LTOM Final Book 1

UPDATED Copyright © Bureau of Local Government Finance, 2016
LOCAL TREASURY OPERATIONS MANUAL (LTOM) Telefax: (+632) - 522 - 8770 or 71

Wed: www.blgf.gov.ph
E-mail: blgf@blgf.gov.ph
BOOK 1 Published by:
Bureau of Local Government Finance

Department of Finance
8th Floor, EDPC Bldg., BSP Complex
Roxas Blvd., Metro Manila
Philippines 1004
Fiscal Organization of Local
Governments and the Local
Treasury Office
First Printing, 2008.

PHALTRA
2016 Revised Edition
Updated Local Treasury Operations Manual (LTOM)

All rights reserved.
Bureau of Local Government Finance
Department of Finance
No part of this book may be reproduced in any form or by any means without express
permission of the copyright owner and the publisher. existing laws, rules and regulation on local treasury operations.
Towards this end, the ULTOM shall serve as the basic reference for local treasurers in complying
with the performance standards and competencies required by DOF. Local Chief Executives (LCE)
are also encourage to read this manual to better appreciate the scope of the entire local treasury
ISBN: 978-971-94098-8-5 operations.
This manual shall be a work in progress integrating pertinent progressive laws, administrative
issuances as well as judicial and quasi-judicial decisions relative the local treasury operations.
And I endeavour those who prepared this manual to make themselves available for the next
revision.
Printed in the Philippines
Mabuhay and More Power.
Republic of the Philippines
DEPARTMENT OF FINANCE
Roxas Boulevard Corner Pablo Ocampo, Sr. Street
Manila 1004
MESSAGE
Local treasurers play a pivotal role in transforming LGUs to become a self-reliant community
capable of providing an efficient and effective delivery of basic services and implement local
development projects making them an effective partners in attaining national development
goals. The demand for local treasurers to perform professionally at a certain level of standards
has been my advocacy for the local government sector.
The timely issuance of the Updated Local Treasury Operations Manual (ULTOM) highlights the
DOF’s thrust in professionalizing the rank of the local treasurers. It is designed as a standard
reference for all local treasurers in order to attain a nationwide uniform implementations of
Updated Local Treasury Operations Manual (LTOM) 2

UPDATED LOCAL TREASURY OPERATIONS MANUAL
B. RATIONALE
A. INTRODUCTION
Recent developments for the last ten (10) years in areas of local public finance render some
This updated manual is a vital reference material and guide to all local treasurers, and should be provisions of the LTOM irrelevant to the operations of local treasury offices.
considered as a work in progress which shall further be updated regularly to be attuned to the
latest issuance of laws, policies, rules and regulations. There are cases that local treasurers and other local treasury officials unknowingly follow
superseded provisions of the LTOM. There are also reported complaints from the users that the
This manual has been developed through the support of the EU-PFM 2 project and the present LTOM book is bulky, voluminous and difficult to carry.
collaborative efforts of Bureau of Local Government Finance (BLGF) central and regional offices
and selected provincial, city and municipal treasurers. To address those pressing issues, there is a need to update the LTOM in order to harmonize its
provisions to the recent laws, policies, rules and regulations, to keep abreast with the modern
1. TITLE trends and to be functional for local treasurers and other stakeholders.
This Manual shall be known as the UPDATED LOCAL TREASURY OPERATIONS MANUAL, also 1. Major Changes in Fiscal Organization Since the LTOM was Issued
herein referred to as the ULTOM. It is an issuance of the Department .of Finance (DOF) thru the
BLGF pursuant to Article 456 of the implementing rules and regulations (IRR) of the Local The Local Government Code of 1991 (LGC) which is the basis for crafting the LTOM consolidated
Government Code of 1991 (LGC). and adopted the various provisions of different laws which sought to expand the autonomy of
local government (R.A. 2264, R.A. 2370 and R.A. 5185). Provisions of P.D. 231, as amended by
P.D. 426; P.D. 464 and P.D. 477 which were issued to improve the fiscal operations and
2. OVERVIEW organization of local government units were also adopted by the LGC.
On March 26, 2008 DOF issued Department Order No.10-08 promulgating the issuance of the Since the issuance of the LTOM in 2008 many laws were issued amending the certain provisions
LTOM to serve as a handy reference material for all provincial, city and municipal treasurers in of the LGC as well as other laws providing for changes in the fiscal operations of LGUs (RA. 9640,
discharging their mandated functions. Since then, LTOM has been a constant companion of local RA 9006, RA 10121).
treasury offices in their day to day operations.
All of these laws and other policies affecting the local fiscal organization and functions were
DOF has in recent years perceived the need to revise and update, improve and enhance the included in the development of the ULTOM and is summarized in Local Treasury Operations
LTOM to be relevant and attuned to modern trends as well as to recent laws, policies, rules and (LTO) Annex __ of this Manual.
regulations issued by oversight agencies. The revision made a complete overhaul of the LTOM in
terms of content groupings and physical printing and packaging to make it more functional to 2. Relationship of the Manual to Existing Laws, Issuances and Pronouncements of Other
the users. Fiscal and Regulatory Agencies
This updated manual is now prescribe for use by all provincial, city, municipal treasurers as a Basically, ULTOM is based from the provisions of the LGC as amended by R.A. 9640 and R.A.
reference for operation of local treasury offices. 9006 and its “Implementing Rules and Regulations,” particularly those that apply to the fiscal

and other related local treasury operations of LGUs. It also draws heavily from the Government illustrative examples and annexes for easy reference. This is intended to be used as a stand-
Accounting and Auditing Manual (GAAM) and the New Government Accounting System for LGUs alone reference for Local Treasurers. However, users of this manual are encourage to have the
(NGAS-LGU) of COA; the Updated Budget Operations Manual (UBOM) of the DBM; texts of the LGC and its IRR, GAAM, the NGAS-LGU, the UBOM and the myriad of compilation of
opinions/rulings and issuances of the BLGF; policies, regulations and opinions/rulings/decisions rulings, issuances and circulars for further readings.
of various bodies or agencies and authorities concerned with fiscal management and operations
such as the DOF, COA, DBM and NEDA and other authoritative private references. Consequently, Provisions contain in the manual are close paraphrase if not quoted verbatim from the relevant
this Manual does not seek to supersede these issuances and rulings of the fiscal agencies, but text of the laws, regulations, policies, issuances, opinions rulings and decisions. To achieve the
rather to reiterate and amplify their respective applications. purposes of this Manual, the valid portions of related provisions from various laws and
issuances are recast into a single provision, and parts of a single provision that apply to
different aspects of treasury operations, are reflected separately in the appropriate topics.
C. OBJECTIVES OF THIS MANUAL
The source or sources of particular sections or topics of this Manual are reflected in the text
The objectives of this MANUAL are as follows: itself, or set in parenthesis, to enable the user to refer to the original provision if desired.
Where a particular topic of this Manual refers to provisions quoted in another Chapter or
1. To provide Local Treasurers with an updated reference material that will guide them in Section, the location of the provisions alluded to is indicated.
discharging their duties and functions under the decentralized framework and environment
of the LGC; The content and description of each book is briefly presented below:
2. To provide Local Treasurers with a basis for developing their own capabilities to respond to BOOK ONE: FISCAL ORGANIZATION OF LOCAL GOVERNMENTS AND THE LOCAL TREASURER
the demands of their roles within the new LGU and fiscal management structures;
Book One describes the general concept of fiscal organization of Local Governments Units (LGUs)
3. To enable Local Treasurers to appreciate fully their powers, functions, and authorities, and to including the contemporary requirements for the creation of Provinces, Cities and Municipalities
relate these constructively with those of other officers concerned with fiscal functions; pursuant to the existing laws of the land. This book also discusses the qualifications and
appointments as well as the general and specific roles, duties and responsibilities of the local
4. To introduce to Local Treasurers the basic concepts and tools of the non-traditional functions treasurers and his/her assistant.
of LGUs in which they may be involved in whether as principals or as advisers.
Likewise, this book enumerates the role of the DOF thru BLGF in the supervision of all local
5. To serve as a guide to Local Treasurers and other fiscal officers in the management of the treasurers to ensure a uniform application of standard procedures in the operations of local
LGU’s financial affairs conforming to prescribed good governance practices and internal treasury offices.
control measures for greater, proper accountability and transparency.
Book One is consist of five (5) Chapters including Annexes, viz:
D. BRIEF DESCRIPTION THIS MANUAL Chapter 1. Fiscal Organization of Local Governments and the Local Treasurer
This manual is consist of four (4) books which are printed and packaged separately for easy Chapter 2. Qualifications and Appointment of the Local Treasurer and the Assistant
reference. Each book contains acronyms, table of contents, body of the manual, process flow, Treasurer

