and filed as hardcopies, at the end of each year.

16.3 Financial Monitoring Reports
As a minimum, the following reports shall form part of the financial reporting
requirements of the Center on monthly and annual basis.

•   Project Fund Status Report
•   Income Statement
•   Balance Sheet
•   Statement of Cash Flows
•   Specific Project Progress Report
•   Specific Project Completion Report

16.3.1 Project Fund Status Report

The Project Fund Status Report (PFSR) (see Annex 41) shall be issued per month, per
quarter and/or per year. It gives the complete summary of all transactions registered on
the particular project. Definition of the report sections are as follows:

Approved Budget
The approved budget is indicated in its original currency and the equivalent in USD.
Whilst the amounts for each budget line may vary because of budget revisions, the total
is a fixed amount and will not normally vary through the lifetime of the project, unless
additional funding is approved, or if the donor conditions change. However in the case
where there are significant fluctuations between the currency in the agreement and
USD, resulting in less available USD, the approved budget in USD must be adjusted
accordingly to avoid funding gap at the end of the project.

Obligations
                                                                                       105
CAI-Asia Center Operations Manual
Revised June 2010
Obligations are contracts for committed expenditures entered into by the Center. Their
value is recorded in the system in the currency of obligation. However for reporting
purposes the amount of the obligation is converted to USD on the day of the report.
Therefore, the amount of the obligation may vary from report to report. Project Officers
can check the value and currency of obligations, the relevant exchange rates and the
USD equivalent values on the system as any time.

Disbursement Month-to-Date
The amount disbursed in the month of the report.

Disbursement Project-to-Date
Cumulative during the life of the project

Undisbursed Commitments
This column shows the commitments made but not disbursed yet. Some of these
commitments may be multi-year and should be reviewed every year-end to establish
their validity for the coming years.

Total Expenditure
Covers both disbursement to date and unliquidated commitments. The amount of the
disbursement is the USD value on the date of payment. Therefore, if the disbursement
relates to obligations in a foreign currency, the amount may differ from the dollar amount
shown for the unliquidated commitments at an earlier date.

Balance
This column represents the difference between the total expenditure and the total
budget. None of the individual budget lines should be in the negative and care should
be taken that expenditures have not been allocated to budget lines without a budget. In
those cases, FAS should be alerted and a budget revision should be initiated by the
Project Officer.

Cash Advances
This column provides information about outstanding advances such as an imprest
account, travel advances and other eligible advances. Care should be taken to monitor
this amount to ensure that it does not continue to grow, and that outstanding advances
are cleared within the stipulated time frames.

Cash Balance
The total budget must be viewed in relation to the total funds received. The total amount
received should never be less than the total expenditures.

16.3.2 Income Statement

The Income Statement (see Annex 42) is a statement of the results of operations of the
Center for a certain period. It measures the progress of the Center in carrying out its
objectives. The Income Statement shall be issued monthly, quarterly and annually. It
shall give the complete summary of all revenues and expenses for each project and
aggregate totals.

16.3.3 Balance Sheet

                                                                                      106
CAI-Asia Center Operations Manual
Revised June 2010
The Balance Sheet (see Annex 39) is a statement of the financial position or condition of
the Center and specific grant funds as of a given date. It shows the assets of the
Center, together with the fund balance or equity and interest of creditors. The balance
sheet shall be prepared as of each end of the month and year.

16.3.4 Statement of Cash Flows

The Cash Flow Statement (See Annex 44) shows the sources and applications of cash
for a certain period, as well as the cash balance as of the end of such period. Like the
income statement, Statement of Cash Flows shall be issued monthly, quarterly and
annually. It shall give the complete summary of the sources and uses of funds for a
given period.

16.3.5 Specific Project Progress Report

The Specific Project Progress Report is a narrative and quantitative report on the
detailed progress status of the project that shall be issued monthly, quarterly and
annually.

16.3.6 Specific Project Completion Report

The Specific Project Completion Report is a narrative report on the detailed completion
status of the project that shall be issued upon completion of the project.




                                                                                     107
CAI-Asia Center Operations Manual
Revised June 2010
Chapter 17. Audit

17.1 Annual Independent Financial Audit
An independent external audit of the finances, financial administration, and operations of
the Center shall be undertaken annually in accordance with generally accepted
international auditing practices and standards. The annual audit will serve two
purposes. It primarily represents a control function for the Board of Trustees and the
donors, by verifying beyond reasonable doubt that the accounts represents a true and
fair picture of the Center’s financial status. The audit should in addition serve as a guide
and reference to good accounting practices and the auditor should function as an
advisor in support of the Center’s continuous efforts to ensure sound financial
management. The annual audited financial statements and the annual auditor’s report
are addressed to the Board of Trustees. The audited financial statements shall be
included in the Annual Report.

A separate special audit addressing a specific purpose may also be commissioned when
a need arises.

17.1.1 Comprehensive Audit Scope

The audit shall include a review of the Center’s annual financial statements and
underlying books of accounts and records, review of the internal accounting and
operations, a review of the investment activities undertaken by the asset manager of the
Center, and such other financial and administration practices as the auditor believes are
warranted. The audit shall also include a review of the adequacy of the Center’s internal
controls.

The auditor must have unlimited access to all information requested, for them to issue a
complete statement of the Board of Trustees. The Board, the Officers and Staff of the
Center, the outsourced service providers, commercial banks, the recipients of financial
support from the Center, and all those directly associated with the Center shall
collaborate fully and provide all documents and records to support the annual financial
audit.

17.1.2 Timing and Completion of Audits

The audit shall be completed in time for the preparation of the Annual Report and
compliance with Government reportorial requirements, such as the Bureau of Internal
Revenue and Securities and Exchange Commission. As a rule, the audit shall be
completed within the quarter immediately after the yearend.

17.1.3 Audit Reports

The auditor shall issue the following:

•   Audited Financial Statements
•   Audit Report
                                                                                        108
CAI-Asia Center Operations Manual
Revised June 2010
•   Management Letter

FAS is responsible for drawing up the terms of reference for the audit each year
ensuring completion of these reports.

17.2 External Auditor
The external auditor shall be recommended by the Executive Director and shall be
appointed by the Board of Trustees. The identification of the auditing firm must follow
the Center’s procurement guidelines. However, it may be decided to retain the same
auditor for a number of years, provided that competitiveness is demonstrated. A
reputable firm must carry-out the audit. Audit companies from outside the region may be
solicited.

17.2.1 Criteria for Selection of External Auditor

The External Auditor must be a reputable Auditing Firm. Members of the assigned audit
team must not be related or affiliated to any officers or directors of the Center.

17.3 Special Audits Required for Specific Grants
The Donor may require a separate or special audit of a certain grant or project. The
audit scope, objective and timing of the audit shall be discussed and approved by the
party requiring the audit. The cost of the audit shall generally form part of the Project
costs and should be clearly approved in the agreement with the donor.

17.4 Special Audits Required for Sub-grants
The Center may also require a separate or special audit of a subgrant. The audit scope,
objective and timing of the audit shall be discussed and approved by the Center. The
cost of the audit shall generally form part of the Project costs.

17.5 Internal Audit
An internal auditor may be engaged to perform independent reviews of some functional
areas or projects of the Center as deemed necessary by the Executive Director. The
internal audit function shall cover both financial and operational audits.

The internal auditor must maintain a detailed record of all audit work performed. The
internal auditor reports directly to the Executive Director and the BOT.

The findings must be discussed with the project or Center personnel whose activities
were audited and the results of those discussions will be included in the final report to be
submitted to the Executive Director and BOT.




                                                                                        109
CAI-Asia Center Operations Manual
Revised June 2010
                                                  ANNEXES

                          Annex 1.            Sample membership application form


             Application for Membership in the Clean Air Initiative for Asian Cities Center, Inc. (CAI-Asia
                                                      Center)

             Please email application form to the Executive Director (cornie.huizenga@cai-asia.org) with copy
                             to the Deputy Executive Director (sophie.punte@cai-asia.org).


Country:

Company/
            1
Association:

Website:

Company/Assn.
                2
Representative:

Position/Title:

Postal Address:

Email Address:

Telephone:

Fax:
Reason/s for interest in becoming a member of the CAI-Asia Center




Short description of the opportunities for Clean Air Initiative for Asian Cities (CAI-Asia) Center and
the type of expertise that your organization can contribute.



Our company or association would like to apply for:

           Ο Voting Membership with a contribution of US$____________for a 12-month period starting from
              _____________.
           Ο Non-Voting Membership with a contribution of US$__________ for a 12-month period
             starting from _____________.



                                                            ________________________________
                                                        Signature of Representative and Date Signed



1
    Kindly attach information (e.g., profile, brochure, annual report) about your company or association.
2
    Please attach copy of Board Resolution constituting and appointing the nominee or representative of the Company to
            the CAI-Asia Center. Any change in the Company nominee or representative should be evidenced by a Board
            Resolution authorizing the substitution.
                                                                                                                  -1-
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
            Annex 2.                   Sample Travel Authorization and Travel Advance Form

              CAI-ASIA Center

                                                          TRAVEL AUTHORIZATION (TA)

Requestor:                                                         Staff No.:                    Division:                       Date:


Purpose of Travel:


Travel Information:
          Date                          Particulars                                  Class       Date of Flight                   From / To




Cash Advance Required:
                        Type of Expense                                          No. of Days Rate per Day Currency                        Amount
Hotel Accomodation                                                                                             US$                                     -
Transportation Expenses                                                                                                                                -
Meals / Daily Subsistence Allowance                                                                                                                    -
Miscellaneous (attach details when necessary):                                                                                                         -


                                                                                                                                                       -
                                                                                                                                                       -
                                                                                                                                                       -
                                                                                                   Total >>>                                           -

Airfare Ticket/s (attach invoice or statement or copy of ticket, if already available)                                     US$
                                                  Total Advances Including Cost of Airfare Tickets                         US$                         -
Note: This form shall be used for requests for official travels and should be prepared instead of a Request for Payment Form. The amount shall be
settled/liquidated immediately and no later than 30 days from utilization of the advance. Unused cash advances should be returned immediately. The Center
is authorized to deduct in full from the nearest payroll if a liquidation report for the advance is not submitted within 30 days from date of receipt hereof.



Requested by / Amount Received by / Date Received:                                               Approved by:



Signature Over Printed Name                                                                      Division Head / Executive Director




                                                                                                                                                      -2-
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                   Annex 3.        Leave Form


              CAI-
              ASIA
              Center                                                                                  06-10-
                                                                                             LF No.
                                                                                                       001
              Unit 343, Mile Long Bldg.
              Amorsolo St., Makati City
                                                 LEAVE FORM

 Requestor:                                   Staff No.:        Division:                   Date:

 Type of Leave:

                  Vacation Leave                   Sick Leave

                      Date From                            Date to                   No. Of Hours




 Reason:




 Requested by:                                                  Approved by:



 Signature Over Printed Name                                    Division Head/Executive Director




                                                                                           -3-
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                Annex 4.        Sample Back-to-the-Office Report (BTOR)


               Clean Air Initiative for Asian Cities Center      MEMORANDUM
               (CAI-Asia Center)




I.      Introduction
                                                                                [date]

To:

Through:

From:

Subject:         —BTOR for [-----------------------]

II.     Mission Findings

III.    Conclusions and Recommendations

Annexes:
Itinerary of travel
List of Persons Met




*Maximum length of the report is 3 pages excluding attachments




                                                                          -4-
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
             Annex 5.         Sample Terms of Reference for Staff Recruitment


Position Title        Technical Officer/Project Officer
Division
Type of
appointment
Responsibilities and Scope of Work:

The Technical Officer reports to the Division Manager of [user division name]. Specific tasks
include, but not limited to:

        Coordinate the conduct of activities of the CAI-Asia Center related to the nature of work
        of the Division;
        Provide inputs in the formulation and updating of reports on AQM;
        Assist in the development and delivery of AQM training;
        Oversee implementation of CAI-Asia Center pilot projects;
        Formulate concept proposals for piloting AQM initiatives;
        Prepare progress reports;
        Liaise with the CAI-Asia Partnership and CAI-Asia Center members on air quality
        management and related activities of both organizations;
        Perform other tasks within reasonable scope deemed appropriate and requested by the
        Division Manager and Executive Director.

Qualifications:
   • Relevant degree at post graduate level
   • At least 5 years professional experience and preferably in air quality management
   • Demonstrated familiarity with the Asian region, with respect to its hydraulic and
        geographic features as well as with respect to its local administration structures and local
        governments
   • Demonstrated project management experience
   • Ability to work in a team, and communicate effectively with different disciplines
   • Ability and readiness to communicate and work together with local governments, private
        sector, NGOs, academe and donor organizations
   • High commitment to the causes of clean air and air quality management and regional
        economic development
   • Creativity and resourcefulness to resolve problems and overcome conflicts



Position Title        Office Assistant
Division
Responsibilities and Scope of Work:

The Office Assistant reports to the Division Manager of [user division name]. Specific tasks
include, but not limited to:

1. Assist in the implementation of the CAI-Asia Center Operations Manual pertaining to [
   records management, procurement, supplies and inventory management, recruitment, etc];
2. Assist in the preparation of reports (quarterly, annual) especially those related to
   administration;
3. Assist in the preparation and evaluation of tender documents for bulk purchases; monitor
   procurement procedures; purchase documentation for completeness and correctness for

                                                                                                -5-
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
   approval of the Division Manager, FAS and subsequent payment;
4. Assist in the implementation of the CAI-Asia Center staff recruitment policies and procedures,
   interview job applicants as requested, review /amend job descriptions;
5. Undertake record keeping and filing;
6. Provide logistics and secretariat support during CAI-Partnership and CAI-Asia Center
   membership meetings; and
7. Perform other tasks within reasonable scope deemed appropriate and requested by the
   Division Manager and Executive Director.

Qualifications:
        Bachelor’s degree in a related subject;
        Computer Literate
        Minimum of 3 years related work experience
        Working knowledge of administrative procedures and guidelines
        Training experience related to the job
        Good communication skills




                                                                                            -6-
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
      Annex 6.       Criteria for Evaluation and Selection of CAI-Asia Center Staff



 Staff Levels         Evaluation Criteria


 Technical            Academic background
                      Experience in AQM in Asia
                      Experience in providing training

                      General:
                      Organization and planning skills
                      Leadership/Management Skills
                      Strong Interpersonal and Communication Skills
                      Highly developed computer literacy skills
                      Ability to work effectively as part of a team

 Administrative       Academic background
                      Experience in office administration
                      Experience in budget planning and financial management

                      General:
                      Organization and planning skills
                      Leadership/Management Skills
                      Strong interpersonal and communication skills
                      Highly developed computer literacy skills
                      Ability to work effectively as part of a team




                                                                                      -7-
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                         Annex 7.       Sample Employment Contract




               Clean Air Initiative for Asian Cities (CAI-Asia) Center


                                    Employment Contract

This contract of employment is entered into between the Clean Air Initiative for Asian Cities (CAI-
Asia) Center, Inc. (“the Employer”) and [___________] (“the Employee”) under the terms and conditions
of employment below:


 1.   Commencement of         Effective from [____________] for a fixed term contract for a period of
      Employment              [________] years or until terminated as set our in Clause Error!
                              Reference source not found..

 2.   Position and            The Employee shall be employed in the capacity of [ _______ ]
      Division/ Unit
      Employed

 3.   Place of Work           The place of Work shall be the Office of the CAI-Asia Center in Manila,
                              Philippines. By signing this contract employees indicate their willingness
                              to take part in Mission travel in and outside the Philippines as requested
                              by Management of the CAI-Asia Center

 4.   Hours of Work           Working hours are 8 hours per day Mondays to Fridays. Core working
                              hours are from 9.00 am to 17.00 pm, with one hour lunch break.

 5.   Duties and              The duties and responsibilities are set out in Schedule "A" annexed
      Responsibilities        hereto and form part of this agreement. These duties and responsibilities
                              may be amended from time to time in the sole discretion of the
                              Employer, subject to formal notification of the same being provided to
                              the Employee.

                              The Employee will take instructions from the [ _________ ]

 6.   Performance of the      The Employee shall work full time and shall diligently and effectively
      Employee                perform his/her duties and responsibilities. The Employer shall conduct
                              periodic evaluation of the performance of the Employee in line with the
                              performance evaluation policy outlined Section 6.2.3 of the CAI-Asia
                              Center, Operations Manual. An evaluation of the performance of the
                              Employee will be conducted after 9 months with the objective to review
                              the duties and responsibilities of the Employee, especially vis-à-vis the
                              Executive Director.

 7.   Contractual Ethics      The Employer requires that the Employee observe high ethics and
                              adhere to its policies on Anti-Corruption (See Section 2.12 of the CAI-
                              Asia Center Operations Manual) and Harassment. (See Section 6.7 of
                              the CAI-Asia Center Operations Manual). No fees, gratuities, rebates,
                              gifts, commissions or other payments, other than those shown in this
                              Contract have been given or received in connection with the selection
                              process or in the Contract’s execution.
                                                                                             -8-
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
 8.    Compensation,           The Employee, during the term of his employment, shall be paid a base
       Benefits and            salary of [ __________ ] per month, less applicable statutory deductions.
       Payment                 In addition, the Employee is entitled to receive benefits in accordance
                               with the Employer's standard benefit package, including leave benefits,
                               as detailed in the CAI-Asia Center Operations Manual and which are
                               summarized in Schedule “B”. Schedule “C” specifies the deductions and
                               monetary benefits applicable to this contract. An annual review of the
                               base salary levels and benefits for CAI-Asia Center staff is conducted by
                               the Remuneration Committee established by the Board of Trustees of
                               the CAI-Asia Center. Any changes proposed by the Remuneration
                               Committee and approved by the Board of Trustees will be documented
                               in the CAI-Asia Center Operations Manual. Schedule “C” shall
                               accordingly be amended and countersigned by both parties.

                               The CAI-Asia Center pays remuneration on a monthly interval.

 9.    Advances                No cash advance on the monthly remuneration shall be allowed.
                               Advances are however allowed on authorized travel as per approved
                               travel authority.

 10.   Insurance               Apart from the insurance payments, compulsory under Philippines Law,
                               the Employee shall take out his/her own insurance coverage. Travel
                               insurance shall be provided on authorized CAI-Asia Center official
                               business by the CAI-Asia Center.

 11.   Intellectual Property   The Employer shall own the rights and titles to materials constituting
                               intellectual property that will be generated in the course of the
                               Employee’s performance of his/her duties and responsibilities, which
                               include, but are not limited to copyrights.

                               The Employee shall ensure that goods and services procured from the
                               Employers’ funds or used by the Employee in carrying out his/her duties
                               and responsibilities do not violate or infringe on any industrial property or
                               intellectual property right or any third party claim. The Employee shall
                               indemnify the Employer from and against any and all claims, liabilities,
                               obligations, losses, damages, penalties, actions, suits, proceedings,
                               demands, costs, expenses, and disbursements that may be imposed on,
                               incurred by, or asserted against the Employer for actions related to the
                               discharge of the Employee’s duties and responsibilities and includes
                               infringing or allegedly infringing copyright, trademark, patent, or other
                               protected right.

 12.   Public Statement        The Employee shall act discretely and refrain from making
       and Commitment          public statements about the Services or any CAI-Asia
                               Center projects without the prior approval of the CAI-Asia
                               Center’s Executive Director. (See additional guidelines on
                               Public Relations in Section 4.11.1 of the CAI-Asia Center
                               Operations Manual). The Employee has no authority to
                               commit the CAI-Asia Center in any capacity, beyond the
                               authority levels indicated in the CAI-Asia Center
                               Operations Manual and the attached duties and
                               responsibilities (Schedule “A”), and shall make this clear
                               as circumstances warrant. The Employee should refrain
                               from any political activity in the discharge of his/her duties
                                                                                           -9-
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                            and responsibilities in the country of during the term of this
                            Contract.

 13.   Disclosure of        All materials produced or acquired under the terms of the contract shall
       Information          remain the property of the Employer. Furthermore, the Employer shall
                            retain the exclusive right to publish or disseminate reports arising from
                            such materials. (See additional guidelines on disclosure in Section
                            4.11.2 of the -Asia Center Operations Manual.

 14.   Disability or        The Employer’s engagement of the Employee is conditional upon
       Incompetence of      confirmation that he/she is healthy and without physical or mental
       the Employee         disability that may interfere with performing the duties and
                            responsibilities. The Employee shall provide a medical certificate or
                            other evidence as the CAI-Asia Center may reasonably require. If at any
                            time in the Employer’s opinion, whether for reasons of health or
                            otherwise, the Employee is unable to perform or to complete the
                            Services adequately, the Employer may terminate this Contract.

 15.   Notices and          Any notice or request required or permitted under this Contract shall be
       Request              in writing. Such notice or request shall be deemed to be fully given or
                            made when it is delivered by hand, mail, or fax to the intended party.
                            The authorized party under this Contract for the Employer is the
                            Executive Director and the Employee.

 16.   Delays               No failure or delay on the part of the CAI-Asia Center in exercising any
                            power or right under this Contract shall operate as a waiver of that
                            power or right, nor shall any single or partial exercise of such power or
                            right preclude any other or further exercise or any other power or right
                            under this Contract.

