Question & AnswerQ&A (CDA Resolution NO. 36)
The main purpose of the Countrywide Development Fund is to develop the rural areas by meeting the maintenance and operating expenses of funded projects/activities and providing capital outlays for land acquisition/improvement, building structures, equipment, investment, and loan/grant outlays.
At the discretion of the President of the Philippines, each Congressman or Senator is allocated P12 million to support their development efforts through the Countrywide Development Fund.
Loan components of the Fund are channeled through government agencies or financial institutions that provide financial assistance to the rural sector, one of which is the Cooperative Development Authority (CDA).
First, the Congressman/Senator must request the Department of Budget and Management (DBM) for the release of funds specifying the amount and purpose. Upon approval, CDA arranges with the depository bank for the release and subsequently disburses funds to selected cooperatives after all requirements are met.
Policies include entering into a Memorandum of Agreement with the Congressmen/Senators, borrower cooperative selection by the Congressman/Senator, adherence to sound lending and business principles, submission of loan applications with feasibility studies, implementation plans, and monthly financial reports, and remittance of loan repayments to the National Treasury.
Borrower cooperatives must file a loan application with the CDA Extension Office with jurisdiction, submit a project feasibility study, supporting documents, board resolutions indicating their intention to borrow, and an implementation plan for monitoring loan use and project progress.
Cooperatives must submit monthly reports on actual operations, including a monthly cash flow statement and monthly financial statements to the CDA.
Repayments collected by the CDA are remitted to the National Treasury.
Grant outlays are given to federations for relending to affiliate cooperative members through a Revolving Fund. The fund is replenished through repayments plus interest, and income is partly used for institutional development and cooperative education, with strict monitoring and reporting requirements.
Utilization is monitored by a District Countrywide Development Fund Committee constituted by the Congressman/Senator or their representative and a representative from CDA. The grantee cooperative submits monthly financial reports to CDA through the Committee for analysis and feedback.