incorporates the concepts and guidelines on accountability and responsibility of local treasurers
Chapter 3. Roles, Duties and Responsibilities of the Local Treasurer and the procedures and remedies on cash shortages.
Chapter 4. Bonding of Local Treasurers and other LGU Accountable Officers Also included in this Book are the administrative, civil and criminal liabilities of the Local
Treasurer in the administration and custody of local government funds as well as the
Chapter 5. Administrative and Technical Supervision by the Bureau of Local Government examination of lgu books of account by the COA.
Finance (BLGF)
Book Three is consists of five (5) Chapters including Forms and Annexes.
Annexes
Chapter 1. Concept of Funds
BOOK TWO: RECEIPT AND COLLECTION OF INCOME, REVENUES AND OTHER FUND SOURCES Chapter 2. Concept of Appropriation, Allotment and Obligation
Book Two describes and enumerates the revenue-raising powers of provinces, cities, Chapter 3. Disbursement of Local Funds
municipalities and barangays as well as external sources of revenues of LGUs to support its
operations. Process flow, forms used, illustrative samples were provided in this book for clear Chapter 4. Fund Management Practices
understanding.
Chapter 5. Responsibility, Accountability and Liability of Local Treasurers for Funds
This book consists of four (4) chapters including Forms and Annexes.
Chapter 6. Examination of Accounts by the Commission on Audit
Chapter 1. Income from Local Sources
Chapter 7. Code of Conduct and Ethical Standards of Public Officials and Employees
Chapter 2. Income from External Sources
Chapter 8. Administrative, Civil and Criminal Liabilities of Local Treasurers in the
Chapter 3. Collection Procedures
Administration of Local Taxes, Fees and Charges
Chapter 4. Examination of Books of Accounts and Pertinent Records of Businesses by the
Forms and Annexes
Local Treasurer
Forms and Annexes

BOOK FOUR: DETAILED PROCEDURES ON THE ADMINISTRATION AND COLLECTION OF REAL
PROPERTY, BUSINESS TAX, FEES AND CHARGES AND OTHER FUND SOURCES
BOOK THREE: FUND MANAGEMENT PRACTICES, EXPENDITURES AND DISBURSEMENTS
This Book contains the legal provisions, policies and procedures, remedies, forms and reports on
the collection of Real Property Taxes, Business and Local Taxes, Fees and Charges, Local
Book Three discusses the fundamentals of fund management practices, expenditures and
Government Business Enterprise Operations, Credit Financing and Other Resource Mobilization.
disbursement process as a component of good local fiscal management. This Book also

This book also details the taxing powers of Provinces, Cities, Municipalities and Barangay that
distinguishes one from each other for easy reference.
This book consists of twelve (12) chapters including Forms and Annexes.
Chapter 1. Real Property Taxation
Chapter 2. Business and Other Local Taxes: Taxing Powers of Provinces
Chapter 3. Business and Other Local Taxes: Taxing Powers of Municipalities
Chapter 4. Business and Other Local Taxes: Taxing Powers of Cities
Chapter 5. Business and Other Local Taxes: Taxing Powers of Barangays
Chapter 6. General Guidelines on the Application of Business and Other Local Taxes
Chapter 7. The Community Tax
Chapter 8. Specific Applications of Authority to Tax Franchises
Chapter 9. Fees and Charges
Chapter 10. Local Government Enterprise Operations
Chapter 11. Credit Financing and Alternative Sources of Funds
Chapter 12. The Statement of Receipts and Expenditures (SRE) and Electronic Statement of
Receipt and Expenditures (eSRE) Financial Management Reporting System
Forms and Annexes

Acknowledgement
ACRONYMS
The Updated Local Treasury Operations Manual (Updated LTOM) was developed with technical
assistance grant from the European Union Public Financial Management 2 Project (Support to ACR - Abstract of Collection Report
the LGUs for More Effective and Accountable Public Finance Management), through a Technical ADB - Asian Development Bank
Working Group (TWG) composed of the Bureau of Local Government Finance (BLGF) Central ADP - Authority for Debit Payment
Office Directors and technical staff as well as the Regional Directors together with selected local AGDB - Authorized Government Depository Bank
treasurers. AJE - Adjusting Journal Entry
AO - Accountable Officer
Recognition is given to the members of the TWG who provided endless support during the AOM - Audit Observation Memorandum
drafting and review of the manual and conduct of the consultative and exposure workshops in APP - Annual Procurement Plan
three (3) clusters in Luzon, Visayas and Mindanao. ARMM - Autonomous Region in Muslim Mindanao
ARO - Allotment Release Order
Likewise, the support of the Honorable Secretary Cesar V. Purisima and Undersecretary Carlo A. BAC - Bids and Awards Committee
Carag and staff of the Department of Finance (DOF) has been invaluable in the realization of this BEI - Board of Election Inspectors
Manual. BIR - Bureau of Internal Revenue
BLGF - Bureau of Local Government Finance
BLT - Build-Lease-and Transfer
BMBE - Barangay Micro Business Enterprises
BOO - Build-Own-and Operate
BOT - Build-Operate-and Transfer
BRK - Barangay Record Keeper
BSP - Bangko Sentral ng Pilipinas
BT - Barangay Treasurer
BT - Build-and Transfer
BTO - Build-Transfer-and Operate
BTr - Bureau of the Treasury
CA - Certificate of Authority
CAO - Contract-Add-and Operate
CAMELS- Capital Adequacy, Asset Quality, Management, Earnings,
Liquidity and Sensitivity
CDF - Cash Disbursement Forecast
CFA - Cash Flow Analysis