 17.   Inspection and       The Employee agrees to allow the Employer or its authorized
       Audit                representative to inspect and audit any accounts, documents, and
                            records relating to this Contract.

 18.   Settlement of        a. The Employee agrees that avoidance or early resolution of disputes is
       Disputes                crucial for smoothly executing this Contract. Each party should settle
                               amicably all disputes arising out of or connected with this Contract or
                               its interpretation through the following procedure: each party’s
                               authorized representative will examine the matter(s) in dispute and
                               consider available options to resolve such dispute. The parties will
                               seek agreement on the most reasonable option to resolve the dispute
                               and act appropriately to that end.
                            b. Any dispute or difference arising out of this Contract or in connection
                               with it which cannot be amicably settled between the parties under (a)
                               above shall be finally settled under the Rules of Arbitration of the
                               International Chamber of Commerce by one or more arbitrators
                               appointed under the said Rules. The arbitration shall take place in
                               Manila, Philippines. The resulting award shall be final and binding on
                               the parties and shall replace other remedies. The language of
                               arbitration shall be English and each party shall bear its own costs.

 19.   Termination of       The Employer may terminate the employment of the Employee at any
       Employment           time: (a) for just cause as defined pursuant to the Labor Code of the
       Contract             Philippines and as discussed in Section 6.8 of the CAI-Asia Center
                            Operations Manual, in which case the Employee is not entitled to any
                            advance notice of termination or compensation in lieu of notice; and (b)
                                                                                          - 10 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                              without just cause, in which case the Employer shall provide the
                              Employee with advance notice of termination of three months [or
                              compensation in lieu of notice equal to 3 months pay]. In case the
                              Employee decides to terminate the contract prematurely, a notice of two
                              months will be required unless otherwise agreed upon with the
                              employer.


The Employee acknowledges that the Employee has read, understood and accepts the
provisions of this Agreement.


IN WITNESS WHEREOF, this Contract of Employment has been duly executed by the parties
on the date first set forth below:

 Date:                                                  Date:

 On behalf of the CAI-Asia Center:                      Employee:

 __________________________________                     __________________________________
 Executive Director




                                                                                         - 11 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                       Annex 8.      Sample Staff Performance Review Form




               CAI-Asia Center Staff Performance Review Form

Employee Information
Employee Name:                                                 Date:
Job title:
Division:
Review Period:                    To:
               Rating                    Poor        Fair      Satisfactory   Good   Excellent
                                          (1)        (2)            (3)        (4)      (5)

Job Knowledge
Comments:

Work Quality
Comments:

Initiative
Comments:

Communication/Listening skills
Comments:

Dependability
Comments:

Efficiency
Comments:

Overall Rating (average the rating numbers above):



Evaluation
Additional Comments:




Goals (as agreed by employee and manager):




                                                                                     - 12 -
    CAI-Asia Center Operations Manual: ANNEXES
    Revised June 2010
Verification of Review
By signing this form, you confirm that you have discussed this review in detail with your supervisor.
Signing this form does not necessarily indicate that you agree with this evaluation.


Employee Signature                                                  Date



Manager Signature                                                   Date




                                                                                                  - 13 -
   CAI-Asia Center Operations Manual: ANNEXES
   Revised June 2010
                           Annex 9.         Sample Terms of Reference Form




          Clean Air Initiative for Asian Cities (CAI-Asia) Center
Contract
Project
Expertise
Source                                           Category
Objective/Purpose of the Assignment:

     * A brief background of the assignment, overall purpose and. what the consultant must achieve
during the contract. Objectives must be written in measurable terms.



Scope of Work:

      * A brief description of what the consultant is expected to do to achieve the objectives, duration of
the assignment.



Detailed Tasks:

       * Enumerate the specific tasks that should be undertaken (eg. meet with specific people, gather
specific data)




Output/Reporting Requirements:

      * Specify the outputs the consultant is expected to have at the end of the contract or at specific
timelines during the contract. Outputs must be tangible even for consultants contracted to ‘advise’.




Places of Assignment                       Working Days                Estimated Dates (dd/mm/yyyy)




                                                                                                    - 14 -
    CAI-Asia Center Operations Manual: ANNEXES
    Revised June 2010
                    Annex 10.      Sample Request for Consultancy




              Clean Air Initiative for Asian Cities Center        MEMORANDUM
              (CAI-Asia Center)




FOR           :

FROM          :

DATE          :

SUBJECT       :


This is to seek the approval of the Executive Director for the engagement of
[consultant/consulting firm] to undertake [indicate specific assignment] under the
[indicate project name] during the period [start and end date]. The Terms of Reference
for the proposed engagement is attached for your review.

Contract value is estimated at [US $_____] proposed to be sourced from [indicate
budget line]. Also attached is the Project funds status report (Annex 41) prepared by the
FAS indicating available funds for the engagement.


For consideration and approval.



[name and signature]
Division Manager
User Division


Cc: The Division Manager, FAS




                                                                                   - 15 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
      Annex 11.          Sample Expression of Interest Form for Individual Consultants




                   Clean Air Initiative for Asian Cities (CAI-Asia Center)



Expressions of Interest
Individual Consultants

A.      Project Data

Project Name:
Project Number:
Project Country:

B.      Please provide details about yourself

Name
Country of Nationality
Address


E-mail
Project-related experience



Other information (please provide a summary of your qualifications




C.    Certification. (The information provided is accurate and true to the best of my knowledge)

Completed by:
(Name/Position)
Date (dd/mm/yyyy)




                                                                                            - 16 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                             Annex 12.               Curriculum Vitae (CV) Format

TO BE SUBMITTED WITH EOI
 1.   PROPOSED POSITION                                     (ONLY ONE CANDIDATE SHOULD BE
      FOR THIS PROJECT                                 :    NOMINATED FOR EACH POSITION)

 2.    NAME                                            :

 3.    DATE OF BIRTH                                   :

 4.    NATIONALITY                                     :

 5.    PERSONAL ADDRESS                                :
       TELEPHONE NO.                                   :
       FAX NO.                                         :
       E-MAIL ADDRESS                                  :

 6.    EDUCATION                                       :
        (The years in which various qualifications
        were obtained must be stated)


 7.    OTHER TRAINING                                  :
 8.    LANGUAGE & DEGREE
       OF PROFICIENCY                                  :

 9.    MEMBERSHIP IN
       PROFESSIONAL                                    :
       SOCIETIES

10.    COUNTRIES OF WORK
       EXPERIENCE                                      :
                                                            (Starting with present position, list in reversed order every
11.    EMPLOYMENT RECORD                               :    employment held and state the start and end dates of each
                                                            employment.)


       FROM                                            :    TO
                                                            (Clearly distinguish if the consulting firm was either (a) your
       EMPLOYER                                        :    "employer" i.e. you are/were a regular full-time employee of the
                                                            consulting firm or (b) a “client” i.e. you are/or have worked as a
                                                            consultant or an adviser with the consulting firm)


       POSITION HELD AND                               :
       DESCRIPTION OF DUTIES
12.    DETAILED TASKS                                  :    WORK UNDERTAKEN THAT BEST
       ASSIGNED                                             ILLUSTRATES CAPABILITY TO HANDLE
       (In this column, list tasks one by one and
       support each task by project experience in
                                                            THE TASKS ASSIGNED.
       the right hand side column.)                         (In this column, list project name, location, year, position held, i.e.,
                                                            Team Leader, Hydrologist, Agricultural Economist, etc. and exact
                                                            duties rendered and time spent on each project.)




                                                                                                                           - 17 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
13.     PERSONAL/PERMANENT EMPLOYMENT STATUS CERTIFICATION (Please follow
        the following format exactly. Omission will be treated as noncompliance)
                                                                                                                    Yes      No
              (i)     I am a former CAI-Asia Center, Inc. Staff member

                            •     if yes, I retired/resigned from the CAI-Asia Center, Inc. more than twelve (12) months ago

              (ii)    I am a close relative of a current CAI-Asia Center, Inc. staff member

              (iii)   I am the spouse of a current CAI-Asia Center, Inc. staff member

              (iv)    I am a regular full-time employee of the Consultant or associated firm

              (v)      I was involved in the preparation of the terms of reference for this
                      consulting services assignment




        I, the undersigned, confirm that, to the best of my knowledge, this CV correctly describes myself,
        my qualifications, and my experience.

        I understand that any willful misstatement in this CV may lead to my disqualification or
        dismissal, if engaged.

      SIGNATURE:                                        DATE OF SIGNING:                         Day      Month       Year




                                                                                                                          - 18 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                    Annex 13.          Individual Consultants’ Ranking Form




              Rating Sheet for Individual Consultants

Project:
Expertise:
Candidate:
Last Name                                          First Name
Nationality                                        Gender
Date of Birth                                      Age
Consultant Type          Local/Int'l               Civil Status
Engage Directly          Yes/No                    Gov't Employee
Gov't Employee           Yes/No                    Preferred Currency   USD

Contact Information
Address
Country
Phone/Mobile/Fax
Email

Qualification Grade
                                                            Qty               Net
Working Experience
General Experience (in years)
Specific Experience relevant to assignment (in
years)
No. of assignments in similar geographical area
No. of assignments in project country
No. of assignments as a senior advisory or
managerial level
Academic Qualifications
Basic Degree
Master Degree
PhD (when preferred by TOR)
Other Professional Qualification (relevant to
assignment)
Other Exceptional Qualifications
Enter 0-20 depending on relevance then give full
explanation relevant to assignment and the
Remarks box below
TOTAL
Remarks:




                                                                                    - 19 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                           Annex 14.        Sample Offer Letter Form




              Clean Air Initiative for Asian Cities (CAI-Asia Center)




To:                                                 Date:
                                                    Fax:


Originator:                                         Approved by:




                                          OFFER LETTER

Dear Mr./Ms.:
                                      Contract No._______
                                  Project Name: ____________


The Clean Air Initiatives for Asian Cities (CAI-Asia) Center is pleased to confirm its offer to
engage you to consult for the project.

Please study the terms and conditions and appendixes. The CAI-Asia Center offer is usually
nonnegotiable. A counter proposal for higher remuneration will delay the assignment, and the
Center may opt for the next candidate.

We look forward to your accepting our offer and signing the attached confirmation of acceptance
below and returning it, within 5 days from your receiving this offer, by fax to the CAI-Asia Center
at [telephone number].

You may e-mail Mr./Ms. [name of Admin Officer] for inquiries or clarifications.


Sincerely,
[Signature]
[name]
Division Manager, FAS
CAI-Asia Center

Appendixes:
Appendix 1: Terms and Conditions
Appendix 2: Terms of Reference
Appendix 3: Remuneration and Out-of-Pocket Expenses
Confirmation of Acceptance




                                                                                             - 20 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                    Annex 15.         Sample Individual Consultants’ Contract

Note: This template is applicable for contracts defined in Sections 6.3.2, item 2. The Terms and
Conditions (General and Specific Conditions) vary with each type of appointment.


                       TERMS AND CONDITIONS FOR CONTRACT NO._______
                                       DEFINITIONS

D-1.     Consultancy inputs means the amount of the time when the Consultant’s services are required
         during the engagement. One person-month is equivalent to 30 calendar days or 22 working days.
         Home Office work means Consultant’s work at the Consultant’s own office or residence; Field work
         means Consultant’s work at an Assignment Location other than the Consultant’s Place of
         Residence.
D-2.    Consultant means the person who will provide the service under this contract.
D-3.    Consultant’s Place of Residence is the city or province where the Consultant holds permanent
         residence or office.
D-4.    Contract comprises the Offer Letter, the Specific Conditions, the General Conditions, the Notice to
         Proceed (NTP) and all Appendixes to any of these documents. The Contract becomes effective
         upon receipt of the NTP. NTP is issued after the Consultant accepts the offer.
D-5.    D for Definitions; S for Specific Conditions and G for General Conditions.
D-6.     Services means the services the Consultant will perform as specified in the Terms of Reference
         (“TOR”) in Appendix 2.
D-7      Term of Engagement means the period when the Contract is effective.
D-8       User Division means the CAI-Asia Center division that uses and supervises the Consultant. User
         Unit issues NTP. The Consultant should report to the User Unit during Term of Engagement.



                      TERMS AND CONDITIONS FOR CONTRACT NO. _________
                                   SPECIFIC CONDITIONS

S-1.    Term of Engagement: The Consultant shall make [herself/himself] available for Services from [date
        start and ending date] on an intermittent basis. The commencement date is confirmed in the Notice
        to Proceed (NTP). Should the NTP indicate a commencement date and completion date different
        from the above, the NTP shall prevail.
S-2.    Consultancy Inputs: As required by Terms of Reference (TOR) in Appendix 2.
S-3.    Assignment Location: [______________]
S-4.    Details on S-1 to S-3 are further specified in the Terms of Reference (TOR) in Appendix 2.
S-5.    Remuneration: A lump sum of [amount] which includes remuneration and all expenses except for
        reimbursable expenses, if any, as indicated in p. __ of this Contract.
S-6.    Out-of-Pocket Expenses: Lump Sum with or without Reimbursable Expenses. Details are specified
        in p. __ of this contract.
S-7.    Maximum Payment: [amount]
S-8.    Insurance: The Consultant is not eligible for any Group life or medical insurance expect during work
        related travel that will be authorized by the Executive Director.
S-9.    User Unit:
        [name of project officer] Fax No.:
        [division] E-mail:
S-10.   Currency of Payment: US Dollar (USD)
S-11.   Bank Account:
        (for USD)                                                (for non-USD)
        To be forwarded to CTL
S-12.   Consultant's Information:
        [name and complete address]                              Fax No.:
                                                                 E-mail:
        Nationality:

S-13.   Billing Unit:
        Financial and Administrative Services (FAS) Fax No.:
        CAI-Asia Center                             E-mail:
                                                                                                     - 21 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                            Annex 12 cont’d.
                        TERMS AND CONDITIONS FOR CONTRACT NO._______
                                    GENERAL CONDITIONS

G-1.   Performance of the Consultant - During the Term of Engagement when the Consultant’s inputs
       are required, the Consultant shall work full time and shall diligently and effectively complete the
       services under the TOR. The Consultant shall cooperate with the CAI-Asia Center in the Project’s
       interest. The CAI-Asia Center reserves its right to evaluate the Consultant’s performance and to
       maintain a record of the performance evaluation to refer to if the Consultant is considered for re-
       engagement. The performance evaluation criteria are provided in the Individual Consultant
       Performance Form which is accessible at http://www._____

G-2.   Contractual Ethics – The CAI-Asia Center requires that Consultants and consulting firms under
       the CAI-Asia Center financed contracts observe high ethics (refer to Section 2.12 of the CAI-Asia
       Center Operations Manual on Policies on Anti-Corruption). Consultants and consulting firms under
       the CAI-Asia Center financed contracts shall also act in accordance with the CAI-Asia Center’s
       policy on harassment (refer to Section 6.7 of the CAI-Asia Center Operations Manual on Policies
       on Harassment). No fees, gratuities, rebates, gifts, commissions or other payments, other than
       those shown in this Contract have been given or received in connection with the selection process
       or in the Contract’s execution.

G-3.   Remuneration.

       a.   The CAI-Asia Center pays the Consultant’s remuneration either to the Consultant or, if the
            CAI-Asia Center engages the Consultant through a firm, to the firm. The CAI-Asia Center pays
            remuneration for the period in which the Center requires the Consultant’s full time commitment
            to provide Consultancy Inputs. The payment is subject to the terms and conditions in Specific
            Conditions [   ].

       b.   If Specific Conditions Clause 5 indicates a lump sum payment for the Services, the Consultant’s
              remuneration and OPE, except for any reimbursable expenses specified in p. __ of this
              Contract, will be paid in lump sum in accordance with a payment schedule shown in p. ___ of
              this Contract.

       c.   If Specific Conditions Clause 5 does not indicate a lump sum and if the Consultancy Inputs are
            less than 30 calendar days or 22 working days, the CAI-Asia Center pays the remuneration in
            the following way:
                i.    By calendar days for the time the Consultant spends on the services in the field, that
                      is, at a location other than the Consultant’s place of residence. The field time includes
                      the time required to travel to and from the assignment location via the most direct
                      route, the CAI-Asia Center official holidays, and weekends except the weekend that
                      falls at the end of the assignment, and/or,
                ii. By working days for the days that the Consultant works full-time to provide the services
                      at his or her home office, that is, the Consultant’s place of residence. iii. The
                      maximum number of paid working days in a calendar month is 22 for purposes of this
                      Contract.

       d. If Specific Conditions Clause 5 does not indicate a lump sum and if the Consultancy Inputs are
           30 calendar days or more, the CAI-Asia Center pays remuneration as follows.

                 i.    By person-months, including the time required to travel to and from the assignment
                       location via the most direct-route, ADB official holidays, and weekends except the
                       weekend that falls at the end of the assignment.
                 ii.   The Center calculates daily remuneration rates by dividing the monthly rate by 30 for
                       a calendar day and by 22 for a working day.

G-4.   Out-of-Pocket Expenses (OPE) and Reimbursable Expenses
       a. If Specific Conditions Clause 5 does not indicate a lump sum for Remuneration and OPE, the
           CAI-Asia Center will pay OPE to the Consultant, or the Firm if the Consultant is engaged
           through a firm, for actual costs substantiated by receipts of purchase or other supporting
           documents as specified in Appendix 3, unless otherwise specified. Details of the OPE are
           shown in Appendix 3 which may include the following:

                                                                                                        - 22 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                             Annex 12 cont’d.
                 i.    Per Diem Allowance is a daily allowance for accommodation and subsistence when
                       the Consultant stays overnight at a place other than the Consultant’s Place of
                       Residence to perform the Services during the Consultant’s Term of Engagement. Per
                       Diems follow the CAI-Asia Center’s current standard per diem rates that are based on
                       UN rates).
                   ii.   Travel Cost covers all transportation costs the Consultant reasonably incurs in
                       travelling for the Services including the cost of transportation by appropriate public
                       transport between the Consultant’s Place of Residence and the nearest convenient
                       international airport. Air travel should be less than first class and by the most direct
                       route with connecting flights. Extra costs for non-work related stop-over en-route
                       exceeding the allowable travel time or for non-direct route flights shall be at the
                       Consultant’s own expense.
        b.   If Specific Conditions Clause 5 indicates a lump sum for Remuneration and OPE without
             reimbursable expenses, the CAI-Asia Center will make payments following the payment
             schedule in Appendix 3 and in accordance with General Conditions Clause 5.
        c.     If Specific Conditions Clause 5 indicates a lump sum for Remuneration and OPE with
             reimbursable expenses, the CAI-Asia Center will make payments following the payment
             schedule in Appendix 3 and in accordance with General Conditions Clause 5 and reimburse
             either the Consultant or the Firm the actual cost of the reimbursable expenses.

G-5. Payment
        a. the CAI-Asia Center makes payment in accordance with Specific Conditions Clause 5, General
            Conditions Clause 3, and General Conditions Clause 6 when applicable, within a reasonable
            period, normally (depending on General Conditions Clause 5-c) not more than 30 days, unless
            otherwise specified in Appendix 3, from the CAI-Asia Center’s receipt of the invoice from the
            Consultant, or the Firm if the Consultant is engaged through a firm.
        b. Unless otherwise specified in Appendix 3, the invoice shall be submitted to the User Division
            each month with a statement showing the time the Consultant spent during that period
            performing the Services and with the supporting documents for the reimbursable expenses as
            required in Appendix 3.
        c. Payment follows the User Division certifying that Services are satisfactory.
        d. The CAI-Asia Center payments shall be made to the bank account as specified in Specific
            Conditions Clause 13.
        e. The Center discourages frequent change of Firm/Consultant’s bank account and requires an
            official request with justifications for such a change. In the case of Firm, the letter must be
            signed by the same person who signed this Contract on behalf of the firm or an authorized
            representative of the Firm. The CAI-Asia Center does not accept a third party’s bank account
            other than the contracting party’s account.
        f. The Consultant, or the Firm if the Consultant is engaged through a firm, shall submit the final
            invoice within 60 calendar days after the completion of the Term of Engagement or termination
            of the Contract. If no final invoice is received by the CAI-Asia Center within 60 calendar days
            after the completion of the Term of Engagement or termination of the Contract, the CAI-Asia
            Center shall make the final payment based on the Contract’s account record certified by the
            User Unit after the settlement of any pending matters, such as outstanding advance payment,
            Contract variations or handover of equipment by the Consultant to the CAI-Asia Center if any
            equipment is purchased by the Consultant using the CAI-Asia Center funds. The CAI-Asia
            Center will then close the Contract account after the final payment. All payment claims to the
            CAI-Asia Center, if any, from the Consultant or the Firm, shall be considered as irrevocably
            waived after the closure of the Contract account.
        g. Total payment under this Contract shall not exceed the maximum amount indicated in Specific
            Conditions Clause 7 unless the CAI-Asia Center issues a Contract variation order to amend
            the maximum amount.
        h. Except for the monthly and final invoice which shall be submitted by the Consultant to the User
            Unit, all requests for advances, queries and follow-ups regarding status of payments should be
            sent to the FAS.