CFF - Cash Flow Forecast HLURB - Housing and Land Use Regulatory Board
CHBReg - Cash On Hand and in Bank Register ICO - In-Charge of Office
CM - Credit Memo ICS - Inventory Custodian Slip
CN - Credit Notice IRA - Internal Revenue Allotment
CO - Capital Outlay IRR - Implementing Rules and Regulations
COA - Commission on Audit IT - Itinerary of Travel
COE - Current Operating Expenses IUEEU - Irregular, Unnecessary, Excessive, Extravagant or
COMELEC - Commission on Elections Unconscionable
CRAAF - Consolidated Report of Accountability for Accountable Forms JEV - Journal Entry Voucher
CRDReg - Cash Receipts and Deposits Register JMC - Joint Memorandum Circular
CRF - Cash Receipts Forecast LBM - Local Budget Matrix
CSB - Certificate of Settlement and Balances LBP - Land Bank of the Philippines
CSC - Civil Service Commission LCE - Local Chief Executive
CT - Community Tax LDP - Local Development Plan
CTC - Community Tax Certificate LDRRMF - Local Disaster Risk Reduction and Management Fund
DBC - Deputized Barangay Collector LFC - Local Finance Committee
DBM - Department of Budget and Management LGC - Local Government Code
DBP - Development Bank of the Philippines LGU - Local Government Unit
DepEd - Department of Education LMB - Land Management Bureau
DM - Debit Memo LO - Liquidating Officer
DOF - Department of Finance LOA - Letter of Authority
DOH - Department of Health LR - Liquidation Report
DOJ - Department of Justice LTO - Local Treasury Operations
DOST - Department of Science and Technology MB - Monetary Board
DOTC - Department of Transportation and Communication MC - Memorandum Circular
DV - Disbursement Voucher MDF - Municipal Development Office
EO - Executive Order MDFO - Municipal Development Fund Office
EU - European Union MMA - Metro Manila Area
eOR - Electronic Official Receipt MMDA - Metro Manila Development Authority
FE - Financial Expenses MOA - Memorandum of Agreement
GAAM - Government Accounting and Auditing Manual MOOE - Maintenance and Other Operating Expenses
GAO - General Auditing Office MOU - Memorandum of Understanding
GDF - Gender and Development Fund MRPAAO - Manual on Real property Appraisal and Assessment Operations
GF - General Fund MTOP - Motorized Tricycle Operators Permit
GOCC - Government Owned and Controlled Corporation NC - Notice of Charge
GSIS - Government Service Insurance System NCA - Notice of Cash Allocation

ND - Notice of Disallowance ROT - Rehabilitate-Operate-and Transfer
NEDA - National Economic and Development Authority RPT - Real Property Tax
NGAS - New Government Accounting System RPTAR - Real Property Tax Register
NIRC - National Internal Revenue Code RPTOP - Real Property Tax Order of Payment
NPC - National Power Corporation RRACCS - Revised Rules on Administrative Cases in the Civil Service
NPO - National Printing Officer SAM - State Audit Manual
NPV - Net Present Value SB - Sangguniang Barangay
NS - Notice of Suspension SCD - Summary of Collections and Deposits
NSO - National Statistics Office SCkI - Summary of Checks Issued
ObR - Obligation Request SCP - Summary of Cash Payments
ODA - Official Development Assistance SCR - Summary of Collections and Remittance
OIC - Officer-In-Charge SEF - Special Education Fund
OR - Official Receipt SIE - Statement of Income and Expenditures
PAR - Property Acknowledgement Receipt SKF - Sangguniang Kabataan Fund
PB - Punong Barangay SOE - Statement of Expenditures
PCF - Petty Cash Fund SPL - Special Leave Privilege
PCFReg - Petty Cash Fund Register SPPCV - Summary of Paid Petty Cash Vouchers
PCV - Petty Cash Voucher SRE - Statement of Receipts and Expenditures
PD - Presidential Decree SRS - Statement of Receipt Sources
PDAF - Priority Development Assistance Fund TDAF - Tax Data and Assessment Form
PI - Public Infrastructure TO - Travel Order
PNB - Philippine National Bank UBOM - Updated Budget Operations Manual
PO - Purchase Order VAT - Value Added Tax
PPE - Plant, Property and Equipment VDS - Validated Deposit Slip
PPSAS - Philippine Public Sector Accounting Standard WB - World Bank
PS - Personal Services
RA - Republic Act
RAAF - Report of Accountability for Accountable Forms
RAAO - Register of Appropriation, Allotments and Obligations
RAC - Registry of Appropriation and Commitments
RATA - Representation and Transportation Allowance
RCD - Report of Collections and Deposits
RCI - Report of Checks Issued
RIS - Requisition and Issue Slip
RMIT - Revised Manual of Instructions to Treasurers
ROO - Rehabilitate-Own-and Operate

TABLE OF CONTENTS
Chapter 1. FISCAL ORGANIZATION OF LOCAL GOVERNMENT UNITS (LGUs)...............................................2

Section 1. Legal Framework............................................................................................................................... 2
Section 2. Creation, Division, Merger, Abolition and Conversion of Province, Cities and Municipalities.............2
Section 3. Organizational Structures: Some Models for the Treasurer’s Office...................................................2
Chapter 2. QUALIFICATIONS AND APPOINTMENT OF THE LOCAL TREASURER AND THE ASSISTANT TREASURER 2
Section 4. Authority of the Secretary of Finance to Appoint Local Treasurer and Assistant Treasurer................2
Section 5. Authority of the Local Chief Executive (LCE) over the Local Treasurer and Assistant Treasurer.........2
Section 6. Qualifications of a Local Treasurer and Assistant Treasurer...............................................................2
Section 7. Processing of the Appointments of Provincial, City, and Municipal Treasurers and Assistant Provincial, City, and Municipal Treasurers 2
Section 8. Designation of Acting / Officer-In-Charge (OIC) / Incharge of Office (ICO) Provincial / City / Municipal Treasurers and Assistant Treasurers 2
Section 9. Distinction of Designations as Acting Treasurer and Officer-in-Charge (OIC)......................................2
Section 10. Automatic Succession of the Assistant Provincial/City/Municipal Treasurer as Acting/OIC/ICO Provincial/City/Municipal Treasurer 2
Section 11. Designation in the Absence of an Assistant Treasurer......................................................................2
Section 12. Detail or Temporary Assignment of Local Treasurers and Assistant Local Treasurers.....................2
Section 13. Salaries of Local Treasurers and Assistant Local Treasurers under Preventive Suspension...............2
Section 14. Salaries of Local Treasurers and Assistant Local Treasurers during Attendance in Administrative, Civil or Criminal Investigation 2
Section 15. Approval and Grant of Application for Leave of Absence of Local Treasurers and Assistant Local Treasurers 2
Chapter 3. ROLES, DUTIES, AND RESPONSIBILITIES OF THE LOCAL TREASURER..........................................2

Section 16. Powers and Duties of Local Treasurer and Assistant Treasurer........................................................2
Section 17. The Local Treasurer's Role in Boards and Committees Created Pursuant to the LGC and Other Laws2
Section 18. Treasurer's Role in National and Local Elections pursuant to the Omnibus Election Code...............2

Chapter 4. BONDING OF LOCAL TREASURERS AND OTHER LGU ACCOUNTABLE OFFICERS.........................2
Section 19. Legal Basis for the Bonding of Local Treasurers and Other LGU Accountable Officers......................2
Section 20. Guidelines on Bonding of Local Treasurers and Accountable Officers..............................................2
Section 21. Schedule of Cash Accountability and the Corresponding Bonds.......................................................2
Section 22. Renewal........................................................................................................................................... 2
Section 23. Increase in the Amount of Accountability........................................................................................ 2
Section 24. Accountable Officers Considered Unsafe Risks.................................................................................2
Section 25. Cancellation of Bond........................................................................................................................ 2
Section 26. Effect of Cancellation....................................................................................................................... 2
Section 27. The Fidelity Fund.............................................................................................................................. 2
Section 28. Extent of Liability............................................................................................................................. 2
Section 29. Validity of Fidelity Bonds.................................................................................................................. 2
Section 30. Adjudication and Payment of Claims against the Fidelity Fund........................................................2
Chapter 5. ADMINISTRATIVE AND TECHNICAL SUPERVISION BY THE BUREAU OF LOCAL GOVERNMENT FINANCE (BLGF) 2
Section 31. Administrative and Technical Supervision........................................................................................ 2
Section 32. Conduct of Local Treasury Operations Evaluation............................................................................2
Annexes....................................................................................................................................................2
Annex 1: Minimum Documentary Requirement for Specific Expense Item........................................................2
Annex 2: Maintenance and Other Operating Expenses (MOOE).........................................................................2
Chapter 1. FISCAL ORGANIZATION OF LOCAL GOVERNMENT UNITS (LGUs)
Section 1. Legal Framework
A. The President of the Philippines shall exercise general supervision over local
governments. Provinces with respect to component cities and municipalities, and cities
and municipalities with respect to component “barangays”, shall ensure that the acts of

their component units are within the scope of their prescribed powers and functions. of its “sanggunian”, unless some other time is fixed by the law or ordinance creating it.
Each Local Government Unit (LGU) shall have the power to create its own sources of (Sec. 14, LGC)
revenues and to levy taxes, fees and charges subject to such guidelines and limitations
as the Congress may provide, consistent with the basic policy of local autonomy. Such F. Every LGU, as a corporation, shall have the following powers:
taxes, fees, and charges shall accrue exclusively to the local governments. LGUs shall
have a just share, as determined by law, in the national taxes which shall be 1. To have continuous succession in its corporate name;
automatically released to them.(Article X, Secs. 4-6, Phil. Constitution) 2. To sue and be sued;
3. To have and use a corporate seal;
B. LGUs shall have the power and authority to establish an organization that shall be 4. To acquire and convey real or personal property;
responsible for the efficient and effective implementation of their development plans, 5. To enter into contracts; and
program objectives and priorities; to create their own sources of revenues and to levy 6. To exercise such other powers as are granted to corporations, subject to the
taxes, fees, and charges which shall accrue exclusively for their use and disposition and limitations provided in this Code and other laws.(Sec. 22 (a), LGC)
which shall be retained by them; to have a just share in national taxes which shall be
automatically and directly released to them without need of any further action; to have G. Unless otherwise provided in the LGC, no contract may be entered into by the Local
an equitable share in the proceeds from the utilization and development of the national Chief Executive (LCE) in behalf of the LGU without prior authorization by the
wealth and resources within their respective territorial jurisdictions including sharing “sanggunian” concerned. A legible copy of such contract shall be posted at a
the same with the inhabitants by way of direct benefits; to acquire, develop, lease, conspicuous place in the provincial capitol or the city, municipal or “barangay hall”. It
encumber, alienate, or otherwise dispose of real or personal property held by them in shall enjoy full autonomy in the exercise of their proprietary functions and in the
their proprietary capacity and to apply their resources and assets for productive, limitations provided in the LGC and other applicable laws. (Sec. 22 (c), LGC)
developmental, or welfare purposes, in the exercise or furtherance of their
governmental or proprietary powers and functions and thereby ensure their H. Every local government unit shall exercise the powers expressly granted and those
development into self-reliant communities and active participants in the attainment of necessarily implied therefrom, as well as powers necessary, appropriate, or incidental
national goals.(Sec. 18, LGC) for its efficient and effective governance, and those which are essential to the
promotion of the general welfare. Within their respective territorial jurisdictions, LGUs
C. Local governments shall be entitled to an equitable share in the proceeds of the shall ensure and support, among other things, the preservation and enrichment of
utilization and development of the national wealth within their respective areas, in the culture, promote health and safety, enhance the right of the people to a balanced
manner provided by law, including sharing the same with the inhabitants by way of ecology, encourage and support the development of appropriate and self-reliant
direct benefits 0.(Art. X, Sec. 7, LGC) scientific and technological capabilities, improve public morals, enhance economic
prosperity and social justice, promote full employment among their residents, maintain
D. Every LGU created or recognized under the Local Government Code (LGC) is a body peace and order, and preserve the comfort and convenience of their inhabitants.(Sec.
politic and corporate endowed with powers to be exercised by it in conformity with law. 16, LGC)
As such, it shall exercise powers as a political subdivision of the national government
and as a corporate entity representing the inhabitants of its territory.(Sec. 15, LGC) I. The financial affairs, transactions, and operations of LGUs shall be governed by the
following fundamental principles and policies, to wit:
E. When a new local government unit is created, its corporate existence shall commence
upon the election and qualification of its chief executive and a majority of the members

1. No money shall be paid out of the local treasury except in pursuance of an 8.1 Special Education Fund(SEF) which shall consist of the respective shares
appropriations ordinance or law;(Sec. 305 (a), LGC) of provinces, cities, and municipalities in the proceeds of the additional tax
on real property to be appropriated for purposes prescribed in Sec. 272 of
2. Provincial, city and municipal treasurers shall open and maintain in the name of the LGC;
their respective local government units separate depository accounts for each
fund only with government financial institutions (GFIs) that have universal bank 8.2 Trust Funds(TF) which shall consist of private and public monies which
license and CAMELS rating of at least “3”.(DOF Circular No. 001-2015, dated June 1, have officially come into the possession of the local government or of a
2015); local government official as trustee, agent or administrator, or which have
been received as a guaranty for the fulfillment of some obligation. A trust
3. Local government funds and monies shall be spent solely for public purposes(Sec. fund shall only be used for the specific purpose for which it was created or
305 (b), LGC); for which it came into the possession of the local government unit. (Sec.
2, COA Circular No. 92-382 dated July 3, 1992; Sec. 309, LGC).Trust funds in
4. Local revenue is generated only from sources expressly authorized by law or the local treasury shall not be paid out except in fulfillment of the purpose
ordinance, and collection thereof shall at all times be acknowledged properly Sec. for which the trust was created or the funds received(Sec. 305 (e), LGC);
305 (c), LGC);
8.3 Special Accounts in the General Fund - Local government units shall
5. For every payment received, the collecting officer shall immediately issue an maintain special accounts in the general fund for the following:
official receipt in acknowledgment thereof. The receipt may be in the form of
cash tickets and the like, or officially numbered receipts subject to proper custody, i. Public utilities and other economic enterprises;
accountability and audit (Sec. 4, COA Circular No. 92-382 dated. July 3, 1992);
ii. Loans, interests, bond issues, and other contributions for specific
6. All monies officially received by a local government officer in any capacity or on purposes; and
any occasion shall be accounted for as local funds, unless otherwise provided by
law(Sec. 305 (d), LGC); iii. Development projects funded from the share of the local
government unit concerned in the internal revenue allotment and
7. Provinces, cities and municipalities shall maintain a General Fund which shall be such other special accounts which may be created by law or
used to account for such monies and resources as may be received by and ordinance (Sec. 313, LGC);
disbursed from the local treasury. The General Fund shall consist of monies
and resources of the local government which are available for the payment of 9. Receipts, transfers, and expenditures involving the foregoing special accounts
expenditures, obligations or purposes not specifically declared by law as shall be properly taken up thereunder(Sec. 313, LGC);
accruing and chargeable to, or payable from, any other fund (Sec. 1, COA
Circular No. 92-382 dated July 3, 1992; Sec. 308, LGC); 10. Profits or income derived from the operation of public utilities and other
economic enterprises, after deduction for the cost of improvement, repair and
8. There shall also be maintained in every Provincial, City or Municipal Treasury the other related expenses of the public utility or economic enterprise concerned,
following special funds: shall first be applied for the return of the advances or loans made therefor. Any