G-6.    Advances - The Consultant, and the Firm if the Consultant is engaged through a firm, may request
        an advance on OPE up to the amount as indicated in Specific Conditions (Specific Conditions
        Clause 10). The advance will be recovered in the number of installments specified in Specific
        Conditions Clause 10 starting from the first billing. The User Division must approve additional
        advance(s) and recovery is adjusted.

                                                                                                        - 23 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                             Annex 12 cont’d.
G-7.    Insurance
        a. Check Specific Conditions Clause 8 on applicability of b) and c) below.
        b. The consultant shall take out his own insurance coverage. Travel insurance shall however be
             provided on authorized travel on official CAI- Asia Center business.
        c. Where the CAI-Asia Center engages the Consultant through a firm, the CAI-Asia Center shall
             undertake no responsibility for life, accident, travel, or any other insurance coverage for the
             employees or sub-contractors of the Consultant or for the dependents of any such persons
             who may travel to the duty station or elsewhere for the purposes of the Services. The Firm
             shall
                  i. take out and maintain adequate insurance against loss of or damage to equipment the
                        Firm or Consultant purchases in whole or in part with funds provided by the CAI-Asia
                        Center, if any. The proceeds of such insurance shall be payable in a currency freely
                        usable to replace or repair such equipment.
                  ii. take out and maintain adequate professional indemnity insurance and insurance
                        against claims by third parties resulting from acts performed in carrying out the
                        Services.
                  iii. take out any other necessary insurance coverage for the Consultant.
G-8.    Language - All reports, unless otherwise specified in the TOR, and all communication related to
        the execution of this Contract shall be in English language.
G-9.    Reports - The Consultant shall submit to the User Division reports and/or other written and
        electronic documents as required in the TOR. A 500-word (maximum) knowledge summary will be
        included in the front section of the final report to be delivered on a CD. All reports, notes drawings,
        specifications, statistics, plans and other documents and data compiled or made by the Consultant
        or the Expert while performing the Services shall be the sole and exclusive property of the CAI-Asia
        Center. Upon Contract termination or conclusion, the Center has the right to direct the disposal of
        such property which may be made available to the general public in the Center’s sole discretion.
        The Consultant may retain copies of such documents and data but shall not use the same for
        purposes unrelated to the Services without the prior approval of the CAI-Asia Center. After
        concluding the Term of Engagement, the Consultant shall continue to cooperate with the CAI-Asia
        Center to clarify or explain any contents in the reports the Consultant submits.
G-10.   Intellectual Property - The Consultant, and the Firm if the Consultant is engaged through a firm,
        shall ensure that all its Services and all goods and services (including without limitation all
        computer hardware, software, and systems) procured by the Consultant from the CAI-Asia Center
        funds or used by the Consultant in the carrying out of the Services do not violate or infringe on any
        industrial property or intellectual property right or any third party claim. The Consultant, and the
        Firm if the Consultant is engaged through a firm, shall indemnify the CAI-Asia Center from and
        against any and all claims, liabilities, obligations, losses, damages, penalties, actions, suits,
        proceedings, demands, costs, expenses, and disbursements that may be imposed on, incurred by,
        or asserted against the CAI-Asia Center for actions related to performing the Services. These
        include the Consultant’s or Firm’s infringing or allegedly infringing copyright, trademark, patent, or
        other protected right.
G-11.   Public Statement and Commitment - The Consultant, and the Firm if the Consultant is engaged
        through a firm, shall act discretely and refrain from making public statements about the Services or
        any the CAI-Asia Center projects without the CAI-Asia Center’s prior written approval. The
        Consultant, and the Firm if the Consultant is engaged through a firm, has no authority to commit
        the CAI-Asia Center in any capacity and shall make this clear as circumstances warrant. The
        Consultant should refrain from any political activity involving the assignment or in the country where
        the project takes place during the Term of Engagement. The Consultant shall not take any action,
        such as using business cards or stationary carrying the name of the CAI-Asia Center, which may
        imply that the Consultant is a staff member of the CAI-Asia Center. The Consultant, however, may
        use the the CAI-Asia Center-consultant-business-card format as shown at http://
G-12.   Disclosure of Information – All materials produced or acquired under the terms of the
        appointment shall remain the property of the CAI-Asia Center. Furthermore the CAI-Asia Center
        retains the exclusive right to publish or disseminate reports arising from such materials.
G-13.   Equipment - It is agreed that the Consultant, unless otherwise approved by the CAI-Asia Center,
        shall use, when necessary, his own computing tools, laptop or notebook for performing the
        Services. In special cases, the CAI-Asia Center may provide funds under the Contract for the
        Firm/Consultant to purchase equipment for use by the Consultant during the Term of Engagement.
        Such equipment shall remain as the CAI-Asia Center’s property and should be handed over to the
        CAI-Asia Center, unless otherwise instructed by the CAI-Asia Center, upon the termination of the
        Contract.

                                                                                                        - 24 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                Annex 12 cont’d.
G-14.    Relationship of the Parties - Nothing contained in this Contract shall be construed as establishing
          any relationship other than that of independent contractor between the CAI-Asia Center and the
          Consultant, or the Firm if the Consultant is engaged through a firm.
G-15.    Subcontracting - The Consultant, and the Firm if the Consultant is engaged through a firm, shall not
          assign or sub-let the Contract or any part of it without the CAI-Asia Center’s prior written consent
          for an approved sub-contract.
G-16.    Disability or Incompetence of the Consultant - the CAI-Asia Center’s engagement of the Consultant
          is conditional upon the Consultant’s or the Firm’s confirmation to the CAI-Asia Center that the
          Consultant is healthy and without physical or mental disability that may interfere with performing the
          Services. The Consultant shall, if called upon to do so, give the CAI-Asia Center any medical or
          other evidence as the CAI-Asia Center may reasonably require. If at any time in the CAI-Asia
          Center’s opinion, whether for reasons of health or otherwise, the Consultant is unable to perform or
          to complete the Services adequately, the CAI-Asia Center may terminate this Contract.
G-17.    Unusual Incidence - The Consultant shall report immediately to the CAI-Asia Center any accident
          involving personal injury or property damage during the Term of Engagement. The Consultant shall
          also report to the CAI-Asia Center immediately any circumstances which might hinder or prejudice
          performance of the Services.
G-18.    Visas - The Consultant shall obtain visa and other approvals from governmental authorities required
          under applicable laws and regulations of the Assignment Location to permit the Consultant to carry
          out the Services and, if applicable, shall obtain visas and other required approvals from the relevant
          governmental authorities for any dependents of such Consultant physically present in the
          Assignment Location during the Term of Engagement.
G-19.   Suspension; Termination of Contract
          a. the CAI-Asia Center may suspend performance of the whole or part of the Contract, or the
               disbursement of funds hereunder, for a period as the CAI-Asia Center deems necessary if the
               CAI-Asia Center determines that a condition has arisen which, in the reasonable opinion of the
               CAI-Asia Center, interferes, or threatens to interfere, with the effective carrying out of the
               assignment or accomplishing the Services for a specified period of time not to exceed thirty
               (30) working days; Notwithstanding the above, this Contract may be terminated by the CAI-
               Asia Center:
                    i. upon the expiration of a period of time of not less than 15 (fifteen) calendar days after
                         written notice of its intention to terminate has been given to the Consultant; or
                    ii. immediately if the CAI-Asia Center determines that the Consultant, and the Firm if the
                         Consultant is engaged through a firm, has engaged in unethical behavior, or corrupt
                         or fraudulent practices.
                    iii. immediately if the CAI-Asia Center determines that the Services to date are so
                         deficient as to demonstrate that the Services cannot be satisfactorily performed.
          b. The Consultant, or the Firm if the Consultant is engaged through a firm, may terminate the
               Contract if there are circumstances beyond the Consultant’s reasonable control which make it
               impossible to carry out the Services. Consultant must substantiate such reasons in writing and
               the CAI-Asia Center must accept the justification in order that such a termination can occur.
               Upon the CAI-Asia Center’s confirmation in writing, or the failure of the CAI-Asia Center to
               respond to such submission of justification within fifteen (15) days from receipt, the Consultant
               shall be relieved from performing the Services and this Contract shall be terminated.
          c. Termination Procedure - Upon termination of the Contract or the CAI-Asia Center giving such
               notice, the Consultant, and the Firm if the Consultant is engaged through a firm, shall
               immediately bring the Services to an orderly close and reduce expenditures to a minimum.
               Unless the Consultant’s default causes termination, the Consultant, or the Firm if the
               Consultant is engaged through a firm, is entitled to full reimbursement for costs duly and
               reasonably incurred prior to the termination date. Reasonable costs for the orderly termination
               of Services, including return travel by the Consultant, are reimbursable. If termination is
               occasioned by the Consultant’s or the Firms’ default, the Consultant, or the Firm if the
               Consultant is engaged through a firm, or the CAI-Asia Center as the case may be, shall be
               entitled to the difference between:
                    i. the costs, direct or indirect, the Consultant or the Firm incurs in the performance of the
                         Services up to the date of termination; and
                    ii. the aggregate of all sums the CAI-Asia Center paid to the Consultant or the Firm under
                         the Contract.
G-20.      Entire Agreement and Contract Amendment - The Contract as amended from time to time under
          the foregoing provisions supersedes all prior arrangements whether written or oral, expressed or


                                                                                                          - 25 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                               Annex 12 cont’d.
          implied. The amendment, whether partly or wholly, of any of the Contract’s terms or conditions shall
          be valid only if in writing and signed by the CAI-Asia Center’s Executive Director.
G-21.    Notices and Requests - Any notice or request required or permitted under this Contract shall be in
          writing. Such notice or request shall be deemed to be fully given or made when it is delivered by
          hand, mail, or fax to the intended party. The authorized party under this Contract for the CAI-Asia
          Center is the Division Manager of the User Unit (name and address are in Specific Conditions
          Clause 9) and the authorized party for the Consultant is the person who confirms the acceptance of
          the Offer Letter and the address is indicated in the Offer Letter, unless otherwise notified by the
          Consultant, or the Firm if the Consultant is engaged through a firm.
G-22.   Delays - No failure or delay on the part of the CAI-Asia Center in exercising any power or right under
          this Contract shall operate as a waiver of that power or right, nor shall any single or partial exercise
          of such power or right preclude any other or further exercise or any other power or right under this
          Contract.
G-23.   Inspection and Audit - The Consultant, and the Firm where the Consultant is engaged through a firm,
          agree to allow the CAI-Asia Center or a representative authorized by the CAI-Asia Center to
          inspect and audit any accounts, documents, and records relating to this Contract.
G-24.   Settlement of Disputes
          a. The Consultant, or the Firm where the Consultant is engaged through a firm, and the CAI-Asia
               Center agree that avoidance or early resolution of disputes is crucial for smoothly executing
               this Contract and completing the assignment. Each party should settle amicably all disputes
               arising out of or connected with this Contract or its interpretation through the following
               procedure: each party’s authorized representative will examine the matter(s) in dispute and
               consider available options to resolve such dispute. The parties will seek agreement on the
               most reasonable option to resolve the dispute and act appropriately to that end.
          b. Any dispute or difference arising out of this Contract or in connection with it which cannot be
               amicably settled between the parties under (a) above shall be finally settled under the Rules of
               Arbitration of the International Chamber of Commerce by one or more arbitrators appointed
               under the said Rules. The arbitration shall take place in Manila, Philippines. The resulting
               award shall be final and binding on the parties and shall replace other remedies. The language
               of arbitration shall be English and each party shall bear its own costs.

         Appendix 2 of the Contract: TOR
         Appendix 3. Remuneration and Out-of-Pocket Expenses

Contract
Project Name
Expertise
Source                  (International/domestic)                      Category        (Independent or Firm)
Prof. Group                                                           Job Level
    Code                      Description                    Qty.          Unit           Amount           Total




                                                                                                           - 26 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                    .


                         Annex 16.        Confirmation of Acceptance

                                    The CAI-Asia Center
                                  FAX-BACK REPLY FORM

ADDRESEE:                                                  DESTINATION
                                                           FAX:

DATE:                                                      PAGE ONE OF:

                              CONFIRMATION OF ACCEPTANCE

Contract:
Project:
(Please mark the relevant box/es and sign your confirmation over the corresponding name)


Remarks:


The Consultants assigned to this project have carefully read your offer letter dated __ December
2006 and all its attachments. I accept the offer on behalf of ___________, indicated below is our
firm's payment remittance information.




         ____________________________________                        ____________________
                                                                              Date




                               Payment Remittance Information
                   For USD                                For Other Currencies
Bank Name:                                    Bank Name:
Address:                                      Address:

Payee:
Account No.:


                                                 Payee:
                                                 Account No.:
            NOTE: Instead of fax, you may also scan this page and e-mail to _______




                                                                                            - 27 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                     .


                            Annex 17.        Sample Notice to Proceed




                        Clean Air Initiative for Asian Cities (CAI-Asia Center)




  To:                                                Date:
                                                     Fax:


  Originator:                                        Approved by:




                                        NOTICE TO PROCEED

Dear Ms./Mr _________



                                       Contract No._________



This serves as notice to proceed with the Services as per Definitions Section [         ] and Specific
Conditions [    ] of the contract. Please commence the Services on [day, date/ month/year] and
report to the undersigned [email address] at the assignment location. The Services shall be
completed by [day, date/month/year]. Please note if the commencement date and completion date
indicated above are different from specific conditions [ ] of the contract, the dates indicated above
shall prevail.


Request for payment forms are available upon request from the Administrative Division.



Sincerely,



Division Manager,
Administrative Division
Designated by the Executive Director
CAI-Asia Center




                                                                                                - 28 -
  CAI-Asia Center Operations Manual: ANNEXES
  Revised June 2010
                                                                                                     .


                           Annex 18.        Sample EOI form for Consulting Firms




                          Clean Air Initiative for Asian Cities (CAI-Asia Center)



Expressions of Interest
Consulting Firms

1.          Project Data

Project Name:
Project Number:
Project Country:

2.          Eligibility

Declaration

We hereby declare that:


     i.           we have read the Consulting Services Recruitment Notice (CSRN), including the
                  attached terms of reference (TOR), for this assignment; and

     ii.          we have not been engaged to prepare such TOR as a firm; and
     III.         no full-time or part-time or contracted expert employed by our firm has been engaged
                  to prepare such TOR.

We further confirm that, if any of our experts is engaged to prepare TOR for any ensuing
assignment as part of our work product under the assignment to which this CSRN relates, our
firm and any such expert(s) will be disqualified from short-listing and/or participation in such
follow-on assignment.

 Signed by
 (Name/Position)
 Date
 (dd/mm/yyyy)

3.          Management competence (Please answer each question in one paragraph of 3-5
            sentences)

            3.1       Quality Control Systems

                  a. Does your firm have policies, procedures or practices in place that promote
                     quality in: the workplace, your interaction with clients, and the outputs you
                     produce? If yes, describe briefly.




                                                                                                - 29 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                    .




            b. Does your firm have a dedicated unit or staff solely responsible for quality
               assurance? If yes, describe briefly.




            c.   How will you ensure the quality of your firm’s performance over the life of this
                 assignment—from proposal preparation through implementation to assignment
                 completion?




            d. How will your firm deal with any complaints concerning the performance of staff
               or the quality of the reports submitted for this consulting assignment? What
               internal controls are in place to address and resolve complaints?




4.      Technical Qualifications

        4.1 Narrative Descriptions

Narrative Descriptions
Based on the attached reference project sheets (4.2), highlight features of relevance to the
proposed project




                                                                                               - 30 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                               .



    Project sheets. Indicate up to 5 projects you feel are relevant.
Project 1 of __

Project Name
Name of Client
Country                                               Project location
                                                      within Country
Participation                     As lead firm
                                  As associate firm
Value of Services                                     (US $)
Source of financing
Consultancy Services
 (i) No. of Staff
(ii) No. of Person/Months
Length of Consultancy Assignment
 Start Date                  (dd/mm/yyyy)
 Completion Date             (dd/mm/yyyy)
Name of Associate Firms (if any)


No. of Person-Months of Professional Staff Provided by Associated Firm(s)
Name of Senior Staff (Project Director/Coordinator, Team Leader) Involved and Functions
Performed


Detailed Narrative Description of the Project




Detailed Description of the Actual Services Provided by your Firm




                                                                                          - 31 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                   .


                      Annex 19.        Consulting Firms’ Ranking Form

Project:
Name of firm:

   Evaluation Criteria/ Subcriteria                 Weight 2/                      Score
A. Workplan and Personnel Schedule                 (100 points)

B. Personnel Biodata 1/                            (900 points)
   1. Sub-criteria
   2. Sub-criteria


Separate forms will be used for each of the firms being evaluated that will be summarized in the
table below:


1/ individuals may be rated using the criteria indicated in the individual consultant ranking form
found in Error! Reference source not found..


                                        Summary Table
                Consulting firms                                       Score
1. Firm A
2. Firm B
3. Firm C
4.




                                                                                            - 32 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                .



                      Annex 20.          Sample Contract for Consulting Firms

                                  CONSULTANT SERVICES CONTRACT

                                                 CONTRACT


                                          Contract No. ______
                                      RCS No. ______: [Project Title]

The CAI-Asia Center, Inc. is pleased to confirm its offer to engage a team of experts (list attached) through
[firm’s name] to consult for the project.

Please study the terms and conditions and appendixes.

We look forward to your accepting our offer and signing the attached confirmation of acceptance and
returning it, within 2 days from your receiving this offer, by fax to the CAI-Asia Center at _____________.
You may e-mail me at ______________ for inquiries or clarifications.


Sincerely,

Signatory


Appendixes:
Appendix 1:       Terms and Conditions
Appendix 2:       Terms of Reference
Appendix 3:       List of Experts
Appendix 3-A:     Personnel Schedule
Appendix 4:       Payment Schedule
Confirmation of Acceptance




                                                                                                        - 33 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                              .


                                                                                         Annex 17 cont’d.
                                                                                           Appendix 1-A

                     TERMS AND CONDITIONS FOR CONTRACT NO. _________

                                              DEFINITIONS

D-1.    Consultancy inputs means the amount of the time when the Consultant’s services are required
        during the engagement. One person-month is equivalent to 30 calendar days or 22 working
        days. Home Office work means Consultant’s work at the Consultant’s own office or residence;
        Field work means Consultant’s work at an Assignment Location other than the Consultant’s
        Place of Residence.

D-2.    Consultant means the expert or a team of experts who will provide the service under Appendix 3-
        A of the contract.

D-3.    Consultant’s Place of Residence is the city or province where the expert or an expert in the team
        holds permanent residence or office.

D-4.    Contract comprises the Offer Letter, the Specific Conditions, the General Conditions, the Notice to
        Proceed (NTP) and all Appendixes to any of these documents. The Contract becomes effective
        upon receipt of the CAI-Asia Center’s NTP. NTP is issued after the Consultant accepts the offer.

D-5.    D for Definitions; S for Specific Conditions and G for General Conditions.

D-6.    Executing Agency (EA) (NOT APPLICABLE TO THIS CONTRACT)

D-7.    Firm means the company or organization through which the Consultant is engaged.

D-8.    Project means a CAI-Asia Center financed project for which the Service is required.

D-9.    Services means the services the Consultant will perform as specified in the Terms of Reference
        (“TOR”) in Appendix 2.

D-10.   Term of Engagement means the period when the Contract is effective.

D-11.   User Division means the CAI-Asia Center office or division that uses and supervises the
        Consultant(s). User Unit issues NTP. The Consultant should report to the User Unit during Term of
        Engagement.


                                                                                              Appendix 1-B
                   TERMS AND CONDITIONS FOR CONTRACT NO. _____________

                                         SPECIFIC CONDITIONS

S-1.    Term of Engagement: The Firm shall make the Consulting Team available for Services from -
        ___________to ___________The commencement date is confirmed in the Notice to Proceed
        (NTP). Should the NTP indicate a commencement date and completion date different from the
        above, the NTP shall prevail.

S-2.    Consultancy Inputs: As required by Terms of Reference (TOR) in Appendix 2.

S-3.    Assignment Location: ___________
S-4.    Details on S-1 to S-3 are further specified in the Terms of Reference (TOR) in Appendix 2.

S-5.    Remuneration: A lump sum of ___________which includes remuneration and all expenses.
        Payment will be made in accordance with General Conditions Clause 3, 4, 5, and Appendix 4.

S-6.    Out-of-Pocket Expenses: Included in the lump-sum in S5.

S-7.    Maximum Payment: ___________

                                                                                                     - 34 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                 .


                                                                                      Annex 17 cont’d.
S-8.    Insurance: To be provided by the Firm. (Details are in General Conditions Clause 7)
S-9.    User Unit:
                                          Fax No.:
                                          E-mail:

S-10.   Advances: N.A.

S-11.   Executing Agency: Not applicable to this contract.