excess shall form part of the general fund of the local government unit It must be contiguous, unless it comprises two or more
concerned.(Sec. 313, LGC); islands or is separated by a local government unit
independent of the others; properly identified by metes
3 Land Area
11. Every officer of the local government unit whose duties permit or require the and bounds with technical descriptions; and sufficient
possession or custody of local funds shall be properly bonded, and such officer to provide for such basic services and facilities to meet
shall be accountable and responsible for said funds and for the safekeeping the requirements of its populace.
thereof in conformity with the provisions of law(Sec. 305 (f), LGC); and
2. Compliance with income, population and land area shall be attested to by the
12. Local governments shall formulate sound financial plans, and local budgets shall Department of Finance (DOF), Philippine Statistics Authority (PSA), and the Land
be based on functions, activities, and projects, in terms of expected results. (Sec. Management Bureau (LMB), respectively.(Sec. 7, LGC)
305 (g), LGC)
3. Also, no creation, division, merger, abolition, or substantial alteration of
Section 2. Creation, Division, Merger, Abolition and Conversion of Province, Cities and boundaries of LGUs shall take effect unless approved by a majority of the votes
Municipalities. –an LGU may be created, divided, merged, abolished, or its boundaries cast in a plebiscite called for the purpose in the political unit or units directly
substantially altered either by law enacted by Congress in the case of a province, city, affected. Said plebiscite shall be conducted by the Commission on Elections
municipality, or any other political subdivision, or by ordinance passed by the “sangguniang (COMELEC) within one hundred twenty (120) days from the date of effectivity of
panlalawigan or sangguniang panlungsod” concerned in the case of a “barangay” located within the law or ordinance effecting such action, unless said law or ordinance fixes
its territorial jurisdiction, subject to such limitations and requirements prescribed in the LGC. another date.
(Sec. 6, LGC)
b) Requirements for the Creation of Province, Cities and Municipalities. - A Province, City,
a) Common Requirements for Creation and Conversion of Province and City: Municipality (P/C/M) and Highly Urbanized City (HUC) may be created in accordance
with the criteria provided for in the LGC, viz:
1. As a general rule, the creation of an LGU or its conversion from one level to another
level shall be based on three (3) verifiable indicators of viability and projected 1. Creation of a Province:
capacity to provide services, to wit:
1.1 A province may be created if it has an average annual income, as certified by
the Department of Finance (DOF) thru the Bureau of Local Government
INDICATORS Finance (BLGF), of not less than Twenty Million Pesos (₱20,000,000.00) based
It must be sufficient, based on acceptable standards, to on 1991 constant prices and either of the following requisites:
provide for all essential government facilities and
1 Income services and special functions commensurate with the i. A contiguous territory of at least Two Thousand (2,000) square
size of its population, as expected of the local kilometers, as certified by the Land Management Bureau of the
government unit concerned. Department of Environment and Natural Resources (DENR); or
It shall be determined on the total number of
2 Population inhabitants within the territorial jurisdiction of the local
government unit concerned.

ii. A population of not less than Two Hundred Fifty Thousand (250,000) comprises two (2) or more islands. Also, the average annual income shall
inhabitants as certified by the National Statistics Office (NSO) now include the income accruing to the general fund, exclusive of special funds,
Philippines Statistics Authority (PSA). transfers, and non-recurring income. (RA 90091, amending Sec. 450 of the
LGC)
1.2 The average annual income shall include the income accruing to the general
fund, exclusive of special funds, trust funds, transfers and non-recurring 2.3 A city may either be Component or Highly Urbanized. Provided, however, that
income. the criteria established in the LGC shall not affect the classification and
corporate status of existing cities.
1.3 Provided, that, the creation thereof shall not reduce the land area,
population, and income of the original unit or units at the time of said 2.4 Independent component cities are those component cities whose charters
creation to less than the minimum requirements prescribed herein. Also, the prohibit their voters from voting for provincial elective officials. Independent
territory need not be contiguous if it comprise two (2) or more islands or is component cities shall be independent of the province. (Sec. 451, LGC)
separated by a chartered city or cities which do not contribute to the income
of the province.(Sec. 461, LGC) 3. Creation of a Municipality – A municipality may be created, divided, merged,
abolished, or its boundary substantially altered only by an Act of Congress and
subject to the approval by the majority of the votes cast in the plebisciteto be
2. Creation of a City: conducted by the COMELEC in the local government unit or units directly affected.
Except as may otherwise be provided in the said Act, the plebiscite shall be held
2.1 A municipality or a cluster of “barangays” may be converted into a within one hundred twenty (120) days from the date of its effectivity. (Sec. 441,
component city if it has a locally generated average annual income, as LGC)
certified by the DOF thru the BLGF, of at least One Hundred Million Pesos
(₱100,000,000.00) for the last two (2) consecutive years based on 2000 3.1 The requisites for creation of the municipality are the following:
constant prices, and if it has either of the following requisites:
i. AnAverage Annual Income, as certified by the Provincial Treasurer, of at
i. A contiguous territory of at least One Hundred (100) square kilometers, least Two Million five Hundred Thousand Pesos (₱2,500,000.00) for at
as certified by the LMB; or least two (2) consecutive years based on 1991 constant prices;
ii. A population of not less than One Hundred Fifty Thousand (150,000) ii. A population of at least twenty-five thousand (25,000) inhabitants, as
inhabitants, as certified by the NSO now PSA. certified by the National Statistics Office; and
2.2 The creation thereof shall not reduce the land area, population and income of iii. A contiguous territory of at least fifty (50) square kilometers, as certified
the original unit or units at the time of said creation to less than the minimum by the Land Management Bureau.
requirements prescribed herein. The territorial jurisdiction of a newly-created
city shall be properly identified by metes and bounds. The requirement on
land area shall not apply where the city proposed to be created is composed
1
of one (1) or more islands. The territory need not be contiguous if it An Act Amending section 450 of R.A. 7160, by increasing the Average Annual Income Requirement for a Municipality or Cluster of
Barangays to be Converted into a Component City