S-12.   Currency of Payment: US Dollar (USD)

S-13.   Bank Account:
        Account Name:
        Bank Name:
        Bank Address:
        US Account Number:
        Bank Number:
        Intermediary Bank:

S-14.   Consultant's Information:
                                                                 Fax:
                                                                 E-mail:


S-15.   Billing Unit:
                                                                 Fax No.:
                                                                 E-mail:

                                                                                                  Appendix 1-C

                        TERMS AND CONDITIONS FOR CONTRACT NO. _________

                                         GENERAL CONDITIONS

G-1.    Performance of the Consultant

        a.       During the Term of Engagement when the Consultant’s inputs are required, the
                 Consultant team members shall work full time for their respective assignments in
                 accordance with the TOR and shall diligently and effectively complete the services under
                 the TOR. CAI-Asia Center reserves its right to evaluate the Consultant’s performance and
                 to maintain a record of the performance evaluation to refer to if the Firm and the
                 concerned Consultant team member are considered for re-engagement.

        b.       The services of the Consultant shall be carried out by the personnel indicated in the Offer
                 Letter for the respective period of time in accordance with the TOR. Should it become
                 necessary for the Firm to replace any of the personnel under this Contract, the Firm shall
                 forthwith provide a replacement acceptable to CAI-Asia Center with comparable or better
                 qualifications. In the event that the person replaced is, at the time of replacement, in the
                 field, the Firm shall bear the travel and other related costs arising out of or incidental to the
                 replacement. The rate of remuneration and out-of-pocket expenses allowable for such
                 replacement shall be the same as agreed between CAI-Asia Center and the Firm for the
                 person being replaced.

                 In the event that any of the personnel is found by CAI-Asia Center to be incompetent,
                 guilty of misbehavior or incapable in discharging the assigned responsibilities, CAI-Asia
                 Center may request the Firm, at the expense of the Firm, to forthwith provide a
                 replacement with suitable qualifications and experience acceptable to CAI-Asia Center.

G-2.    Contractual Ethics – The CAI-Asia Center requires that Consultants and consulting firms under
        CAI-Asia Center financed contracts observe high ethics (refer to Section 2.12 of the CAI-Asia

                                                                                                           - 35 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                              .


                                                                                         Annex 17 cont’d.
       Center Operations Manual on Policies on Anti-Corruption). Consultants and consulting firms under
       CAI-Asia Center financed contracts shall also act in accordance with CAI-Asia Center’s policy on
       sexual harassment (refer to Section 6.7 of the CAI-Asia Center Operations Manual on Policies on
       Harassment). No fees, gratuities, rebates, gifts, commissions or other payments, other than those
       shown in this Contract have been given or received in connection with the selection process or in
       the Contract’s execution.

G-3.   Remuneration

       a.      The CAI-Asia Center pays the Consultant’s remuneration to the Firm. CAI-Asia Center
               pays remuneration for the period in which CAI-Asia Center requires the Consultant’s full
               time commitment to provide Consultancy Inputs. The payment is subject to the terms and
               conditions in Specific Conditions Clause 5, Appendix 3, General Conditions Clause 3,
               Sections b, c, d, and General Conditions Clause 5.

       b.      If Specific Conditions Clause 5 indicates a lump sum payment for the Services, the
               Consultant’s remuneration and OPE, except for any reimbursable expenses specified in
               Appendix 3, will be paid in lump sum in accordance with a payment schedule shown in
               Appendix 3.

       c.      If Specific Conditions Clause 5 does not indicate a lump sum and if the Consultancy
               Inputs are less than 30 calendar days or 22 working days, CAI-Asia Center pays the
               remuneration in the following way:

               i.        By calendar days for the time the Consultant spends on the services in the field,
                         that is, at a location other than the Consultant’s place of residence. The field time
                         includes the time required to travel to and from the assignment location via the
                         most direct route, CAI-Asia Center official holidays, and weekends except the
                         weekend that falls at the end of the assignment, and/or,

               ii.       By working days for the days that the Consultant works full-time to provide the
                         services at his or her home office, that is, the Consultant’s place of residence.

               iii.      The maximum number of paid working days in a calendar month is 22 for
                         purposes of this Contract.

       d.      If Specific Conditions Clause 5 does not indicate a lump sum and if the Consultancy
               Inputs are 30 calendar days or more, CAI-Asia Center pays remuneration as follows.

               i.        By person-months, including the time required to travel to and from the
                         assignment location via the most direct-route, CAI-Asia Center official holidays,
                         and weekends except the weekend that falls at the end of the assignment.

               ii.       The CAI-Asia Center calculates daily remuneration rates by dividing the monthly
                         rate by 30 for a calendar day and by 22 for a working day.

       e.      The CAI-Asia Center uses a remuneration system to determine the amount it offers for
               each assignment. If CAI-Asia Center re-engages the Consultant for a new assignment in
               the future, the remuneration it offers might be different from the rate for this assignment,
               which is indicated in Specific Conditions Clause 5.

G-4.   Out-of-Pocket Expenses (OPE) and Reimbursable Expenses

       a.      If Specific Conditions Clause 5 does not indicate a lump sum for Remuneration and OPE,
               CAI-Asia Center will pay OPE to the Firm, for actual costs substantiated by receipts of
               purchase or other supporting documents as specified in Appendix 3, unless otherwise
               specified. Details of the OPE are shown in Appendix 3 which may include the following:

                      i. Per Diem Allowance is a daily allowance for accommodation and subsistence
                         when the Consultant stays overnight at a place other than the Consultant’s Place
                         of Residence to perform the Services during the Consultant’s Term of

                                                                                                       - 36 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                            .


                                                                                         Annex 17 cont’d.
                     Engagement. Per Diems follow CAI-Asia Center’s current standard per diem rates
                     (see Appendix 3 for the per diem rate applicable to this Contract).
                  ii. Travel Cost covers all transportation costs the Consultant reasonably incurs in
                       travelling for the Services including the cost of transportation by appropriate
                       public transport between the Consultant’s Place of Residence and the nearest
                       convenient international airport. Air travel should be less than first class and by
                       the most direct route with connecting flights. Extra costs for non-work related
                       stop-over en-route exceeding the allowable travel time or for non-direct route
                       flights shall be at the Consultant’s own expense.

       b.     If Specific Conditions Clause 5 indicates a lump sum for Remuneration and OPE without
              reimbursable expenses, CAI-Asia Center will make payments following the payment
              schedule in Appendix 3 and in accordance with General Conditions Clause 5.

       c.     If Specific Conditions Clause 5 indicates a lump sum for Remuneration and OPE with
              reimbursable expenses, CAI-Asia Center will make payments following the payment
              schedule in Appendix 3 and in accordance with General Conditions Clause 5 and
              reimburse the Firm the actual cost of the reimbursable expenses.

G-5.   Payment

       a.     CAI-Asia Center makes payment in accordance with Specific Conditions Clause 5,
              General Conditions Clause 3, and General Conditions Clause 6 when applicable, within a
              reasonable period, normally (depending on General Conditions Clause 5-c) not more than
              30 days, unless otherwise specified in Appendix 3, from CAI-Asia Center’s receipt of the
              invoice from the Firm.

       b.     Unless otherwise specified in Appendix 3, the invoice shall be submitted to the User Unit
              each month with a statement showing the time the Consultant spent during that period
              performing the Services and with the supporting documents for the reimbursable
              expenses as required in Appendix 3.

       c.     Payment follows the User Unit certifying that Services are satisfactory.

       d.     CAI-Asia Center payments shall be made to the bank account as specified in Specific
              Conditions Clause 13.

       e.     CAI-Asia Center discourages frequent change of Firm’s bank account and requires an
              official request with justifications for such a change. The letter must be signed by the
              same person who signed this Contract on behalf of the firm or an authorized
              representative of the Firm. CAI-Asia Center does not accept a third party’s bank account
              other than the contracting party’s account.

       f.     The Firm shall submit the final invoice within 60 calendar days after the completion of the
              Term of Engagement or termination of the Contract. If no final invoice is received by CAI-
              Asia Center within 60 calendar days after the completion of the Term of Engagement or
              termination of the Contract, CAI-Asia Center shall make the final payment based on the
              Contract’s account record certified by the User Unit after the settlement of any pending
              matters, such as outstanding advance payment, Contract variations or handover of
              equipment by the Consultant to CAI-Asia Center if any equipment is purchased by the
              Consultant using CAI-Asia Center funds. CAI-Asia Center will then close the Contract
              account after the final payment. All payment claims to CAI-Asia Center, if any, from the
              Firm, shall be considered as irrevocably waived after the closure of the Contract account.

       g.     Total payment under this Contract shall not exceed the maximum amount indicated in
              Specific Conditions Clause 7 unless CAI-Asia Center issues a Contract variation order to
              amend the maximum amount.

       h.     Except for the monthly and final invoice which shall be submitted by the Firm to the User
              Unit, all requests for advances, queries and follow-ups regarding status of payments
              should be sent to the Billing Unit.

                                                                                                   - 37 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                 .


                                                                                              Annex 17 cont’d.
G-6.    Advances - The Firm may request an advance on OPE up to the amount as indicated in Specific
        Conditions (Specific Conditions Clause 10). The advance will be recovered in the number of
        installments specified in Specific Conditions Clause 10 starting from the first billing. The User Unit
        must approve additional advance(s) and recovery is adjusted.

G-7.    Insurance

        a.       Check Specific Conditions Clause 8 on applicability

        b.       Where CAI-Asia Center engages the Consultant through a firm, CAI-Asia Center shall
                 undertake no responsibility for life, accident, travel, or any other insurance coverage for
                 the employees or sub-contractors of the Consultant or for the dependents of any such
                 persons who may travel to the duty station or elsewhere for the purposes of the Services.
                 The Firm shall

                 i.        take out and maintain adequate insurance against loss of or damage to
                           equipment the Firm or Consultant purchases in whole or in part with funds
                           provided by CAI-Asia Center, if any. The proceeds of such insurance shall be
                           payable in a currency freely usable to replace or repair such equipment.

                 ii.       take out and maintain adequate professional indemnity insurance and insurance
                           against claims by third parties resulting from acts performed in carrying out the
                           Services.

                 iii.      take out any other necessary insurance coverage for the Consultant.

G-8.    Language - All reports, unless otherwise specified in the TOR, and all communication related to
        the execution of this Contract shall be in English language.

G-9.    Reports - The Consultant shall submit to the User Unit reports and/or other written and electronic
        documents as required in the TOR. All reports, notes drawings, specifications, statistics, plans and
        other documents and data compiled or made by the Consultant or the Expert while performing the
        Services shall be the sole and exclusive property of CAI-Asia Center. Upon Contract termination or
        conclusion, CAI-Asia Center has the right to direct the disposal of such property which may be
        made available to the general public in CAI-Asia Center’s sole discretion. The Consultant may
        retain copies of such documents and data but shall not use the same for purposes unrelated to the
        Services without the prior approval of CAI-Asia Center. After concluding the Term of Engagement,
        the Consultant shall continue to cooperate with CAI-Asia Center to clarify or explain any contents in
        the reports the Consultant submits.

G-10.   Intellectual Property - The Firm shall ensure that all its Services and all goods and services
        (including without limitation all computer hardware, software, and systems) procured by the
        Consultant from CAI-Asia Center funds or used by the Consultant in the carrying out of the
        Services do not violate or infringe on any industrial property or intellectual property right or any third
        party claim. The Consultant, and the Firm if the Consultant is engaged through a firm, shall
        indemnify CAI-Asia Center from and against any and all claims, liabilities, obligations, losses,
        damages, penalties, actions, suits, proceedings, demands, costs, expenses, and disbursements
        that may be imposed on, incurred by, or asserted against CAI-Asia Center for actions related to
        performing the Services. These include the Consultant’s or Firm’s infringing or allegedly infringing
        copyright, trademark, patent, or other protected right.

G-11.   Public Statement and Commitment - The Firm shall act discretely and refrain from making public
        statements about the Services or any CAI-Asia Center projects without CAI-Asia Center’s prior
        written approval. The Consultant, and the Firm if the Consultant is engaged through a firm, has no
        authority to commit CAI-Asia Center in any capacity and shall make this clear as circumstances
        warrant. The Consultant should refrain from any political activity involving the assignment or in the
        country where the project takes place during the Term of Engagement. The Consultant shall not
        take any action, such as using business cards or stationary carrying the name of CAI-Asia Center,
        which may imply that the Consultant is a staff member of CAI-Asia Center. The Consultant,
        however, may use the CAI-Asia Center-consultant-business-card format as shown at


                                                                                                           - 38 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                .


                                                                                           Annex 17 cont’d.
G-12.   Disclosure of Information - All materials produced or acquired under the terms of the
        appointment shall remain the property of the CAI-Asia Center. Furthermore the CAI-Asia Center
        retains the exclusive right to publish or disseminate reports arising from such materials.

G-13.   Equipment - It is agreed that the Consultant, unless otherwise approved by CAI-Asia Center, shall
        use, when necessary, his/her own computing tools, laptop or notebook for performing the Services.
        In special cases, CAI-Asia Center may provide funds under the Contract for the Firm/Consultant to
        purchase equipment for use by the Consultant during the Term of Engagement. Such equipment
        shall remain as CAI-Asia Center’s property and should be handed over to CAI-Asia Center, unless
        otherwise instructed by CAI-Asia Center, upon the termination of the Contract.

G-14.   Relationship of the Parties - Nothing contained in this Contract shall be construed as establishing
        any relationship other than that of independent contractor between CAI-Asia Center and the
        Consultant, or the Firm if the Consultant is engaged through a firm.

G-15.   Subcontracting - The Firm shall not assign or sub-let the Contract or any part of it without CAI-
        Asia Center’s prior written consent for an approved sub-contract.

G-16.   Disability or Incompetence of the Consultant - CAI-Asia Center’s engagement of the Consultant
        is conditional upon the Consultant’s or the Firm’s confirmation to CAI-Asia Center that the
        Consultant is healthy and without physical or mental disability that may interfere with performing the
        Services. The Consultant shall, if called upon to do so, give CAI-Asia Center any medical or other
        evidence as CAI-Asia Center may reasonably require. If at any time in CAI-Asia Center’s opinion,
        whether for reasons of health or otherwise, the Consultant is unable to perform or to complete the
        Services adequately, CAI-Asia Center may terminate this Contract.

G-17.   Unusual Incidence - The Consultant shall report immediately to CAI-Asia Center any accident
        involving personal injury or property damage during the Term of Engagement. The Consultant shall
        also report to CAI-Asia Center immediately any circumstances which might hinder or prejudice
        performance of the Services.

G-18.   Visas - The Consultant shall obtain visa and other approvals from governmental authorities
        required under applicable laws and regulations of the Assignment Location to permit the Consultant
        to carry out the Services and, if applicable, shall obtain visas and other required approvals from the
        relevant governmental authorities for any dependents of such Consultant physically present in the
        Assignment Location during the Term of Engagement.

G-19.   Suspension; Termination of Contract

        a.       The CAI-Asia Center may suspend performance of the whole or part of the Contract, or
                 the disbursement of funds hereunder, for a period as CAI-Asia Center deems necessary if
                 CAI-Asia Center determines that a condition has arisen which, in the reasonable opinion
                 of CAI-Asia Center, interferes, or threatens to interfere, with the effective carrying out of
                 the assignment or accomplishing the Services for a specified period of time not to exceed
                 thirty (30) working days; Notwithstanding the above, this Contract may be terminated by
                 CAI-Asia Center:

                 i.       upon the expiration of a period of time of not less than 15 (fifteen) calendar days
                          after written notice of its intention to terminate has been given to the Firm; or

                 ii.      immediately if CAI-Asia Center determines that the Consultant, or the Firm, has
                          engaged in unethical behaviour, or corrupt or fraudulent practices- as defined by
                          CAI-Asia Center in its Anticorruption Policy and in Section 1.05 of the Guidelines
                          on the Use of Consultants by the Asian Development Bank and its Borrowers.

                 iii.     immediately if CAI-Asia Center determines that the Services to date are so
                          deficient as to demonstrate that the Services cannot be satisfactorily performed.

        b.       The Firm may terminate the Contract if there are circumstances beyond the Consultant’s
                 reasonable control which make it impossible to carry out the Services. The Firm must
                 substantiate such reasons in writing and CAI-Asia Center must accept the justification in

                                                                                                        - 39 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                 .


                                                                                            Annex 17 cont’d.
                 order that such a termination can occur. Upon CAI-Asia Center’s confirmation in writing, or
                 the failure of CAI-Asia Center to respond to such submission of justification within fifteen
                 (15) days from receipt, the Consultant shall be relieved from performing the Services and
                 this Contract shall be terminated.

        c.       Termination Procedure - Upon termination of the Contract or CAI-Asia Center giving such
                 notice, the Consultant and the Firm shall immediately bring the Services to an orderly
                 close and reduce expenditures to a minimum. Unless the Consultant’s default causes
                 termination, the Firm, is entitled to full reimbursement for costs duly and reasonably
                 incurred prior to the termination date. Reasonable costs for the orderly termination of
                 Services, including return travel by the Consultant, are reimbursable. If termination is
                 occasioned by the Consultant’s or the Firms’ default, the Firm, or CAI-Asia Center as the
                 case may be, shall be entitled to the difference between:

                 i.        the costs, direct or indirect, the Consultant or the Firm incurs in the performance
                           of the Services up to the date of termination; and

                 ii.       the aggregate of all sums CAI-Asia Center paid to the Firm under the Contract.

G-20.   Entire Agreement and Contract Amendment - The Contract as amended from time to time under
        the foregoing provisions supersedes all prior arrangements whether written or oral, expressed or
        implied. The amendment, whether partly or wholly, of any of the Contract’s terms or conditions shall
        be valid only if in writing and signed by CAI-Asia Center’s Executive Director.

G-21    Notices and Requests - Any notice or request required or permitted under this Contract shall be in
        writing. Such notice or request shall be deemed to be fully given or made when it is delivered by
        hand, mail, or fax to the intended party. The authorized party under this Contract for CAI-Asia
        Center is the Executive Director (name and address are in Specific Conditions Clause 9) and the
        authorized party for the Consultant is the person who confirms the acceptance of the Offer Letter
        and the address is indicated in the Offer Letter, unless otherwise notified by the Firm.

G-22.   Delays - No failure or delay on the part of CAI-Asia Center in exercising any power or right under
        this Contract shall operate as a waiver of that power or right, nor shall any single or partial exercise
        of such power or right preclude any other or further exercise or any other power or right under this
        Contract.

G-23.   Inspection and Audit - The Firm agree to allow CAI-Asia Center or a representative authorized by
        CAI-Asia Center to inspect and audit any accounts, documents, and records relating to this
        Contract.

G-24.   Settlement of Disputes

        a.       The Firm and CAI-Asia Center agree that avoidance or early resolution of disputes is
                 crucial for smoothly executing this Contract and completing the assignment. Each party
                 should settle amicably all disputes arising out of or connected with this Contract or its
                 interpretation through the following procedure: each party’s authorized representative will
                 examine the matter(s) in dispute and consider available options to resolve such dispute.
                 The parties will seek agreement on the most reasonable option to resolve the dispute and
                 act appropriately to that end.

                 b.    Any dispute or difference arising out of this Contract or in connection with it which
                       cannot be amicably settled between the parties under (a) above shall be finally settled
                       under the Rules of Arbitration of the International Chamber of Commerce by one or
                       more arbitrators appointed under the said Rules. The arbitration shall take place in
                       Manila, Philippines. The resulting award shall be final and binding on the parties and
                       shall replace other remedies. The language of arbitration shall be English and each
                       party shall bear its own costs.




                                                                                                         - 40 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                               .


                                                                                             Annex 17 cont’d.

                                                  Appendix 2

                            TERMS OF REFERENCE CONTRACT NO. ________

                                              Appendix 3
                                 LIST OF EXPERTS CONTRACT NO. ______

                                          Appendix 3-1
                              PERSONNEL SCHEDULE CONTRACT NO._____


                                            Appendix 4
                               PAYMENT SCHEDULE CONTRACT NO. ______


                                                                                                          US$
      1.   Within 15 working days from CAI-Asia Center’s receipt of the Consultant’s remittance
           instructions, and CAI-Asia Center’s issuance of the Notice to Proceed (NTP)
      2.   Within 15 working days from CAI-Asia Center’s receipt of the Consultant’s claim which
           should be submitted upon completion of the project, subject to certification by CAI-Asia
           Center’s User Division] that the Services have been satisfactorily completed and the
           required reports/outputs have been accepted by CAI-Asia Center.
                                                                                                                   3
                                                                                                               xxxxx
      TOTAL




                                            The CAI-Asia Center
                                          FAX-BACK REPLY FORM

ADDRESEE:                                                           DESTINATION FAX:



DATE:                                                               PAGE ONE OF:

                                     CONFIRMATION OF ACCEPTANCE

Contract:
Project:
(Please mark the relevant box/es and sign your confirmation over the corresponding name)


Remarks:

The Consultants assigned to this project have carefully read your offer letter dated __ _________and all its
attachments. I accept the offer on behalf of ___________, indicated below is our firm's payment remittance
information.




3
    Includes remuneration fees of the experts and out of pocket expense for the international travel
           (airfares, per diem allowance & miscellaneous).
                                                                                                       - 41 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                    .


         ____________________________________                           ____________________
                                                                                  Date




                                 Payment Remittance Information
                   For USD                                     For Other Currencies
Bank Name:                                      Bank Name:
Address:                                        Address:

Payee:
Account No.:


                                                    Payee:
                                                    Account No.:
               NOTE: Instead of fax, you may also scan this page and e-mail to _______




                                                                                               - 42 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                                .


       Annex 21.            Performance Evaluation of Individual Consultants Sample Form


                Performance Evaluation of Consultants Form

Assignment Name           :
Name of Expert            :                                  Citizenship                  :
TA ID No.                 :                                  Period of Assignment
Contract No.              :                                               From            :
Consultant Type           : Individual or                                 To              :
                          Staff Consultant                   Person/days                  :
                                                             Division                     :
                                                             Requested by                 :
Nature of Assignment :

                                                                             II. RATING
                 I. CRITERIA                     Excellent    Satisfactory    Marginal        Unsatisfactory   Not Applicable
1. Practical knowledge of and experience
   in the field concerned

2. Ability to adapt knowledge and
   experience to assigned tasks

3. Initiative

4. Productivity

5. Ability to work with others

6. Adherence to the CAI-Asia Center's
   and donor working regulations

7. Quality of work completed

8. Others (specify)

       III. OVERALL PERFORMANCE

Reviewer's Comments


FAD Comments



Evaluated by: (person who supervised           Date:         Endorsed by: Division Manager of user Date:
              the consultant)                                            division


          Name and Signature
Reviewed by FAD                                              Action recommended                                Date:




                                                                                                                       - 43 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                                  .


             Annex 22.                   Perrformance Evaluation of Consulting Firm Sample Form


                 Performance Evaluation Form for Consulting Firms

TA No. Country and Title :                                                      Rating: E- Excellent S-Satisfactory
Contract No.         :                                                                 M- Marginal    U-Unsatisfactory
                                                                                       n/a - not applicable


I. Firms Evaluation Criteria (if applicable)
                                         Rating                  Comments (for marginal or unsatisfactory ratings (if any)
                                    E S M U                n/a
A. Technical
1. Analysis of background data
2. Appropriateness of methodology
3. Initaitive, flexibility, innovation
4. Design solutions
5. Performance on procurement
B. Economic and Financial
1. Cost estimate reliability
2. Economic analysis
3. Financial analysis
C. Project Specific
1. Technology transfer
2. Training functions
3. Advisory functions
4. Institutional/Management Analysis
D. Project Management
1. Understanding of procedures
2. Adherence to TOR
3. Compliance with work program
4. Presentation of results
5. Quality of reports
6. Personnel Stability
7. Team leadership
8. Competence/conduct of experts
9. Relations with executing agency
10. Contract Administration


II. Overall Performance                                          III. Team Member's Evaluation
Comments on overall performance:



    Name/Signature of Evaluator/s                                   Name/Signature of user Division Manager




Name/Signature of Division Manager, FAS                          Name/Signature of the Executive Director




                                                                                                                             - 44 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                         .


Team Members Evaluation
        Name                        Rating   COMMENTS for marginal or unsatisfactory ratings (if any)
                                E   S M U




                                                                                                    - 45 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                .


    Annex 23.      Sample Administrative Offenses and Corrective Actions/Penalties

                                       Offenses                                 Penalty
                                    st
Grave         1.  Dishonesty (1 offense)                            Dismissal
                                              st
Offenses      2.  Gross neglect of duty (1 Offense                  Dismissal
              3.  Grave Misconduct (1st Offense)                    Dismissal
              4.  Being Notoriously Undesirable 1st Offense :       Dismissal
              5.  Conviction of a crime involving: moral            Dismissal
                   turpitude (1st Offense)
              6. Falsification of Official documents 1st            Dismissal
                   Offense
              7. Physical or mental incapacity or disability        Dismissal
                   due to immoral or vicious habits (1st
                   Offense)
              8. Engaging directly or indirectly in partisan        Dismissal
                   political activities by one holding non-
                                        st
                   political office (1 Office)
              9. Receiving for personal use of a fee, gift or       Dismissal
                   other valuable thing in the course of official
                   duties or in connection therewith when such
                   a fee, gift or other valuable things is given
                   by any person in the hope
                   or expectations of receiving a favor or better
                   treatment than that accorded to other
                   persons, or committing acts punishable
                   under the anti-graft law. (1st Offense)
              10. Contracting loans of money or other               Dismissal
                   property from persons with whom the office
                   of the employee has business relations. (1st
                   Offense )
              11. Soliciting or accepting directly or indirectly,   Dismissal
                   any gift, gratuity, favor, entertainment, loan
                   or anything of money or monetary value
                   which in
                   the course of his official duties or in
                   connection with any operation being
                   regulated by, or any transaction which may
                   be affected by the
                   functions of his Office. The propriety or
                   impropriety of the foregoing shall be
                   determined
                   by its value, kinship, or relationship between
                   the giver and the receiver and the
                   motivation of thing of money value is one
                   which is evidently
                   or manifestly excessive by its very nature.
                                 st
              12. Nepotism (1 offense)                              Dismissal
                                                                     st
              13. Disgraceful and immoral conduct                   1 offense -six months and one
                                                                    day to one year suspension
                                                                     nd
                                                                    2 offense -Dismissal
                                                                     st
              14. Inefficiency and incompetence in the              1 offense -six months and one
                   performance of official duties                   day to one year suspension
                                                                     nd
                                                                    2 offense -Dismissal
                                                                     st
              15. Frequent unauthorized absences or                 1 offense -six months and one
                   tardiness in reporting for duty, loafing or      day to one year suspension
                                                                                           - 46 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                  .

                                                                       nd
                   frequent unauthorized absences from duty           2 offense -Dismissal
                   during regular office hours.
                                                                       st
              16. Refusal to perform official duty                    1 offense -six months and one
                                                                      day to one year suspension
                                                                       nd
                                                                      2 offense -Dismissal
                                                                       st
              17. Gross insubordination                               1 offense -six months and one
                                                                      day to one year suspension
                                                                       nd
                                                                      2 offense -Dismissal
                                                                       st
              18. Conduct grossly prejudicial to the best             1 offense -six months and one
                   interest of the service                            day to one year suspension
                                                                       nd
                                                                      2 offense -Dismissal
                                                                       st
              19. Directly or indirectly having financial             1 offense -six months and one
                   transaction and material interest in any           day to one year suspension
                                                                       nd
                   requiring the approval of his office               2 offense -Dismissal
                                                                       st
              20. Owning, controlling, managing or accepting          1 offense -six months and one
                   employment as officer, employee,                   day to one year suspension
                                                                       nd
                   consultant, counsel, broker, agent trustee,        2 offense -Dismissal
                   or nominee in any private enterprise,
                   regulated, supervised or licensed by his
                   office, unless expressly allowed by law.
                                                                       st
              21. Disclosing or misusing confidential or              1 offense -six months and one
                   classified information officially known to him     day to one year suspension
                                                                       nd
                   by reason of his office and not made               2 offense -Dismissal
                   available to the public, to further his private
                   interests or give undue advantage to
                   anyone, or to prejudice the public interest.
                                                                       st
              22. Obtaining or using any statement filed under        1 offense -six months and one
                   the Code of Conduct and Ethical Standards          day to one year suspension
                                                                       nd
                   for Public Officials and Employees for any         2 offense -Dismissal
                   purpose contrary to morals or public policy
                   or any commercial purpose other than by
                   news and communications media for
                   dissemination to the general public.
                                                                       st
              23. Recommending any person to any position             1 offense -six months and one
                   in a private enterprise which has a regular        day to one year suspension
                                                                       nd
                   or pending official transaction with his office,   2 offense -Dismissal
                   unless such recommendation or referral
                   is mandated by (1) law, (2) international
                   agreements, commitment and obligation, or
                   as part of the function of his office.

Less grave    24. Simple neglect of duty                              1st Offense - one month and one
offenses                                                              day to one year suspension
                                                                       nd
                                                                      2 offense- Dismissal
              25. Simple misconduct                                   1st Offense - one month and one
                                                                      day to one year suspension
                                                                       nd
                                                                      2 offense- Dismissal
              26. Gross discourtesy in the course of official         1st Offense - one month and one
                  duties                                              day to one year suspension
                                                                       nd
                                                                      2 offense- Dismissal
              27. Violation of existing Civil Service Law and         1st Offense - one month and one
                   rules of serious nature                            day to one year suspension
                                                                       nd
                                                                      2 offense- Dismissal
              28. Insubordination                                     1st Offense - one month and one
                                                                      day to one year suspension

                                                                                             - 47 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                 .

                                                                      nd
                                                                     2 offense- Dismissal
              29. Habitual drunkenness                               1st Offense - one month and one
                                                                     day to one year suspension
                                                                      nd
                                                                     2 offense- Dismissal
              30. Unfair discrimination in rendering public          1st Offense - one month and one
                   service due to party affiliation or preference    day to one year suspension
                                                                      nd
                                                                     2 offense- Dismissal
                                                                      st
Light         31. Discourtesy in the course of official duty         1 offense- Reprimand
                                                                      nd
Offenses                                                             2 offense – suspension from 1 -
                                                                     30 days
                                                                      rd
                                                                     3 offense -dismissal
                                                                      st
              32. Improper or unauthorized solicitation of           1 offense- Reprimand
                                                                      nd
                   contributions from subordinate employee           2 offense – suspension from 1 -
                                                                     30 days
                                                                      rd
                                                                     3 offense -dismissal
                                                                      st
              33. Violation of reasonable office rules and           1 offense- Reprimand
                                                                      nd
                   regulations                                       2 offense – suspension from 1 -
                                                                     30 days
                                                                      rd
                                                                     3 offense -dismissal
                                                                      st
              34. Frequent unathorized tardiness (Habitual           1 offense- Reprimand
                                                                      nd
                   tardiness)                                        2 offense – suspension from 1 -
                                                                     30 days
                                                                      rd
                                                                     3 offense -dismissal
                                                                      st
              35. Gambling prohibited by law                         1 offense- Reprimand
                                                                      nd
                                                                     2 offense – suspension from 1 -
                                                                     30 days
                                                                      rd
                                                                     3 offense -dismissal
                                                                      st
              36. Refusal to render overtime service                 1 offense- Reprimand
                                                                      nd
                                                                     2 offense – suspension from 1 -
                                                                     30 days
                                                                      rd
                                                                     3 offense -dismissal
                                                                      st
              37. Disgraceful, immoral or dishonest conduct          1 offense- Reprimand
                                                                      nd
                   prior to entering the service                     2 offense – suspension from 1 -
                                                                     30 days
                                                                      rd
                                                                     3 offense -dismissal
                                                                      st
              38. Borrowing money by Superior officers               1 offense- Reprimand
                                                                      nd
                                                                     2 offense – suspension from 1 -
                                                                     30 days
                                                                      rd
                                                                     3 offense -dismissal
                                                                      st
              39. Lending money at usurious rates                    1 offense- Reprimand
                                                                      nd
                                                                     2 offense – suspension from 1 -
                                                                     30 days
                                                                      rd
                                                                     3 offense -dismissal
                                                                      st
              40. Willful failure to pay just debts or willful       1 offense- Reprimand
                                                                      nd
                  failure to pay taxes due to the government         2 offense – suspension from 1 -
                                                                     30 days
                                                                      rd
                                                                     3 offense -dismissal
                                                                      st
              41. Lobbying for personal interest or gain in          1 offense- Reprimand
                                                                      nd
                   legislative halls and offices without authority   2 offense – suspension from 1 -
                                                                     30 days
                                                                      rd
                                                                     3 offense -dismissal
                                                                      st
              42. Promoting the sale of tickets in behalf of         1 offense- Reprimand
                                                                      nd
                   private enterprises that are not intended for     2 offense – suspension from 1 -
                   charitable or public welfare purposes and         30 days
                                                                      rd
                   even in the latter cases, there is no prior       3 offense -dismissal

                                                                                            - 48 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                      .


                   authorization
                                                                         st
              43. Failure to act promptly on letters and                1 offense- Reprimand
                                                                         nd
                   requests within 15 days from receipt                 2 offense – suspension from   1-
                                                                        30 days
                                                                         rd
                                                                        3 offense -dismissal
                                                                         st
              44. Failure to process documents and complete             1 offense- Reprimand
                                                                         nd
                   action on documents and papers within a              2 offense – suspension from   1-
                   reasonable time from preparation thereof             30 days
                                                                         rd
                                                                        3 offense -dismissal
                                                                         st
              45. Failure to attend to anyone who wants to              1 offense- Reprimand
                                                                         nd
                   avail himself of the service of the office, or       2 offense – suspension from   1-
                   act promptly and expeditiously on public             30 days
                                                                         rd
                   transactions                                         3 offense -dismissal
                                                                         st
              46. Engaging in private practice of his profession        1 offense- Reprimand
                                                                         nd
                   unless authorized by the constitution, law or        2 offense – suspension from   1-
                   regulation, provided from that such practice         30 days
                                                                         rd
                   will not conflict with 3rd his official functions.   3 offense -dismissal
                                                                         st
              47. Pursuit of private business, vocation or              1 offense- Reprimand
                                                                         nd
                   profession without the permission required           2 offense – suspension from   1-
                   by Civil Service rules and from 1-30 days            30 days
                                                                         rd
                   regulations. 3rd                                     3 offense -dismissal




                                                                                              - 49 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                           .


                                          Annex 24.      Purchase Request (PR)
                        CAI-ASIA Center
                                                                                                        PR. No.   06-10-001
                                                  PURCHASE REQUEST (PR)

Requestor:                                            Staff No.:          Division:                   Date Requested:

Purpose:                                                                                              Date Needed:


Item Quantity             Unit                              Description                                      Charge to:




Special Instructions:




Requested by:                                                             Approved by:



Signature Over Printed Name                                               Division Head/Executive Director




                                                                                                                      - 50 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                           .


Annex 25.             Purchase Order (PO)


               CAI-ASIA Center
                                                                                PO No.        07-10-001
                                            PURCHASE ORDER

TO:                                                                    Date:

                                                              Date Needed:




   Quantity           Unit             Particulars              Unit Cost      Currency           Amount




Terms and Conditions / Notes:




Prepared by / Date:                                          Approved by:



Signature Over Printed Name                                  Division Head / Executive Director




                                                                                                      - 51 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                          .


Annex 26.          Official Receipt (OR)

                 CAI - ASIA CENTER                                                                       OR 00001
                 35th Floor, Robinsons -Equitable Tower
                 ADB Avenue corner Poveda St.
                 Ortigas, Pasig City
                                                       OFFICIAL RECEIPT
                                       Unit 343, Mile Long Bldg., Amorsolo St. Makati City

IN PAYMENT OF THE FOLLOWING                                                                     Date:
                   Amount
                                             Received from __________________________________________________

                                             Address ______________________________________ TIN ______________

                                             the sum of ______________________________________________________

                                             _____________________________________________ ( _________________ )

                                                                                                     VAT _____________
         Total                               in full or in partial settlement of your accounts indicated herein.
Cash             _______________
Check Amount     _______________             Prepared by:
Check No.        _______________
Bank             _______________             _________________________________
                                                     Authorized Signature



Solomon Cash Receipt Setup




                                                                                                                     - 52 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                  .


Annex 27.     Certificate of Donation




                                             - 53 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                       .



             CAI-ASIA Center
             35th Floor, Robinsons -Equitable Tower
             ADB Avenue corner Poveda St.
             Ortigas, Pasig City

                             CERTIFICATE              OF    DONATION



This is to certify the I/we ______________________________________ voluntarily donating the
cash/services/property indicated below to the CLEAN AIR INITIATIVE FOR ASIAN CITIES (CAI-ASIA)
CENTER INC. I/We certify that it is understood that the donated cash/services/property will be vested in
the Center. That I/we will have no further right, title, interest in, or claim against such donation.


A. DONOR Information

Name:        _________________________________                Phone Number:       _______________

Address:     _________________________________                Fax Number:         _______________

             _________________________________                E-mail Address:     _______________


B. Donation Description

Description of Donation:                                      Value / Amount of Donation:
  _______________________________________                        ____________________________

   _______________________________________                       ____________________________

   _______________________________________                       ____________________________


C. Donation Date

           Donation Date:   ________________________________________

This is the date when the donation is formally donated to CLEAN AIR INITIATIVE FOR ASIAN CITIES
(CAI-ASIA) CENTER, INC.


D. Acceptance by the DONEE

The CLEAN AIR INITIATIVE FOR ASIAN CITIES (CAI-ASIA) CENTER INC. accepts the donation
indicated above.

ACCEPTED FOR CLEAN AIR INITIATIVE FOR ASIAN CITIES (CAI-ASIA) CENTER INC.

Name:        ____________________________          Acceptance Date:       ____________________

Signature: ____________________________            Title:     _____________________________




                                                                                                 - 54 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                                                 .




     Annex 28.              Request for Petty Cash (RPC)


             CAI-ASIA Center
                                                                                                                             RPC No. 06-10-001
                                                    REQUEST FOR PETTY CASH (RPC)

Requestor:                                                        Staff No.:             Division:                          Date:


Purpose:


Details:                                                                                 Currency:             PhP                   Amount




Note: This form shall be used for requests for funds not exceeding US$100 (or equivalent currency), otherwise a Request for Payment shall be prepared
instead. The amount shall be liquidated immediately and no later than 30 days from receipt of the petty cash. The Center is authorized to deduct in full
from the nearest payroll if a liquidation report for the advance is not submitted within 30 days from date of receipt hereof.


Amount Received by / Date Received:                                                      Approved by:



Signature Over Printed Name                                                              Division Head/Executive Director




                                                                                                                                          - 55 -
     CAI-Asia Center Operations Manual: ANNEXES
     Revised June 2010
                                                                                                                  .


Annex 29.            Fund Liquidation (FL)


               CAI-ASIA Center

                                              FUND LIQUIDATION (FL)

Name of Staff:                                      Staff No.:          Division:                Date:


   For Reimbursement to Staff                                              Liquidation of PCF    PCF Ref.
Details of Cash Purchases:
                                                     O.R./Invoice No.      Expense        Account
    Date                        Particulars           (see attached)       Account         Code Currency         Amount




Remarks:                                                                Total Expenses
                                                                        Petty Cash Amount
                                                                        Due to (from) Staff

Prepared by / Date:                                                     Approved by:



Signature Over Printed Name                                             Division Head / Executive Director




                                                                                                             - 56 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                   .



Annex 30.          Cash Advance Clearance



             CAI-ASIA Center

                                         CASH ADVANCE CLEARANCE FORM

                                                                                                     Date:



Based on the liquidation report submitted by __________________________________________ (name of staff), this is to

certify that the above CAI-Asia Center staff has fully liquidated his/her advances from the Center dated ________________

amounting to _____________________, with reference document no./s ___________________.


Custodian:



Signature Over Printed Name




                                                                                                             - 57 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                         .



Annex 31.          Cash Position Report




Cash Position Report
For the Period ________________________

                               BEGINNING                                      ENDING     CHECKS      AVAILABLE   ACTUAL BANK
  BANK NAME & BRANCH            BALANCE       RECEIPTS       DISBURSEMENTS   BALANCE   FOR FUNDING    BALANCE      BALANCE

PESO ACCOUNTS
  Bank account 1
  Bank account 2




TOTAL (PhP)                               -              -             -           -           -            -                -



DOLLAR ACCOUNTS
  Bank account 1
  Bank account 2




TOTAL (US$)                               -              -             -           -           -            -                -




                                                                                                                    - 58 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                                            .



Annex 32.           Projected Cash Flow Report




Projected Cash Flows
For the Period _______________________

                                 Week1         Week2       Week3       Week4       Week5       Week6       Week7         Total
Cash Balance, beg. of week      160,000.00

Cash Inflows:
Grant1                          200,000.00                                                                              200,000.00
                                                                                                                               -
                                                                                                                               -
                                                                                                                               -
Total Cash Inflows              200,000.00             -           -           -           -           -           -    200,000.00

Cash Outflows:
Professional fees               750,000.00                                                                              750,000.00
Office rental                   250,000.00                                                                              250,000.00
Materials                                                                                                                      -
                                                                                                                               -
                                                                                                                               -
                                                                                                                               -
                                                                                                                               -
                                                                                                                               -
                                                                                                                               -
                                                                                                                               -
Total Cash Outflows            1,000,000.00            -           -           -           -           -           -   1,000,000.00

Net Cash Inflow (Outflow)       (800,000.00)           -           -           -           -           -           -    (800,000.00)


External Funds Requirement


Cash Balance, end of week       (640,000.00)           -           -           -           -           -           -    (800,000.00)




                                                                                                                                       - 59 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                                    .



Annex 33.            Request for Cash Advance (RCA)


             CAI-ASIA Center
                                                                                                                             RCA No. 06-10-001
                                                  REQUEST FOR CASH ADVANCE (RCA)

Requestor:                                                        Staff No.:             Division:                          Date:


Purpose:


Details (attach separate details when necessary):                                        Currency:            US$                       Amount




Note: This form shall be used for requests for all cash advances (other than travel advances and advances from Petty Cash) and should be prepared
instead of a Request for Payment Form. The amount shall be settled/liquidated immediately and no later than 30 days from utilization of the advance.
Unused cash advances should be returned immediately. The Center is authorized to deduct in full from the nearest payroll if a liquidation report for the
advance is not submitted within 30 days from date of receipt hereof.


Amount Received by / Date Received:                                                      Approved by:



Signature Over Printed Name                                                              Division Head/Executive Director




                                                                                                                             - 60 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                    .