3.2 Provided, That the creation thereof shall not reduce the land area, population iii. Plebiscite - Within One Hundred Twenty (120) days from the declaration
or income of the original municipality or municipalities at the time of said of the President of the Philippines or as specified in the declaration, the
creation to less than the minimum requirements prescribed. COMELEC shall conduct a plebiscite in the City proposed to be converted.
Such plebiscite shall be preceded by a comprehensive information
3.3 The Average Annual Income shall include the income accruing to the General campaign conducted by the COMELEC with the assistance of national and
Fund of the municipality concerned, exclusive of special funds, transfers and local government officials, media, NGOs and other interested parties.
non-accruing income.
4.3 Cities, which do not meet the above requirements, shall be considered
3.4 The territorial jurisdiction of a newly created municipality shall be properly component cities of the province in which they are geographically located. If
identified by metes and bounds. The requirement on land area shall not apply a component city is located within the boundaries of two (2) or more
where the municipality proposed to be created is composed of one (1) or provinces, such city shall be considered a component of the province of
more islands. The territory need not be contiguous if it comprises two (2) or which it is used to be a municipality. Qualified voters of highly urbanized
more islands. (Sec. 442, LGC) cities shall remain excluded from voting for elective provincial officials.
4. Highly Urbanized Cities (HUC): 4.4 Unless otherwise provided in the Constitution or the LGC, qualified voters of
independent component cities shall be governed by their respective
4.1 Cities with a minimum population of Two Hundred Thousand (200,000) charters, as amended, on the participation of voters in provincial elections.
inhabitants, as certified by the PSA, and with the latest annual income of at Qualified voters of cities who acquired the right to vote for elective
least Fifty Million Pesos (₱50,000,000.00), based on 1991 constant prices, as provincial officials prior to the classification of said cities as highly urbanized
certified by the City Treasurer, shall be classified as HUC. (Sec. 452, LGC) after the ratification of the Constitution and before the effectivity of the LGC,
shall continue to exercise such right. (Sec. 452, LGC)
4.2 Article 12 (b) of the Implementing Rules and Regulations (IRR) of the LGC, the
procedures for converting a component City into a HUC are as follows: c) Fiscal Procedure for the merger/consolidation or abolition of Local Government Units
(LGUs).-
i. Income - The interested City shall submit to the Office of the President of
the Philippines a resolution of its “sanggunian” adopted by a majority of 1. Division and merger of existing LGUs units shall comply with the same requirements
all its members in a meeting duly called for the purpose, approved and herein prescribed for their creation: Provided, however, that such division shall not
endorsed by the City Mayor. Said resolution shall be accompanied by a reduce the income, population, or land area of the local government unit or units
certification as to income and population. concerned to less than the minimum requirements prescribed in the LGC: Provided,
further, that the income classification of the original LGUs shall not fall below its
ii. Declaration of Conversion - Within Thirty (30) days from receipt of such current classification prior to such division. The income classification of LGUs shall
resolution, the President of the Philippines shall, after verifying that the be updated within six (6) months to reflect the changes in their financial position
income and population requirements have been met, declare the City as resulting from the increased revenues as provided herein.(Sec. 8, LGC)
highly urbanized. (Sec. 453, LGC)
2. An LGU may be abolished when its income, population, or land area has been
irreversibly reduced to less than the minimum standards prescribed for its creation

under the LGC, as certified by the national agencies mentioned in Sec. 7 of the
same, to Congress or to the “sanggunian” concerned, as the case may be. The law 4. The financial requirements of the provinces, cities, municipalities, or “barangay” so
or ordinance abolishing an LGU shall specify the province, city, municipality, or created, divided, or merged shall be provided by the Regional Assembly out of the
“barangay” with which the local government unit sought to be abolished will be general funds of the Regional Government. The holding of a plebiscite to determine
incorporated or merged.(Sec. 9, LGC) the will of the majority of the voters of the areas affected by the creation, division,
merger, or whose boundaries are being altered as required by the LGC, shall,
d) Creation, Division or Abolition of Provinces, Cities, Municipalities or “Barangay” in the however, be observed. The Regional Assembly may also change the names of LGU,
Autonomous Region in Muslim Mindanao (ARMM).– public places and institutions, and declare regional holidays. (Art. XI, Sec. 19, RA
90542)
1. The Autonomous Region in Muslim Mindanao (ARMM) shall remain an integral and
inseparable part of the national territory of the Republic as defined by the Section 3. Organizational Structures: Some Models for the Treasurer’s Office. –
Constitution and existing laws. The Autonomous Region shall be governed and
administered in accordance with the laws enacted by the Regional Assembly and by 1. The Various organizational models for the Treasurer’s Office indicate its major
RA 9054. (Art. III, Sec. 1, RA 9054) divisions which, in turn, are the functional divisions of the office.The treasurer’s
office may create a Computer Service Unit to administer and sustain the
2. The legislative power of the autonomous government shall be vested in the implementation of information technology-based system or processes in the local
Regional Assembly except to the extent that it is reserved to the people by treasury office
provisions on initiative and referendum as provided by law. The Regional Assembly
shall be composed of Members elected by popular vote, with three (3) members 2. For a Provincial Treasurer’s Office, the basic functional divisions are directly under
elected from each of the legislative districts. There shall be sectoral representatives the Provincial Treasurer. These are the following:
in the Regional Assembly whose number shall not exceed fifteen percent (15%) of
the total number of elected members of the Regional Assembly coming from the 2.1 Administrative Division
agricultural, labor, urban poor, disabled, indigenous cultural communities, youth,
and women sectors. The Regional Assembly may enact legislation to provide for the 2.2 Treasury Operations Review Division;
representation of other sectors. (Art. VI, Secs. 1-3, RA 9054)
2.3 Revenue Operations Division;
3. The Regional Assembly may create, divide, merge, abolish, or substantially alter
boundaries of provinces, cities, municipalities, or “barangay” in accordance with the 2.4 Cash Disbursement Division; and
criteria laid down by the LGC, subject to the approval by a majority of the votes cast
in a plebiscite in the political units directly affected. The Regional Assembly may 2.5 Cash Receipt Division
prescribe standards lower than those mandated by the LGC, in the creation,
division, merger, abolition, or alteration of the boundaries of provinces, cities,
municipalities, or “barangay”. Provinces, cities, municipalities, or “barangay”
created, divided, merged, or whose boundaries are altered without observing the
standards prescribed by the LGC, shall not be entitled to any share of the taxes that
2
are allotted to the LGU under the provisions of the LGC. An Act To Strengthen And Expand The Organic Act For The Autonomous Region In Muslim Mindanao, Amending For The Purpose
Republic Act No. 6734, As Amended

present in all provinces and municipalities, it has at least five major functional
divisions, namely:
3.1 Administrative Division/Section;
3.2 Treasury Operations Review Division/Section;
Figure 1. Organizational Structure of the Treasurer’s Office 3.3 Cash Division/Section;
3.4 Real Estate Division; and
Provincial 3.5 Business Tax Division/Section

Treasurer
Figure 2. Organizational Structure of the City Treasurer’s Office
Assistant Provincial
Assistant Provincial City Treasurer
Treasurer
Treasurer Operation
Administration
Assistant City Assistant City
Treasurer Treasurer
Administrative Cash Receipt Treasury Operations Revenue Operations Administration Operations
Division Division Division Division
Treasury Operations Administrative Business Tax Cash
Division/Section Division Division/Section Division/Section
Cash Disbursement
Division
Real Estate
Division/Section
The Treasurer of component municipalities and cities are under the technical
supervision of the Provincial Treasurer’s Office.
4. Each division may be divided into sections, provided, that it is in accordance with
3. The Treasurer’s Office of the city appears to be more complex in structure than that the DBM rules and regulations. All these functional divisions are directly under the
of the province. It has, for instance, a Computer Services Unit which may not be supervisions of the City Treasurer/s who may be assisted by one or two Assistant
City Treasurer.