Annex 34.             Cash Advance Liquidation (CAL)
            CAI-ASIA Center

                                         CASH ADVANCE LIQUIDATION (CAL)

Name of Staff:                                   Staff No.:                  Division:                Date:

                                                                                                      Amount
Details of Expenses / Purchases (submit separate details when necessary):
                                                  O.R./Invoice
                                                    No. (see                   Expense      Account
   Date                   Particulars              attached)    Charge to:     Account       Code     Currency     Amount




Remarks:                                         Total Expenses
                                                 Amount of Cash Advance
                                                 Due to (from) Staff

Prepared by / Date:                                                          Approved by:



Signature Over Printed Name                                                  Division Head / Executive Director




                                                                                                               - 61 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                  .



                                    Annex 35.      Journal Voucher (JV)

             CAI-ASIA Center
                                                                                       JV No.       07-01-001
                                             JOURNAL VOUCHER

                                                               Original   Exchange
 Account                                     Document          Currency    Rate to
  Code            Account Name/Particulars   References        Amount       US$      Debit (US$)   Credit (US$)




                                                                                             -             -

Prepared by / Date:                                       Approved by:



Accountant                                                Head of FAS




                                                                                                         - 62 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                     .


                            Solomon Journal Voucher Setup




                      Solomon Recurring Journal Voucher Setup




                                                                - 63 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                                           .


Annex 36.             Request for Payment (RFP)


             CAI-ASIA Center

                                               REQUEST FOR PAYMENT (RFP)

Pay to:                                                                             Date Requested:          Due Date:


Amount Payable (in words):                                                          Currency:         US$                   Amount


Nature of Payment:                                                  Attachments:            Invoice     Billing Statement      O.R.
                                                                         Delivery Report          Purchase Order        Agreement

                                                O.R./Invoice No.                     Expense     Account
   Date                 Particulars                                  Charge to:                               Currency         Amount
                                                 (see attached)                      Account      Code




RFP's received up to Monday will be paid on Thursday of the same week. RFP's received after Monday cut-off will be scheduled for payment on
Thursday of next week. Please attach complete documentation to avoid delay in processing of payment.


Requested by:                                  Approved by:                                     Processed by:



Signatue Over Printed Name                     Division Head/Executive Director                 Accounting Staff




                                                                                                                                      - 64 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                               .


Annex 37.             Check Voucher (CV)



               CAI-ASIA Center
                                                                                                        CV No. 06-10-0001
                                              CHECK VOUCHER (CV)

Pay to:                                                                          Date Requested:        Due Date:
                                                                                 October 10, 2006       October 20, 2006
Amount Payable (in words):                                                       Currency:     US$            Amount
Two thousand U.S. dollars                                                                                         2,000.00
Particulars:                                                            Bank / Check Number:                 CTB 03324
Professional fee                                                  Remarks:
                                                       Original   Exchange
  Account                                              Currency    Rate to
   Code                   Account Name                 Amount       US$              Debit (US$)            Credit (US$)
               Professional fees              Php      100,000.00    50                     2,000.00
               Creditable withholding taxes             10,000.00    50                                               200.00
               CIB - Citibank Main                      90,000.00    50                                             1,800.00




                                                                                             2,000.00               2,000.00

Prepared by:                                        Reviewed and Approved by:                Payment Received by / Date:


Accounting Staff                                    Finance Mgr. / Head of FAS               Authorized Signature




                                                                                                                      - 65 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                               .


                                Solomon Voucher Setup




                            Solomon Check Payment Setup




                                                          - 66 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                            .


                            Annex 38.        Chart of Accounts

   Account Code                                   Account Title

         1000        Current Assets
         1100           Cash and Cash Equivalents
         1110                Petty cash fund1
         1120                Petty cash fund2
         1130                Cash in Bank1
         1140                Cash in Bank2
         1150                Cash in Bank3
         1210                Short-term Investment1
         1220                Short-term Investment2
         1300           Receivables
         1310                Advances to officers and staff
         1320                Advances to suppliers
         1330                Others
         1500        Property and Equipment
         1510           Leasehold improvements
         1520           Furniture, fixtures and equipment
         1560           Accumulated depreciation - Leasehold improvements
         1570           Accumulated depreciation - Furniture, fixtures and equipment
         1800        Other Assets
         1810           Refundable deposits
         1820           Others
         2000        Current liabilities
         2100           Withholding tax payable
         2150           SSS premiums and medicare payable
         2200           SSS loans payable
         2250           Pag-IBIG fund payable
         2300           Accrued taxes and expenses
         2350           Accounts payable - Trade (Vendors)
         2400           Accounts payable - others
         2450           Bank loans
         2500           Current portion of long-term debt
         2800        Long-Term Debt, net of current portion
         3000        Fund Balance
         3100           Grant1
         3200           Grant2
         3300           Grant3
         3400           Grant4
         3500           Grant5
         3900           General Fund




                                                                                       - 67 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                      .



Account Code                                     Account Title
    4000          Revenues
    4100             Grants
    4110                 Norwegian
    4120                 ADB - SUMA
    4130                 ADB - Korean
    4140                 Management fee
    4200             Private Sector Members
    4300             Investment Income
    4310                 Interest Income
    4320                 Investment Income - Other
    4400             Foreign Exchange Gain or Loss
    4410                 Transaction Exch Gain or Loss
    4420                 Translation Exch Gain or Loss
    4430                 Foreign Exchange Gain or Loss - Other
    4500             Miscellaneous Income
    4510                 Registration Fees
    4520                 Reimbursed Expenses
    4530                 Miscellaneous Income - Other
    5000          Expenses
    5100             Remuneration
    5110                 Staff Costs
    5111                     Basic Pay
    5112                     Employee Benefits
   5112.1                        13th Month pay
   5112.2                        Overtime
   5112.3                        SSS, PHIC, Medicare Cont
   5112.4                        Employee Benefits - Other
    5113                     Staff Costs - Other
    5120                 Consultants Fees
    5130                 Remuneration - Other
    5200             Travel & Per Diem
    5210                 Travel & Per Diem - Staff
    5220                 Travel & Per Diem - Consultants
    5230                 Travel & Per Diem - Other
    5300             Trainings and Seminars
    5400             Expendable Equipment
    5500             Sub-grants
    5510                 Sub-grant 1
    5511                     Consultants Fees/Remunerations
    5512                     Travel & Per Diem
    5513                     Trainings and Seminars
    5514                     Expendable Equipment
    5515                     Miscellaneous
    5516                     Sub-grant Management
    5517                     Sub-grant 1 - Other




                                                                 - 68 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                      .



Account Code                                 Account Title
     5520               Sub-grant 2
     5521                   Sub-grant Management
     5522                   Consultants Fees/Remunerations
     5523                   Travel & Per Diem
     5524                   Trainings and Seminars
     5525                   Expendable Equipment
     5526                   Miscellaneous
     5527                   Sub-grant 2 - Other
     5530               Sub-grants - Other
     6000            Miscellaneous
     6100               Office Rental & Utilities
     6110                   Rent and Related Costs
     6111                       Building Repairs
     6112                       Building Dues
     6113                       Cleaning & Janitorial
     6114                       Rent and Related Costs - Other
     6120                   Electricity and Water
     6130                   Communication
     6131                       Telephone
     6132                       Internet
     6133                       Communication - Other
     6140                   Office Rental & Utilities - Other
     6200               Third Party Services
     6210                   Accounting
     6220                   Consulting
     6230                   Legal Fees
     6240                   IT Support
     6250                   Insurance
     6260                   Printing and Reproduction
     6270                   Computer & Equipment Repairs
     6280                   Third Party Services - Other
     6300               Misc Admin Costs
     6310                   Stationery Office Supplies
     6320                   Dues and Subscriptions
     6330                   Licenses and Permits
     6340                   Meals and Entertainment
     6350                   Postage and Delivery
     6360                   Depreciation Expense
     6570                   Equipment Rental
     6380                   Misc Admin Costs - Other
     6400               General and Administrative Exp - Other




                                                                 - 69 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                          .


Chart of Accounts Description

CURRENT ASSETS

Petty Cash Fund/Revolving Fund
The Petty Cash Fund/Revolving Fund account represents cash funds set aside for
paying petty expenses not exceeding US$100 or equivalent PhP. This account is
debited for the amount that is set aside when the cash fund is established and for the
amount of any subsequent increase in the size of the fund. This account is credited for
any decrease in the amount of the fund.

Disbursements from the funds do not affect this account as the cash funds are
maintained through an Imprest System.

Cash in Banks
The balance of the Cash in Banks account represents the balances in the Center’s bank
accounts. A separate general ledger account should be set up for each bank account.

This account is debited for all cash/checks received and deposited and other
transactions credited directly by the bank but are not yet taken up in the books of the
Center. It is credited for all check disbursements or withdrawals and debit memos from
the bank.

Short-term Cash Investments
The Short-term Cash Investments account represents temporary investments of unused
funds that are available for current operations and are intended to support both project
and operating requirements.

This account is debited for investments made and interests earned and credited for
redemption of investments.

Advances to Officers and Staff
The Advances to Officers and Staff account represents cash or other form of advances
given to officers and staff that are subject to liquidation in a specified timeframe.

This account is debited for the amount advanced to officers and staff. It is credited for
liquidations made and by direct deduction from the officer’s or staff’s pay or by payment.

Advances to Suppliers
The Advances to Suppliers account represents cash or other form of advance payments
to suppliers as a requirement for the processing of an order.

This account is debited for the amount advanced to suppliers and credited for purchases
made from them or refunds.

PROPERTY AND EQUIPMENT

Leasehold Improvements
This account is debited for the cost of the improvements to the leased office spaces. It is
credited upon the disposals or retirement of the leased space.

                                                                                     - 70 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                            .



Accumulated Depreciation – Leasehold Improvements
This account is a contra-account credited for the periodic provision for depreciation of
the improvements and debited upon the disposal or retirement of the leased office
space.

Furniture and Fixtures
The Furniture and Fixtures account represents the recorded acquisition cost of office
furniture, carpets, curtains, tables, chairs, air-conditioning units, and other furniture
fixtures.

This account is debited for purchases of furniture and fixtures. It is credited for any sale,
disposal, or retirement of these assets.

Accumulated Depreciation – Furniture and Fixtures
This account is a contra-account credited for the periodic provision for depreciation of
the fixed assets and debited upon the disposal or retirement of the asset.

Office Equipment
The Office Equipment account represents the recorded acquisition cost of office
equipment such as computers, printers, copying machine, fax machine and other office
equipment.

This account is debited for purchases of office equipment. It is credited for any sale,
disposal, or retirement of these assets.

Accumulated Depreciation – Office Equipment
This account is a contra-account credited for the periodic provision for depreciation of
the fixed assets and debited upon the disposal or retirement of the asset.

OTHER ASSETS

Refundable Deposits
This account is debited for the amount of payments made to third parties (e.g. lessor,
contractors, etc.) for services expected to be received in the future, subject to the terms
that said payments are refundable in case of non-materialization of the related service.

Others
This account is debited for other assets not classified above.

CURRENT LIABILITIES

Withholding Tax Payable (Compensation and Expanded)
The Withholding Tax Payable account is credited for taxes withheld such as the income
tax withheld from remunerations paid to officers and staff and expanded withholding tax
on payments of professional fees, rentals, etc. It is debited for remittances to the BIR.
The balance of this account represents the unremitted amount of withholding tax
payable as of given date.

SSS Premiums Payable

                                                                                       - 71 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                         .


The SSS Premiums and EC Payable accounts is credited for the monthly premiums
withheld from the remuneration of the officers and staff and the corresponding share of
the employer in the social security and EC premiums. It is debited for remittances to the
Social Security System (SSS). The balance of this account represents the unremitted
amounts of the social security and medicare premiums as of a given date.

SSS Loan Payable
The SSS Loans Payable account is credited for amounts deducted from salaries of
officers and staff in payment of their loans to SSS; it is debited for remittances to SSS.

PhilHealth Premiums Payable
The PhilHealth Premiums (Medicare) Payable accounts is credited for the monthly
premiums withheld from the remuneration of the officers and staff and the corresponding
share of the employer in the medicare premiums. It is debited for remittances to
PhilHealth. The balance of this account represents the unremitted payables to
PhilHealth as of a given date.

Pag-IBIG Fund Payable
The Pag-IBIG Fund Payable is credited for the monthly contributions of the employees
and the employer to the Pag-IBIG Fund; this account is debited for remittances for the
Home Development Mortgage Fund (HDMF).

HDMF Loan Payable
The HDMF Loan Payable is credited for the loan payments withheld by the employer for
remittance to HDMF; this account is debited for remittances to HDMF.

Accrued Taxes and Expenses
The Accrued Taxes and Expenses account represents the total amount of taxes and
expenses that have been incurred as of the end of the month but are not yet paid or not
yet payable until the next month. This account is credited for the amount of accrued
taxes and expenses set up at the end of a particular month. It is debited the following
month to reverse the entry made in the preceding month.

Accounts Payable – Trade (Vendors)
The Accounts payable account represents the total of all unpaid bills at the end of each
month. This account is credited for purchases of goods, supplies, equipment and
services on credit and unpaid at the end of each month. The account is debited for
payments made and for discounts granted by suppliers.

Bank Loans
This account is credited for loans obtained from banks, other financing institutions, and
other creditors which are covered by a loan agreement or promissory note maturing
within a period of twelve months. This account is debited for payments of the loans.

Current Portion of Long-Term Debt
The Current Portion of Long-Term Debt account is credited for the portion of long-term
debt maturing within the period of twelve months. It is debited for payments made
against the principal of the loan.

LONG-TERM DEBT

                                                                                    - 72 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                            .


Long-Term Debt
This account is credited for the proceeds from loans availed under long-term
agreements. Under normal terms of payment, a portion of the loan becomes due and
payable within one year. Accordingly, the balance of long-term loan is analyzed at the
end of each month for financial statements reporting purposes. The portion maturing
within one year is reclassified to the Current Portion of Long-Term Debt account which is
presented in the balance sheet as part of current liabilities.

FUND BALANCE

Grants
The Grants account represents the fund balance of the specific different grants received
by the Center. A separate GL account should be established for each grant. This
account is debited or credited to close the profit and loss accounts.

General Fund
The General Fund account represents the fund balance of funds (other than grants)
received by the Center. This account is debited or credited to close the profit and loss
accounts.

REVENUES

Grants
This account refers to funds received from International development organizations,
foundations and other NGOs and are covered with Agreements with the donor
organization specifying the terms and conditions for the contribution to the individual
program or project. It is credited for the gross amount of grant amounts received from
donors. At the end of the Center’s accounting year, the balance is closed to the Profit
and Loss account. A separate general ledger account should be setup for each grant.

Private Sector Members
This refers to funds received from various organizations where use of the fund is not
specified to a certain program or project of the Center. It is credited for the gross
amounts received from donors. At the end of the Center’s accounting year, the balance
is closed to the Profit and Loss account. A separate general ledger account should be
setup for each type of private sector contributions.

Investment Income
This represents the interest income from placement of temporary un-disbursed funds. It
is credited for all interest income received.

Transaction Foreign Exchange Gains or Losses
This account is credited for realized transaction exchange gains (debited for losses)
arising from the difference in the original booking rate and the rate at the time of
payment or receipt representing realized transaction gains or losses that are recognized
and reported in the period when the payment or receipt occurred.

Translation Foreign Exchange Gains or Losses
This account is credited for unrealized translation exchange gains (debited for losses)
arising from the translation of monetary balances (or balances/amounts that are payable
or collectible in cash in a future period) from their recorded original booking rates to the
                                                                                       - 73 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                         .


spot rates at a given date (e.g. monthend rate). The translation exchange gain or loss is
recognized during the reporting period.

Miscellaneous Income
This includes sources of revenues other than grants, private sector contributions and
interests, such as forum and publication fees and other miscellaneous revenues. It is
credited for all cash received as miscellaneous revenues.


EXPENSES

Staff Remunerations
This account is debited for the remuneration of the Center’s officers and staff.

Staff Benefits

The Staff Benefits account is debited for the employer’s share in the social security
premiums, staff’s healthcare expenses, and other expenses incurred for the benefit of
the Center’s staff.

Travel and per Diem
This account is debited for the transportation and traveling expenses incurred by officers
and staff of the Center during official business trips such as hotel accommodations and
per diem, including reimbursements for gasoline and fuel expenses.

Training, Seminar and Workshop Costs
This account is debited for all costs in conducting trainings, seminars, workshops,
conferences, forum, etc.

Expendable Equipment Costs
This account is debited for rental or cost of expendable equipment purchased.

Sub-grants
This account is debited for payments under subgrant/subcontract arrangements to
undertake an entire project/program or activity on behalf of the CAI-Asia.

Repairs and Maintenance
The Repairs and Maintenance account represents minor repairs and maintenance
expenses incurred by the Center to maintain its assets in good operating conditions.
Major repairs that will prolong the life of the assets are capitalized and depreciated for
the remaining life of the assets concerned.

Production and Office Supplies
The Office Supplies account is charged for the cost of all printed matter such as
accounting forms, books of accounts, checks, letterhead, envelopes, brochures,
publications and other office supplies used by the Center, including photocopy or
reproduction costs.

Light, Power and Water
The Light, Power and Water account is debited for the cost of electricity and water
consumed by the Center.
                                                                              - 74 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                         .



Rent
This account is debited for the amount or rental paid by the Center for office space and
properties.

Communication and Courier
The Communication and Courier account is charge for the cost of postage stamps,
courier services, telephone and fax bills (including long distance and overseas calls),
internet access and other communication-related expenses.

Taxes and Licenses
The Taxes and Licenses account represents the cost of all internal revenue and local
government taxes and licenses, as well as business permits required for the Center’s
operations.

Security and Janitorial
This account represents cost of security and janitorial services for the Center.

Third-Party Services
Third-Party Services account is debited for remunerations for the various services hired
by the Center such as, for projects, legal, audit, IT and other fees paid for professional
services received by the Center.

Insurance
The Insurance account represents the amount of the expired portion of premiums paid
for insurance coverage secured by the Center.

Representation and Entertainment
The Representation and Entertainment account represents expenses incurred by the
Center’s officers and staff to entertain persons with whom the Center transacts business
or with donor representatives.

Dues and Subscriptions
The Dues and Subscriptions account represents dues paid by the Center to business
and professional organizations and affiliations, as well as costs of subscriptions to
newspapers and business magazines.

Depreciation
The Depreciation account represents the periodic wear and tear and obsolescence
charges of the Center’s property and equipment.

Interest Expense
The Interest Expense account represents interest paid on indebtedness. At the end of
the Center’s accounting year, the balance of this account is closed to the Profit and Loss
account.

Miscellaneous Expenses
The Miscellaneous Expenses account is debited for other charges that are not
classifiable under any of the forgoing expense accounts.

Allocated to Projects
                                                                                    - 75 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                           .


This account is used when support costs/operating expenses are allocated into the
different grants.

Allocated Project Support Cost
This account is used as a contra-account used for support costs/operating expenses
allocated to the different grants.


Sub-Account Scheme in Solomon

                         Solomon
          Segment          Sub         Sub account
Level                                                                         Guidelines
        Classification   account       Description
                          Code
                          0000     Default                -Grants will be considered a project if donation is
                                                          covered by LoA and/or requires separate financial
                                                          reports (liquidation).
                          0001     SUMA
  1         Project       0002     SOE                    -"0000 - Default" shall be used for transaction that
                                                          are not classified to a certain project
                          0003     APPH
                          0004     Transport GHG

                           000     Default                -Coding Scheme: 001-800 - Project Donor
                                                                          801-999 - Private Sector
                           001     ADB                    Members
                           002     SVCAP
  2         Donor                                         - Transaction that has a project segment shall
                           801     ACFA                   require a donor sub account
                           802     SGS Group
                           803     Corning
                           804     Shell
                                                          - Admin expenses shall first use "00-Default" until
                           00      Default                allocation is classified
                                   Strategic Linkages &
                           01      Capacity Building
        Strategic Area
  3                                Knowledge
         Component
                           02      Management
                           03      Transport
                           04      AQM
                          0000     Default                - Recurring, major events, funded missions
                                   BoT and Partnership    - Expenses that need to be tracked separately for
                          0001     Meeting                future reference
  4        Activities
                                   Local Network
                          0002     Summit
                          0003     Regional Dialogue




                                                                                                   - 76 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                          .



                         Solomon
          Segment          Sub         Sub account
Level                                                                           Guidelines
        Classification   account       Description
                          Code
                          0000     Default                 - Project's sub grantee that is covered by LoA with
                                                           CAI-Asia Center
                          0001     ITDP                    - Received grants from the Center
                                   I-ce Interface for
  5      Oranizations     0002     Cycling Expertise
                          0003     Embarq-WRI
                          0004     GTZ-SUPT


                           000     Default                 -Coding Scheme: 001 - 199 - Staff
                           001     Sophie Punte                              200 - 999 - Consultant
                           002     Glynda Bathan
                           003     Michael Co
                           004     Herbert Fabian
                           005     May Ajero
            Staff /        006     Aurora Ables
  6
          Consultant
                           007     Agatha Diaz
                           008     Gianina Panopio
                           009     Jerey Estrada - IDEIN
                           201     Cornelius Huizenga
                           202     Marie Thynell
                           203     Christopher Cherry
                           204     Alvin Mejia
                           00      Default                 - Local Networks
                                                           - Countries Funded
                           01      Vietnam
                           02      Mongolia
                           03      China
  7        Country
                           04      India
                           05      Nepal
                           06      Philippines
                           07      Pakistan
                           08      Sri Lanka




                                                                                                    - 77 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                       .


Chart of Accounts Scheme in Solomon


Account                                                        Acct
                                                   Account
Number                       Account Description    Type       Order   Class ID
1110      Petty cash fund - PH Peso                 Asset         1    1000
1120      Petty cash fund - US Dollar               Asset         1    1000
1130      Cash in Bank - HSBC - PH Peso             Asset         1    1000
1140      Cash in Bank - HSBC - US Dolla            Asset         1    1000
1210      Short-term Investment - PH Pes            Asset         1    1000
1220      Short-term Investment - USDoll            Asset         1    1000
1310      Advances to officers and staff            Asset         1    1000
1311      Advances to Consultants                   Asset         1    1000
1320      Advances to suppliers                     Asset         1    1000
1330      Advances to Sub-grants                    Asset         1    1000
1340      Advance -others                           Asset         1    1000
1345      Prepaid Rent                              Asset         1    1000
1346      Prepaid Insurance                         Asset         1    1000
1510      Leasehold Improvements                    Asset         1    1500
1520      Furnitue, fixtures & Equipt.              Asset         1    1500
1530      Office equipment                          Asset         1    1500
1540      Accounting Software                       Asset         1    1500
1560      Accum. Deprec.- Leasehold Imp.            Asset         1    1500
1570      Accum. Deprec.-Furniture, Fix.            Asset         1    1500
1580      Accumulated depreciation - Off            Asset         1    1500
1590      Accum. Deprec.-Acctg. Software            Asset         1    1500
1810      Refundable deposits                       Asset         1    1800
1811      Others                                    Asset         1    1800
1812      Intangible:Comp. Software-Cost            Asset         1    1800
1820      Intangible:Comp. Soft-Amortizn            Asset         1    1800
2100      Accounts payable - Trade/Vendo           Liability      2    2000
2105      Accounts payable - Goods and S           Liability      2    2000
2110      Withholding tax payable - comp           Liability      2    2000
2120      Withholding tax payable - expa           Liability      2    2000
2125      Final Withholding Tax                    Liability      2    2000
2130      Philheath premiums payable               Liability      2    2000
2150      SSS premiums and EC payable              Liability      2    2000
2200      SSS loans payable                        Liability      2    2000
2250      Pag-IBIG fund payable                    Liability      2    2000
2280      HDMF loan payable                        Liability      2    2000
2285      Tax Refund on Employees                  Liability      2    2000
2290      Accrued Expenses                         Liability      2    2000
2295      Advances from Donors                     Liability      2    2000
2450      Bank loans                               Liability      2    2000
2500      Current portion of long-term d           Liability      2    2000
2800      Long-Term Debt, net of current           Liability      2    2800
3000      Fund Balance                             Liability      2    3000
3910      General Fund                             Liability      2    3000
3950      Retained Earnings                        Liability      2    3000
3990      Excess from Revenues and Expen           Liability      2    3000


                                                                                  - 78 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                     .

Account                                                      Acct
                                                  Account
Number                      Account Description    Type      Order   Class ID
4100      Grants                                   Income       3    4000
4200      Grants-Management Fee                    Income       3    4000
4500      Private Sector Members                   Income       3    4000
4700      Investment Income                        Income       3    4000
4710      Interest Income                          Income       3    4000
4720      Investment Income - Other                Income       3    4000
4810      Transaction Exch Gain or Loss            Income       3    4000
4820      Translation Exch Gain or Loss            Income       3    4000
4830      Foreign Exchange Gain or Loss            Income       3    4000
4910      Registration Fees                        Income       3    4000
4920      Reimbursed Expenses                      Income       3    4000
4930      Miscellaneous Income - Other             Income       3    4000
4940      BAQ 2008-Income                          Income       3    4000
5100      Remunerations                           Expenses      4    5000
5110      Staff Costs                             Expenses      4    5000
5111      Basic Pay                               Expenses      4    5000
5112      13th Month pay                          Expenses      4    5000
5113      Overtime                                Expenses      4    5000
5114      SSS                                     Expenses      4    5000
5115      Philhealth                              Expenses      4    5000
5116      Pagibig                                 Expenses      4    5000
5117      Employee Benefits - Other               Expenses      4    5000
5118      Staff Costs - Other                     Expenses      4    5000
5120      Consultants Fees                        Expenses      4    5000
5130      Resource Persons' Fees                  Expenses      4    5000
5140      Remunerations-Others                    Expenses      4    5000
5200      Travel and Per Diem                     Expenses      4    5000
5210      Travel Airfare - Staff                  Expenses      4    5000
5211      Travel-Hotel/DSA/MTE-Staff              Expenses      4    5000
5220      Travel Airfare-Consultant               Expenses      4    5000
5221      Travel-Hotel/DSA/MTE-Consultan          Expenses      4    5000
5222      Travel-Others-Consultants               Expenses      4    5000
5230      Travel Airfare - Other                  Expenses      4    5000
5231      Travel-Hotel/DSA/MTE-Other              Expenses      4    5000
5300      Trainings and Seminars                  Expenses      4    5000
5310      Trainings and Seminars-Airfare          Expenses      4    5000
5311      Trainings & Seminars-Hotel/PD           Expenses      4    5000
5312      TSW:BAQ Coordinator & Support           Expenses      4    5000
5313      TSW:BAQ Kong Ha Award                   Expenses      4    5000
5314      TSW:BAQ Sponsored Participants          Expenses      4    5000
5315      TSW:BAQ Venue and Workshop Pac          Expenses      4    5000
5316      TSW:BAQ Materials, Design, Pri          Expenses      4    5000
5317      TSW:BAQ Other Expenses                  Expenses      4    5000
5320      Trainings and Seminars-Meeting          Expenses      4    5000
5330      Trainings and Seminars-Others           Expenses      4    5000
5350      BAQ 2008 Workshop                       Expenses      4    5000
5400      Expendable Equipment                    Expenses      4    5000
5410      Depreciation-Office Equipment           Expenses      4    5000


                                                                                - 79 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                      .

Account                                                       Acct
                                                   Account
Number                       Account Description    Type      Order   Class ID
5411      Amortization-Acctg. Software             Expenses      4    5000
5412      Amortization-Leasehold Improve           Expenses      4    5000
5500      Sub-grants                               Expenses      4    5000
5510      Consultants Fees/Remunerations           Expenses      4    5000
5511      Travel & Per Diem                        Expenses      4    5000
5512      Trainings and Seminars                   Expenses      4    5000
5513      Expendable Equipment                     Expenses      4    5000
5514      Miscellaneous                            Expenses      4    5000
5515      Sub-grant Management                     Expenses      4    5000
5516      Sub-grant 1 - Other                      Expenses      4    5000
5600      Support to Country Networks              Expenses      4    5000
5610      Support to CN-Consultant's Fee           Expenses      4    5000
5611      Support to CN-Travel & PerDiem           Expenses      4    5000
5612      Support to CN-Training&Seminar           Expenses      4    5000
5613      Support to CN-Expandable Equip           Expenses      4    5000
5614      Support to CN-Miscellaneous              Expenses      4    5000
5615      Support to CN-Management                 Expenses      4    5000
5616      Support to CN-Others                     Expenses      4    5000
6000      Miscellaneous                            Expenses      4    5000
6100      Office Rental & Utilities                Expenses      4    5000
6110      Rent and Related Costs                   Expenses      4    5000
6111      Building Repairs                         Expenses      4    5000
6112      Building Dues                            Expenses      4    5000
6113      Cleaning & Janitorial                    Expenses      4    5000
6114      Rent and Related Costs - Other           Expenses      4    5000
6120      Electricity and Water                    Expenses      4    5000
6130      Communication                            Expenses      4    5000
6131      Telephone                                Expenses      4    5000
6132      Internet & Webhosting                    Expenses      4    5000
6133      Courier & Postage                        Expenses      4    5000
6134      Communication-Others                     Expenses      4    5000
6135      Transportation                           Expenses      4    5000
6140      Office Rental & Utilities - Ot           Expenses      4    5000
6200      Third Party Services                     Expenses      4    5000
6210      Accounting & Audit                       Expenses      4    5000
6213      Janitorial and Cleaning                  Expenses      4    5000
6220      Consulting                               Expenses      4    5000
6230      Legal Fees                               Expenses      4    5000
6240      IT Support                               Expenses      4    5000
6250      Insurance                                Expenses      4    5000
6260      Printing and Reproduction                Expenses      4    5000
6270      Computer & Equipment Repairs             Expenses      4    5000
6280      Third Party Services - Other             Expenses      4    5000
6300      Miscellaneous Admin Costs                Expenses      4    5000
6310      Stationery Office Supplies               Expenses      4    5000
6320      Dues and Subscriptions                   Expenses      4    5000
6330      Licenses and Permits                     Expenses      4    5000
6340      Representation & Entertainment           Expenses      4    5000


                                                                                 - 80 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                   .

Account                                                    Acct
                                                Account
Number                    Account Description    Type      Order   Class ID
6350      Postage and Delivery                  Expenses      4    5000
6360      Depreciation Expense                  Expenses      4    5000
6370      Bank Charges                          Expenses      4    5000
6380      Misc Admin Costs - Other              Expenses      4    5000
6400      General and Administrative Exp        Expenses      4    5000




                                                                              - 81 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                           .


Annex 38-a.   Accounting Policies

     Financial Assets

     Financial assets include cash and financial instruments. The Center classifies its
     financial assets into the following categories: financial assets at fair value through
     profit or loss, loans and receivables, held-to-maturity investments and available-for-
     sale financial assets. Financial assets are assigned to the different categories by
     management on initial recognition, depending on the purpose for which the
     investments were acquired. The designation of financial assets is re-evaluated at
     every reporting date at which a choice of classification or accounting treatment is
     available, subject to compliance with specific provisions of applicable accounting
     standards.

     All financial assets are recognized on their trade date. All financial assets that are
     not classified as at fair value through profit or loss are initially recognized at fair
     value, plus transaction costs.

     Cash is defined as cash on hand and demand deposits which are subject to
     insignificant risk of changes in values.

     Receivables are non-derivative financial assets with fixed or determinable
     payments that are not quoted in an active market. They arise when the Center
     advances costs and expenses chargeable to a debtor with no intention of trading
     the receivables. These are included in current assets except for maturities greater
     than 12 months after the statement of assets, liabilities and fund balance date
     which are classified as non-current assets.

     Receivables are subsequently measured at amortized cost using the effective
     interest method, less any impairment loss. Any change in their value is recognized
     as profit or loss. Impairment loss is provided when there is objective evidence that
     the Center will not be able to collect all amounts due to it in accordance with the
     original terms of the receivables. The amount of the impairment loss is determined
     as the difference between the asset’s carrying amount and the present value of
     estimated cash flows.
     Non-compounding interest and other cash flows resulting from holding financial
     assets are recognized in statement of support, income and expenditures when
     earned, regardless of how the related carrying amount of financial assets is
     measured.

     Derecognition of financial assets occurs when the rights to receive cash flows from
     the financial instruments expire or are transferred and substantially all of the risks
     and rewards of ownership have been transferred.

     Property and Equipment

     Property and equipment are carried at acquisition cost less accumulated
     depreciation, amortization and impairment in value, if any.

     The cost of property and equipment comprises its purchase price and directly
     attributable costs of bringing the asset to working condition for its intended use.
                                                                                   - 82 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                            .


     Expenditures for additions, major improvements and renewals are capitalized;
     expenditures for repairs and maintenance are charged to expense as incurred.
     When assets are sold, retired or otherwise disposed of, their cost and related
     accumulated depreciation and amortization and impairment losses, if any, are
     removed from the accounts and any resulting gain or loss is reflected in income for
     the period.

     Property and equipment acquired for a project through restricted contributions are
     recorded as grant expenses. The Center recognizes the asset only upon project
     completion or upon transfer of the ownership of the asset to the Center at its net
     book value or the fair value at the time it was transferred.

     Depreciation of office equipment is computed on the straight-line basis over its
     estimated useful life of three years while leasehold improvements are amortized on
     a straight-line basis over its estimated useful life or the term of the lease, whichever
     is shorter.

     The useful life, depreciation and amortization method are reviewed periodically to
     ensure that the period and method of depreciation and amortization are consistent
     with the expected pattern of economic benefits from items of property and
     equipment.

     An asset’s carrying amount is written down immediately to its recoverable amount if
     the asset’s carrying amount is greater than its estimated recoverable amount.

     An item of property and equipment is derecognized upon disposal or when no
     future economic benefits are expected to arise from the continued use of the asset.
     Any gain or loss arising on derecognition of the asset (calculated as the difference
     between the net disposal proceeds and the carrying amount of the item) is included
     in the statement of support, income and expenditures in the year the item is
     derecognized.

     The Center’s policy is to capitalize all property and equipment, either movable or
     fixed, with a unit acquisition cost above US$500 (or if a component of another
     capitalizable asset even if the unit acquisition cost is less than US$500) and with a
     useful life of two years or more. The acquisition cost includes the amount paid or
     to be paid for the asset and any associated costs incurred to make the asset
     usable for the purpose for which it was intended, including installation costs.

     All capitalizable property and equipment must be identified with a CAI-Asia Center
     property tag and the corresponding asset reference shall be assigned and entered
     in the Center’s fixed asset register. Property and equipment shall include
     leasehold improvements, furniture and fixtures, computing equipment and related
     software costs, and office equipment. The Finance and Administration Services
     (FAS) staff shall, at least annually, conduct a physical count of all property and
     equipment and update the status and location of the asset in the Center’s records.
     When an asset is determined for disposal, the proper disposition shall be
     recommended by the head of FAS and approved by the Deputy Executive Director
     or the Executive Director.


                                                                                       - 83 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                           .


     Depreciation on capitalized property and equipment shall be computed on the
     straight-line basis over the estimated useful lives of the assets as follows:

     Office equipment                        3 years
     Leasehold improvements                  2 years or over the term of the lease,
                                                    whichever is shorter

     Intangible Assets

     The Center’s intangible assets pertain to acquired computer software licenses
     which are presented under other non-current assets and are stated at cost less
     accumulated amortization and impairment in value, if any. Acquired computer
     software licenses are capitalized on the basis of the costs incurred to acquire and
     install the specific software. Costs associated with maintaining computer software
     are expensed as incurred. Capitalized costs are amortized on a straight-line basis
     over the estimated useful life of three years. An asset’s carrying amount is written
     down immediately to its recoverable amount if the asset’s carrying amount is
     greater than its estimated recoverable amount.

     Financial Liabilities

     Financial liabilities of the Center include accounts payable and accrued expenses.

     Financial liabilities are recognized when the Center becomes a party to the
     contractual agreements of the instrument. All interest related charges are
     recognized as an expense in the statement of support, income and expenditures.

     Accrued expenses and other liabilities are recognized initially at their fair value and
     subsequently measured at amortized cost less settlement payments.

     Financial liabilities are derecognized from the statement of assets, liabilities and
     fund balance only when the obligations are extinguished either through settlement,
     cancellation or expiration.

     Provisions

     Provisions are recognized when present obligations will probably lead to an outflow
     of economic resources and they can be estimated reliably even if the timing or
     amount of the outflow may still be uncertain. A present obligation arises from the
     presence of a legal or constructive commitment that has resulted from past events,
     for example, legal disputes or onerous contracts.

     Provisions are reviewed at each statement of assets, liabilities and fund balance
     date and adjusted to reflect the current best estimate.

     Contingent Liabilities and Contingent Assets

     In those cases where the possible outflow of economic resource as a result of
     present obligations is considered improbable or remote, or the amount to be
     provided for cannot be measured reliably, no liability is recognized in the financial
     statements.
                                                                                    - 84 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                          .



     Probable inflows of economic benefits that do not yet meet the recognition criteria
     of an asset are considered contingent assets, hence, are not recognized in the
     financial statements.

     Support, Income and Expenditures Recognition

     Support and income are recognized to the extent that it is probable that the
     economic benefits will flow to the Center and the revenue can be reliably
     measured.

     The following specific recognition criteria must also be met before revenue is
     recognized:

     •     Revenue from restricted support is recognized upon fulfilment of the donor-
           imposed conditions attached to the support and/or to the extent that expenses
           are incurred.

           Restricted support for which restrictions and conditions have not yet been met
           are classified as deferred support. At project completion date, any excess
           funds in the deferred support are returned to the donors unless otherwise
           agreed by both parties that the excess shall be retained by the Center and
           therefore credited to unrestricted support.

     •     Revenue from unrestricted support is recognized upon receipt of the support.

     •     Interest income is recognized as interest accrues (taking into account the
           effective yield on the assets).

     Grants and other expenses are recognized in the statement of support, income and
     expenditures upon utilization of the assets or services or at the date they are
     incurred.

     Leases

     Leases which do not transfer to the Center substantially all the risks and benefits of
     ownership of the assets are classified as operating leases. Operating lease
     payments are recognized as expense in the statement of support, income and
     expenditures on a              straight-line basis over the lease term. Associated
     costs, such as maintenance and insurance, are expensed as incurred.

     The Center determines whether an arrangement is, or contains a lease based on
     the substance of the arrangement. It makes an assessment of whether the
     fulfillment of the arrangement is dependent on the use of a specific asset or assets
     and the arrangement conveys a right to use the asset.

     Functional Currency and Foreign Currency Transactions

     (a)    Functional and Presentation Currency


                                                                                     - 85 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                           .


           Items included in the financial statements of the Center are measured using
           the currency of the primary economic environment in which the entity operates
           (the functional currency). The financial statements are presented in US
           dollars, which is the Center’s functional and presentation currency.

     (b)   Transactions and Balances

           The accounting records of the Center are maintained in US dollars. Foreign
           currency transactions during the period are translated into US dollars at
           exchange rates which approximate those prevailing on transaction dates.

           Foreign exchange gains and losses resulting from the settlement of and from
           the translation at period-end exchange rates of monetary assets and liabilities
           denominated in foreign currencies are recognized in the statement of support,
           income and expenditures.

     Impairment of Non-financial Assets

     The Company’s property and equipment and intangible assets are subject to
     impairment testing whenever events or changes in circumstances indicate that the
     carrying amount may not be recoverable.

     For purposes of assessing impairment, assets are grouped at the lowest levels for
     which there are separately identifiable cash flows (cash-generating units). As a
     result, some assets are tested individually for impairment and some are tested at
     cash-generating unit level.

      An impairment loss is recognized for the amount by which the asset or cash-
     generating unit’s carrying amount exceeds its recoverable amount.               The
     recoverable amount is the higher of fair value, reflecting market conditions less
     costs to sell, and value in use, based on an internal evaluation of discounted cash
     flow. Impairment loss is charged pro-rata to the other assets in the cash-
     generating unit.

     All assets are subsequently reassessed for indications that an impairment loss
     previously recognized may no longer exist and the carrying amount of the asset is
     adjusted to the recoverable amount resulting in the reversal of the impairment loss.

     Employee Benefits

     (a) Retirement Benefit Obligations

           The Center has not yet established a formal retirement benefit plan and is not
           yet subject to the provisions of Republic Act 7641, The Retirement Pay Law as
           of December 31, 2007 and 2008.

           Social Security System contributions fall under a defined contribution plan
           under which the Center pays fixed contributions into an independent entity.
           The Center has no legal or constructive obligations to pay further contributions
           after payment of the fixed contribution. The contributions recognized in
           respect of defined contribution plans are expensed as they fall due. Liabilities
                                                                                      - 86 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                             .


          and assets may be recognized if underpayment or prepayment has occurred
          and are included in current liabilities or current assets as they are normally of
          a short-term nature.

     (b) Paid Incentive Leaves

          Paid incentive leaves are recognized for the number of paid leaves (including
          holiday entitlement) remaining at the statement of assets, liabilities and fund
          balance date. They are included in Accounts Payable and Accrued Expenses
          account at the undiscounted amount that the Center expects to pay as a result
          of the unused entitlement.

     Income Taxes

     Current tax assets or liabilities comprise those claims from, or obligations to, fiscal
     authorities relating to the current or prior reporting period, that are uncollected or
     unpaid at the statement of assets, liabilities and fund balance date. They are
     calculated according to the tax rates and tax laws applicable to the fiscal periods to
     which they relate, based on the taxable profit for the period. All changes to current
     tax assets or liabilities are recognized as a component of tax expense in the
     statement of support, income and expenditures.

     Deferred tax is provided, using the balance sheet liability method on temporary
     differences at the statement of assets, liabilities and fund balance date between the
     tax base of assets and liabilities and their carrying amounts for financial reporting
     purposes.

     Under the balance sheet liability method, with certain exceptions, deferred tax
     liabilities are recognized for all taxable temporary differences and deferred tax
     assets are recognized for all deductible temporary differences and the carryforward
     of unused tax losses and unused tax credits to the extent that it is probable that
     taxable profit will be available against which the deferred tax asset can be utilized.

     The carrying amount of deferred tax assets is reviewed at each statement of
     assets, liabilities and fund balance date and reduced to the extent that it is probable
     that sufficient taxable profit will be available to allow all or part of the deferred tax
     asset to be utilized.