5. The organizational model for the Municipal Treasurer’s Office appears simplest c) No person shall be appointed in the career service of the local government if he is
among the three models. It has only two functional divisions – the cash Division and related within the fourth civil degree of consanguinity or affinity to the appointing or
the Revenue Division. An Administrative Section provides administrative support to recommending authority. (Sec. 79, LGC)3
the operations of the office. Below are some suggested organizational structures of
the treasurer’s Office at the various levels of local governments. d) The Secretary of Finance may delegatethe appointing authority over Provincial, City and
Municipal Treasurers and their Assistants, with the exception of Treasurers and
Figure 3. Organizational Structure of the Municipal Treasurer’s Office Assistant Treasurers in Metro Manila.
Section 5. Authority of the Local Chief Executive (LCE) over the Local Treasurer and Assistant
Municipal Treasurer Treasurer. –
The Treasurer shall be under the administrative supervision of the Governor or Mayor, as the
Assistant Municipal case may be, to whom he shall report regularly on the tax collection efforts in the LGU. (Sec. 470
Treasurer (b)(c), LGC)
Administrative Section 6. Qualifications of a Local Treasurer and Assistant Treasurer. –

Section
a) No person shall be appointed Treasurer unless, he/she possess the following
Revenue qualifications:
Cash Division Division
Chapter 2.QUALIFICATIONS AND APPOINTMENTOF THE LOCAL TREASURER ANDTHE 1. A citizen of the Philippines;
ASSISTANT TREASURER
2. A resident of the LGU concerned;
Section 4. Authority of the Secretary of Finance to Appoint Local Treasurer and Assistant
Treasurer. – 3. Of good moral character;
a) The appointment of a Treasurer shall be mandatory for Provincial, City and Municipal 4. A holder of a college degree preferably in commerce, public administration or
Governments (Sec. 470 (c), LGC)while the appointment of an Assistant Treasurer shall law from a recognized college or university;
be optional for provincial, city and municipal governments. (Sec. 471(b), LGC)
5. A first grade civil service eligible or its equivalent; and
b) The Treasurer shall be appointed by the Secretary of Finance from a list of at least three
(3) ranking, eligible recommendees of the Governor or Mayor, as the case may be, 6. Must have acquired experience in treasury or accounting service for at least five
subject to civil service law, rules and regulations (Sec. 470 (a)LGC). (5) years in the case of the City or Provincial Treasurer, and three (3) years in
the case of Municipal Treasurer.
3
CSC Resolution No. 1000170, dated 06 October 2010

5. Relevant Training – includes the successful completion of training courses,
(Sec. 470 (c) and471(b), LGC) scholarships, training grants and other capacity development interventions relevant
to the duties and functions of the position to be filled-up.
b) The Secretary of Finance, in the exercise of his/her appointing power, may institute
additional competency standards as criteria in the selection processsubject to civil 6. Rank – the hierarchy of the position in the organization/office/unit.
service rules and regulations.
7. Other significant factors as may be approved by the Secretary of Finance.
Section 7. Processing of the Appointments of Provincial, City, and Municipal Treasurers and
Assistant Provincial, City, and Municipal Treasurers. – The appointments of the Provincial, City, d) Submission of the following required documents:
or Municipal Treasurer shall be processed as follows:
1. Nomination/Recommendation Letter of the Local Chief Executive;
a) Nomination of at least three ranking eligible recommendees by the Local Chief
Executive; 2. Personal Data Sheet (CSC Form No. 212) with Service Record and copies of
certificate of training attended;
b) Screening/evaluation of at least three recommendees by the respective Selection and
Promotion Boards of the Regional and Central Offices of the BLGF, to determine the best 3. Position Description Form (BC-CSC Form I) duly accomplished;
qualified to the position involved, within thirty (30) days from the receipt of complete
documentary requirements; 4. Copy of CS Eligibility Rating (Authenticated);
c) The evaluation of the additional requirements of the recommendees, shall be in 5. Latest approved appointment of the recommendee;
accordance with the following criteria:
6. Certification of No Pending Administrative Case issued by the BLGF Regional Office
1. Performance Rating – based on the last two (2) Performance Ratings of the and the BLGF Central Office if the recommendee is a regular or designated
recommendees, which should at least be Very Satisfactory. OIC/ICO/Acting Treasurer or Assistant Treasurer. If the recommendee is not a duly
appointed or designated, the said certification should be issued by the office of the
2. Work Experience – either in the local treasury or accounting services for at least five Provincial Governor/City Mayor/Municipal Mayor;
(5) years in the case of Provincial or City Treasurer and Assistant Provincial or City
Treasurer and three (3) years in the case of the Municipal Treasurer and Assistant 7. Certification of No Relationship to Recommending Authority stating that the
Municipal Treasurer. Experience in budgeting, auditing and assessment service may recommendee is not related within the 4 th degree of consanguinity to the
be considered. recommending authority;
3. Education – at least college degree preferably in Commerce, Public Administration 8. Certificate of Residency issued by the Barangay Chairman and stating his/her good
or Law from a recognized college or university. moral character;
4. Eligibility – First Grade civil service eligibility or its equivalent.

9. Certificate of Availability of Funds (CAF) issued by the Local Accountant. For
Assistant Provincial/City/Municipal Treasurer, the CAF shall be issued by the Local 22. Certification on eSRE compliance of the LGU issued by the BLGF Central Office.
Treasurer;
23. Other documentary requirements as may be required by the CSC and the appointing
10. Certification stating the authorized salary rate, salary grade and item no. of the authority.
plantilla position duly signed by the Human Resource Management Officer (HRMO);
e) In case of modifications in appointment due to conversion of the local government (i.e.,
11. Waiver of acceptance of lower salary by the recommendee, if applicable; cityhood, division, merger, etc.), such shall be requested by the local chief executive
concerned and shall be screened and evaluated by the respective Selection and
12. Approved Plantilla/Personnel Schedule of the local government concerned; Promotion Boards of the Regional and Central Offices of the BLGF following the
foregoing procedures and requirements. (adjustment of salary upon conversion of the
13. Publication of Vacancy (CSC Bulletin/Daily Newspaper/Website) and Certification LGU and pending issuance of appointment for change of position title)
from the HRMO of the LGU as to the completion of the posting of Notice of Vacancy
in at least three (3) conspicuous places in the LGU;
14. Status of the regular incumbent, if applicable;