     Deferred tax assets and liabilities are measured at the tax rates that are expected
     to apply to the period when the asset is realized or the liability is settled, based on
     tax rates and tax laws that have been enacted or substantively enacted at the
     statement of assets, liabilities and fund balance date.

     Most changes in deferred tax assets or liabilities are recognized as a component of
     tax expense in the statement of support, income and expenditures. Only changes
     in deferred tax assets or liabilities that relate to a change in value of assets or
     liabilities that is charged directly to fund balance are charged or credited directly to
     fund balance.



                                                                                        - 87 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                          .


     Fund Balance

     Fund balance (deficit) is composed of the assigned capital and all prior period
     results of operation as a result of the utilization of unrestricted funds. Assigned
     capital represents the actual initial contribution paid by the incorporators.

     Critical Judgments in Applying Accounting Policies

     In the process of applying the Center’s accounting policies, management has
     made the following judgments, apart from those involving estimation, which have
     the most significant effect on the amounts recognized in the financial statements:

     (a) Operating Lease

         The Center has entered into an operating lease agreement as a lessee.
         Critical judgment was exercised by management to distinguish such lease
         agreement as either an operating or finance lease by looking at the transfer or
         retention of significant risk and rewards of ownership of the properties covered
         by the agreement.

     (b) Provisions and Contingencies

          Judgment is exercised by management to distinguish between provisions and
          contingencies. Policies on recognition and disclosure of provision and
          disclosure of contingencies shall be disclosures in the Financial Statements.

     Key Sources of Estimation Uncertainty

     The following are the key assumptions concerning the future, and other key
     sources of estimation uncertainty at the statement of assets, liabilities and fund
     balance date, that have a significant risk of causing a material adjustment to the
     carrying amounts of assets and liabilities within the next financial year:

     (a) Useful Lives of Property and Equipment and Acquired Computer Software
         Licenses

       The Center estimates the useful life of its property and equipment and
       acquired computer software licenses based on the period over which the
       assets are expected to be available for use. The estimated useful lives of
       property and equipment and acquired computer software licenses are
       reviewed periodically and are updated if expectations differ from previous
       estimates due to physical wear and tear, technical or commercial
       obsolescence and legal or other limits on the use of the assets. In addition,
       estimation of the useful life of property and equipment and acquired computer
       software licenses is based on collective assessment of industry practice,
       internal technical evaluation and experience with similar assets. It is possible,
       however, that future results of operations could be materially affected by
       changes in estimates brought about by changes in factors mentioned above.
       The amounts and timing of recorded expenses for any period would be
       affected by changes in these factors and circumstances. A reduction in the
       estimated useful life of property and equipment and acquired computer
                                                                                     - 88 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                             .


       software licenses would increase recorded depreciation and amortization and
       decrease non-current assets.

     (b) Allowance for Impairment of Receivables

       Allowance is made for specific and groups of accounts, where objective
       evidence of impairment exists. The Center evaluates these accounts based
       on available facts and circumstances, including, but not limited to, the length
       of the Center’s relationship with the third party, the third party’s current credit
       status, average age of accounts, collection experience and historical loss
       experience.

     (c) Impairment of Property and Equipment and Acquired Computer Software
         Licenses

       PFRS requires that an impairment review be performed when certain
       impairment indicators are present. The Center’s policy on estimating the
       impairment of property and equipment and acquired computer software
       licenses is discussed in detail in  the Property and Equipment policy.

     Deferred Support

     Deferred support represents funds received from donors applicable to succeeding
     periods. The funds are to be used only for the specific projects and in compliance
     with the terms and conditions of the grant.

     In general, unused funds at the end of the project are returned to the donors unless
     otherwise agreed.

     Risk Management Policies

     The Center is exposed to a variety of financial risks which result from its operating
     activity. The Center’s risk management is formulated by the Center’s Board of
     Trustees, and focuses on actively securing the Center’s short to medium cash
     flows by minimizing the exposure to financial markets.

     The Center does not actively engage in the trading of financial assets for
     speculative purposes nor does it write options. The financial risks to which the
     Center is exposed to are described below.

     Foreign Currency Sensitivity

     The Center has no significant exposure to foreign currency risk as most
     transactions are denominated in US Dollar, its functional currency.

     Credit Risks

     Generally, the maximum credit risk exposure of financial assets is the carrying
     amount of the financial assets as shown on the face of the statement of assets,
     liabilities and fund balance.    Credit risk, therefore, is only disclosed in

                                                                                       - 89 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                         .


     circumstances where the maximum potential loss differs significantly from the
     financial asset’s carrying amount.

     The Center is not exposed to credit risk since majority of its receivables are short-
     term in nature and collectibility is assured.

     Liquidity Risk

     The Center maintains cash to meet its liquidity requirements for up to 60-day
     periods. As of December 31, 2008 and 2007, the Center’s financial liabilities
     pertain to accounts payable and accrued expenses which are expected to be
     settled within 12 months.

     Fund Management Policy

     The Center’s capital management objective mainly focuses on ascertaining that its
     goals and objectives have been achieved and ensuring the ability of the Center to
     continue as a going concern. The Center monitors its activities to provide feasible
     outcome and to assure that budgets approximates the actual expenditures. This
     will enable donors to assess whether the Center is capable of achieving its goals
     within the allowed budgets and therefore, be continuously provided with relevant
     activities/ projects in the future.




                                                                                    - 90 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                                 .



Annex 39.       Project Budget Drafting Form



                                                PROJECT BUDGET DRAFTING FORM

Project Title                                      Project Code       Donor            Currency   Start Date     Date of
                                                                                                               Completion



               Expenses                 TOTAL        YEAR 1          YEAR 2            YEAR 3      YEAR 4       YEAR 5
Direct/Project Costs:
Remunerations
Travel and Per Diem
Trainings and Seminars
Expendable equipment cost
Subgrants
Miscellaneous project expenses




  Subtotal

Administrative costs (15%)

Total
Notes/Remarks:




Prepared By:                                                      Approved By:


Signature Over Printed Name                                       Executive Director




                                                                                                                            - 91 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                                                                .



Annex 40.          Project Budget Revision Form



                                                         PROJECT BUDGET REVISION FORM

                                                                                        Project Start      Project
Project Title:                                       Project Code         Donor            Date         Completion Date      Revision Date   Effectivity Date



                                                                       Unliquidated
                                                     Disbursement     Obligations To-   Obligations       Requested             Increase
                 Expenses          Approve Budget   Project-to-Date        Date         Committed       Revised Budget        (Decrease)        Remarks
                    "a"                  "b"              "c"               "d"         "e" (c + d)           "f"              "g" (f - b)

Remunerations                            200,000           150,000            75,000         225,000           250,000              50,000
Travel and Per Diem
Trainings and Seminars
Expendable equipment cost
Subgrants
Miscellaneous project expenses



Totals                                   200,000           150,000            75,000         225,000           250,000              50,000
Notes/Remarks:




Prepared By:                                        Reviewed and Recommended By:                        Approved By:


Signature Over Printed Name                         Head of FAS                                         Executive Director




                                                                                                                                                           - 92 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                                                      .



Annex 41.        Project Fund Status Report



                                                       PROJECT FUND STATUS REPORT
Project _____________________
For the Month of _____________

                                                   Obligations    Disbursed This    Disbursement     Unliquidated         Total       Uncommitted
               Expenses               Budget       Committed          Month        Project-to-Date   Obligations      Expenditures      Balance
                   "a"                  "b"            "c"             "d"               "e"          "f" (c - e)      "g" (e + f)     "h" (b -g)
 Remunerations                         1,000,000        500,000         100,000           300,000          200,000          500,000         500,000
 Travel and Per Diem                     200,000         50,000            2,000             2,000           48,000          50,000         150,000
 Trainings and Seminars                                                                                           -              -                -
 Expendable equipment cost                                                                                        -              -                -
 Subgrants                                                                                                        -              -                -
 Miscellaneous project expenses                                                                                   -              -                -
                                                                                                                  -              -                -
                                                                                                                  -              -                -
                                                                                                                  -              -                -
                                                                                                                  -              -                -
                                                                                                                  -              -                -
                                                                                                                  -              -                -
                                                                                                                  -              -                -
                                                                                                                  -              -                -
                                                                                                                  -              -                -
                                       1,200,000       550,000          102,000           302,000         248,000          550,000         650,000




                                                                                                                                              - 93 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                      .


Annex 42.              Income Statement

 Account
  Code                                                    ADB - SUMA     ADB - Korean    Norwegian     Common Fund        TOTAL

  4000     Revenues
  4100        Grants
  4110            Norwegian                                       0.00            0.00          0.00           0.00               0.00
  4120            ADB - SUMA                                      0.00            0.00          0.00           0.00               0.00
  4130            ADB - Korean                                    0.00            0.00          0.00           0.00               0.00
  4140            Management fee                                  0.00            0.00          0.00           0.00               0.00
                  Total Grants                                    0.00            0.00          0.00           0.00               0.00
  4200        Private Sector Members                              0.00            0.00          0.00           0.00               0.00
  4300        Investment Income
  4310            Interest Income                                 0.00            0.00          0.00           0.00               0.00
  4320            Investment Income - Other                       0.00            0.00          0.00           0.00               0.00
                  Total Investment Income                         0.00            0.00          0.00           0.00               0.00
  4400        Foreign Exchange Gain or Loss
  4410            Transaction Exch Gain or Loss                   0.00            0.00          0.00           0.00               0.00
  4420            Translation Exch Gain or Loss                   0.00            0.00          0.00           0.00               0.00
  4430            Foreign Exchange Gain or Loss - Other           0.00            0.00          0.00           0.00               0.00
                  Total Foreign Exchange Gain or Loss             0.00            0.00          0.00           0.00               0.00
  4500        Miscellaneous Income
  4510            Registration Fees                               0.00            0.00          0.00           0.00               0.00
  4520            Reimbursed Expenses                             0.00            0.00          0.00           0.00               0.00
  4530            Miscellaneous Income - Other                    0.00            0.00          0.00           0.00               0.00
              Total Miscellaneous Income                          0.00            0.00          0.00           0.00               0.00

           Total Revenues                                        0.00            0.00          0.00            0.00               0.00
  5000     Expenses
  5100        Remuneration
  5110            Staff Costs
  5111                 Basic Pay                                  0.00            0.00          0.00           0.00               0.00
  5112                 Employee Benefits
  5112.1                   13th Month pay                         0.00            0.00          0.00           0.00               0.00
  5112.2                   Overtime                               0.00            0.00          0.00           0.00               0.00
  5112.3                   SSS, PHIC, Medicare Cont               0.00            0.00          0.00           0.00               0.00
  5112.4                   Employee Benefits - Other              0.00            0.00          0.00           0.00               0.00
                           Total Employee Benefits                0.00            0.00          0.00           0.00               0.00
  5113                 Staff Costs - Other                        0.00            0.00          0.00           0.00               0.00
                       Total Staff Costs                          0.00            0.00          0.00           0.00               0.00
  5120            Consultants Fees                                0.00            0.00          0.00           0.00               0.00
  5130            Remuneration - Other                            0.00            0.00          0.00           0.00               0.00
                  Total Remuneration                              0.00            0.00          0.00           0.00               0.00
  5200        Travel & Per Diem
  5210            Travel & Per Diem - Staff                       0.00            0.00          0.00           0.00               0.00
  5220            Travel & Per Diem - Consultants                 0.00            0.00          0.00           0.00               0.00
  5230            Travel & Per Diem - Other                       0.00            0.00          0.00           0.00               0.00
                  Total Travel & Per Diem                         0.00            0.00          0.00           0.00               0.00
  5300        Trainings and Seminars                              0.00            0.00          0.00           0.00               0.00
  5400        Expendable Equipment                                0.00            0.00          0.00           0.00               0.00
  5500        Sub-grants
  5510            Sub-grant 1
  5511                 Consultants Fees/Remunerations             0.00            0.00          0.00           0.00               0.00
  5512                 Travel & Per Diem                          0.00            0.00          0.00           0.00               0.00
  5513                 Trainings and Seminars                     0.00            0.00          0.00           0.00               0.00
  5514                 Expendable Equipment                       0.00            0.00          0.00           0.00               0.00
  5515                 Miscellaneous                              0.00            0.00          0.00           0.00               0.00
  5516                 Sub-grant Management                       0.00            0.00          0.00           0.00               0.00
  5517                 Sub-grant 1 - Other                        0.00            0.00          0.00           0.00               0.00
                       Total Sub-grant 1                          0.00            0.00          0.00           0.00               0.00




                                                                                                             - 94 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                       .

 Account
  Code                                                     ADB - SUMA     ADB - Korean    Norwegian     Common Fund        TOTAL
  5520           Sub-grant 2
  5521               Sub-grant Management                          0.00            0.00          0.00           0.00               0.00
  5522               Consultants Fees/Remunerations                0.00            0.00          0.00           0.00               0.00
  5523               Travel & Per Diem                             0.00            0.00          0.00           0.00               0.00
  5524               Trainings and Seminars                        0.00            0.00          0.00           0.00               0.00
  5525               Expendable Equipment                          0.00            0.00          0.00           0.00               0.00
  5526               Miscellaneous
  5527               Sub-grant 2 - Other                           0.00            0.00          0.00           0.00               0.00
                     Total Sub-grant 2                             0.00            0.00          0.00           0.00               0.00
  5530           Sub-grants - Other                                0.00            0.00          0.00           0.00               0.00
                 Total Sub-grants                                  0.00            0.00          0.00           0.00               0.00
  6000        Miscellaneous
  6100           Office Rental & Utilities
  6110               Rent and Related Costs
  6111                    Building Repairs                         0.00            0.00          0.00           0.00               0.00
  6112                    Building Dues                            0.00            0.00          0.00           0.00               0.00
  6113                    Cleaning & Janitorial                    0.00            0.00          0.00           0.00               0.00
  6114                    Rent and Related Costs - Other           0.00            0.00          0.00           0.00               0.00
                          Total Rent and Related Costs             0.00            0.00          0.00           0.00               0.00
  6120               Electricity and Water                         0.00            0.00          0.00           0.00               0.00
  6130               Communication
  6131                    Telephone                                0.00            0.00          0.00           0.00               0.00
  6132                    Internet                                 0.00            0.00          0.00           0.00               0.00
  6133                    Communication - Other                    0.00            0.00          0.00           0.00               0.00
                          Total Communication                      0.00            0.00          0.00           0.00               0.00
  6140               Office Rental & Utilities - Other             0.00            0.00          0.00           0.00               0.00
                     Total Office Rental & Utilities               0.00            0.00          0.00           0.00               0.00
  6200           Third Party Services
  6210               Accounting                                    0.00            0.00          0.00           0.00               0.00
  6220               Consulting                                    0.00            0.00          0.00           0.00               0.00
  6230               Legal Fees                                    0.00            0.00          0.00           0.00               0.00
  6240               IT Support                                    0.00            0.00          0.00           0.00               0.00
  6250               Insurance                                     0.00            0.00          0.00           0.00               0.00
  6260               Printing and Reproduction                     0.00            0.00          0.00           0.00               0.00
  6270               Computer & Equipment Repairs                  0.00            0.00          0.00           0.00               0.00
  6280               Third Party Services - Other                  0.00            0.00          0.00           0.00               0.00
                     Total Third Party Services                    0.00            0.00          0.00           0.00               0.00
  6300           Misc Admin Costs
  6310               Stationery Office Supplies                    0.00            0.00          0.00           0.00               0.00
  6320               Dues and Subscriptions                        0.00            0.00          0.00           0.00               0.00
  6330               Licenses and Permits                          0.00            0.00          0.00           0.00               0.00
  6340               Meals and Entertainment                       0.00            0.00          0.00           0.00               0.00
  6350               Postage and Delivery                          0.00            0.00          0.00           0.00               0.00
  6360               Depreciation Expense                          0.00            0.00          0.00           0.00               0.00
  6570               Equipment Rental                              0.00            0.00          0.00           0.00               0.00
  6380               Misc Admin Costs - Other                      0.00            0.00          0.00           0.00               0.00
                     Total Misc Admin Costs                        0.00            0.00          0.00           0.00               0.00
  6400           General and Administrative Exp - Other            0.00            0.00          0.00           0.00               0.00
                 Total Miscellaneous Expenses                      0.00            0.00          0.00           0.00               0.00

           Total Expenses                                         0.00            0.00          0.00            0.00               0.00

           Net Income                                             0.00            0.00          0.00            0.00               0.00




                                                                                                                - 95 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                        .


Annex 43.          Balance Sheet

CAI-Asia
BALANCE SHEETS
As of January 31, 2007
(Interim-unaudited)




                                         Total   Grant 1   Grant 2   Grant 3   Grant 4   Grant 5     General Fund
CURRENT ASSETS
 Cash and cash equivalents           $
 Receivables and advances
 Other current assets
     Total current assets
PROPERTY AND EQUIPMENT - net
 Leasehold improvements
 Furniture and fixtures
 Office Equipment


 Less: Accumulated depreciation
     Net
OTHER ASSETS
 Refundable deposits
 Others
     Total other assets

Total Assets                         $


LIABILITIES AND FUND BALANCE
CURRENT LIABILITIES
 Accounts payable                    $
 Accrued expenses
 Bank loans
 Current portion of Long-term debt
  Total Current Liabilities
LONG-TERM DEBT
Fund Balance
 Grants
 General Fund


Total Liabilities and Fund Balance   $




                                                                                                   - 96 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                                                                                .



Annex 44.             Statement of Cash Flows

CAI-Asia
STATEMENTS OF CASH FLOW (In US$)
FOR THE MONTH ENDED JANUARY 31, 2007

                                                                                       Total     Grant 1      Grant 2   Grant 3   Grant 4   Grant 5   General Fund
Cash flow from/ (used in) operating activities
Net Income
Adjustments to reconcile net profit to cash flow from / (used in) operating
activities
Non-cash items included in net income and other adjustments:
 Depreciation of property and equipment
 Net loss / (gain) from investing activities
 Net loss / (gain) from financing activities
 Prepayments and other assets
 Accrued expenses and other liabilities
Net cash flow from/ (used in) operating activities

Cash flow from/ (used in) investing activities
Purchase of property and equipment
Disposal of property and equipment
Net (investment in) / divestment of financial investments
Net cash flow from/ (used in) investing activities

Cash flow from/ (used in) financing activities
Short-term bank loans
Issuance of long-term debt, including financial liabilities designated at fair value
Net Cash flow from/ (used in) financing activities

Effects of exchange (used in) financing activities
Net cash flow from/rate differences                                                     46,561      -11,133
Net increase / (decrease) in cash equivalents

Cash and cash equivalents, beginning of the period
Cash and cash equivalents, end of the period




                                                                                                                                                           - 97 -
CAI-Asia Center Operations Manual: ANNEXES
Revised June 2010
                                                                                                      .


Annex 45.       Method for Calculating Charge-Out Rates


This annex details CAI-Asia Center’s method in determining charge out rates for projects.

Basic Formula for Calculating Charge Out Rates

The following basic formula is applied:

        Monthly charge rate = Basic salary costs + Social costs + Overhead costs

        Daily charge rate = [Basic salary costs + Social costs + Overhead costs] / 20 work
                            days per month

Where:
  • Basic salary costs are the gross remuneration costs per month, i.e. the pre-taxed amount
       that the Center pays for a staff member. Staff remuneration is based on salary bands
       approved by the Remuneration Committee of the Center’s Board of Trustees.

    •   Social costs, as per the Center’s Operations Manual, includes the following
           o Employers contribution to Social Security System – The amount applies to all job
                groups and salary ranges.
           o Employers contribution to Phil Health – The amount applies to all job groups and
                salary ranges.
           o 13th Month pay – Payment will be made on a pro-rated basis each month rather than
                at the end of the year.
           o This includes statutory holidays (11 days per year), incentive leaves (24 days per
                year, this includes annual leave and sick leave).

    •   Overhead costs which is based on Section 5 of ADB’s “Financial Proposal Standard Forms
        of the Recruitment of Consulting Firms for Technical Assistance for All Section Methods” The
        list of overhead costs applicable to the Center includes: office rent and building dues; light,
        power and water; telephone, internet, webhosting facilities; third-party services (accounting,
        audit, it support, insurance); office supplies and courier; taxes, licenses and permits;
        depreciation and amortization; travel and per diem; trainings, seminars and workshops; other
        expenses; and salary - non-billable/administration. Overhead costs are audited by the
        Center’s independent financial auditors on an annual basis. The audited overhead costs of
        the previous year (e.g. 2008) will be applied to the entire following year (e.g. 2009) and will
        be superseded when a new audited overhead costs is available.

        The overhead costs are applied pro rata to each staff member that works on projects (i.e.
        excluding administrative staff). This means that the total amount of overhead costs is
        divided by the number of chargeable staff, and this amount is the “overhead costs” used in
        the formula to calculate the charge out rates of individual staff members. Thus, the same
        overhead amount applies to each staff member.

•       The 20 work days per month are derived as follows: 365 day minus (104 weekends + 11
        public holidays + 24 incentive leave days) divided by 12 months = 18.8 work days (rounded
        up to 20 work days).




                                                                                                     98

								
To top