Section 8. Designation of Acting/Officer-In-Charge (OIC)/ Incharge of Office (ICO)
15. Marriage Contract, if applicable; Provincial/City/Municipal Treasurers and Assistant Treasurers. –
16. Transcript of Records authenticated by the school/university; a) Delegated authority of the BLGF Regional Directors to designate, subject to the
confirmation of the Secretary of Finance or his/her designated official-
17. Medical Clearance issued by a government hospital (PHO, CHO and MHO);
1. A designation order may be issued whenever a vacancy occurs in the positions of
18. Sworn Statement of Assets, Liabilities and Networth; Provincial, City, and Municipal Treasurers and Assistant Provincial, City, and
Municipal Treasurers, whether of a temporary or permanent nature, occasioned by
19. NBI Clearance (within the validity period); the following:
20. Ombudsman Clearance / Certification with status of pending complaint/case or a 1.1 Absence due to official travel, attendance in training, study leave,
copy of the resolution/decision; and scholarships, sick leave, vacation leave, maternity/paternity leave, special
assignments, and other similar circumstances
21. Performance Ratings using the CSC approved Strategic Performance Management
Rating System of the LGU or results from any other performance evaluation tool 1.2 Relief due to suspension orders and/or dismissal from the service arising from
instituted by DOF for the last two (2) rating periods prior to the application for the audit findings, or decisions of competent authorities on complaints or cases
appointment should at least be Very Satisfactory4 or its equivalent thereof. filed against the incumbent
4 1.3 Retirement from the service

Civil Service Commission Memorandum Circular No. 38 series of 1993

1.4 Transfer or detail to another station 1. Have complied with the minimum qualification requirements of the position
pursuant to the provisions of Sections 470 and 471 of the Local Government Code
1.5 Resignation of 1991 (R.A. 7160)5, except in case of dearth of recommendees,
1.6 Promotion 2. Must belong to the local treasury service over which the Secretary of Finance,
through the Bureau of Local Government Finance, exercises administrative and
1.7 Illness or death, or technical supervision;
1.8 Any otherform of sudden incapacity to perform official duties of the regular 3. Must have completed or passed any additional competency standards instituted by
incumbent. the Department of Finance (DOF), whether implemented directly by the DOF or by
an appropriate national government agency in partnership with the DOF; and
2. Designees can only be designated to positions within the level they are currently
occupying. First level personnel cannot be designated to perform the duties of 4. In the absence of qualified and ranking personnel from the Local Treasury Office,
second level positions(CSC Memorandum Circular No. 06, s. 2005).In special cases the ranking and qualified personnel from the local Accounting or Budget
where there is actual dearth of qualified and competent personnel to second level Offices(include assessment office), other related local offices,or BLGF Central or
positions, the next in rank may be considered for designation as last resort. Regional Offices may be considered, but they must first be detailed by the
appointing authority concerned to the Local Treasury Office to which the
3. The Regional Director shall designate an Acting/OIC Provincial, City, or Municipal recommendee will be assigned before the designation as Acting/OIC can be
Treasurer, or an Acting Assistant Treasurer, from the ranks of effected.
Provincial/City/Municipal Treasurers, Assistant Provincial/City/Municipal Treasurers,
or the qualified ranking officials/personnel of Local Treasury Offices, and BLGF c) Consent/Approval of Local Chief Executives Required for Designations – The
Central and Regional Offices, subject to the confirmation of the Secretary of Finance. designation of Acting/OIC Provincial/City/Municipal Treasurers and Acting/OIC-Assistant
Provincial/City/Municipal Treasurers shall require the prior written consent/approval of
4. The designation of an Acting/OIC-Assistant Provincial/City/Municipal Treasurer or the Local Chief Executives concerned. In case of designation in other local treasury
ActingAssistant Treasurer shall be made upon the written request and offices, the same requirement shall apply for the Local Chief Executives of both LGUs
recommendation of the Local Chief Executive concerned. where the designate comes from and where said designate is being designated, whether
on detail or in concurrent capacity, particularly as regards the continued payment of the
5. The recommendation for Acting/OIC-Municipal Treasurer or Acting/OIC-Assistant salaries and other benefits of the designee by the LGU where he/she is regularly
Municipal Treasurer shall likewise be endorsed by the Provincial Treasurer appointed, and the subsequent return to his/her regular station once deemed
concerned. necessary, and in the absence of any legal impediment.(DOF Department Personnel
Order No. 335-03, 1 October 2003)
(DOF Department Personnel Order No. 335-03 dated October 1, 2003)
b) Qualifications of the Acting/OIC Provincial/City/Municipal Treasurer and Acting/OIC-

Assistant Treasurers - The proposed designee should meet the following requirements: 5
See Sec. 6, this Manual

d) Requirements for Relief, Transfer or Detail of Treasurers and Assistant Treasurers – final,detail to other station, and other form of sudden incapacity to perform
Requests for relief, transfer, or detail of Treasurers and Assistant Treasurers shall be official duties may be temporarily filled-up through the designation of an
acted only for justifiable reasons and after compliance with the requisites of due Officer-in-Charge (OIC) for a period covering the absence of the regular
process, as follows: incumbent but nor more than one (1) year.
1. There exists a final audit finding of cash shortage properly validated by the 2.2 In cases where the position is deemed vacant in view of an executory, but not
Regional Director and/or his duly authorized representative and the Treasurer is final order of dismissal of the incumbent treasurer, the designation may be
ordered suspended pursuant to Section 348 of R.A. 7160 otherwise known as the renewed every year thereafter, subject to the consent of the designee and of
Local Government Code of 1991; the concerned Local Chief Executive.
2. The Treasurer has been formally charged with grave offense and the ninety (90)- 2.3 The incumbent or duly designated local treasurer may designate an Incharge-of-
day preventive suspension has expired, but formal investigation has not yet been Office (ICO) who is an official or employee from within the local treasury office
terminated. (DOF Department Personnel Order No. 335-03, 1 October 2003);and authorized, in a temporary capacity to discharge the duties and functions of the
incumbent in a caretaker capacity for a maximum of seven (7) working days,
3. The Treasurer consents thereto, in case of detail only. and with certain limitations of the powers and authority normally exercised by
the head of the office.
e) Period of Designation -
Responsibilities in caretaker capacity shall be confined only to day-to-day
1. Permanent Vacancy operations and administrative functions of the office to avoid disruption or
paralysis of the same with the temporary absence of the head of office, such as
Vacancies due to retirement, resignation, transfer, death, dismissal from the service signing authority over recurring transactions, and mandatory or statutory
which is final and other modes of separation which is permanent in nature may be obligations of the local government unit concerned. Such Order of Designation
temporarily filled-up through the designation of an Acting Treasurer/Assistant shall be noted by the Local Chief Executive concerned, copy furnished the BLGF
Treasurer for a non-extendable period of one (1) year unless sooner revoked, Regional Office for records purposes, without need for confirmation by the
except under the following conditions: Secretary of Finance.
1.1 When the filling up of the vacant position held by the designee is in process 2.4The designation of an OIC shall automatically terminate upon the return to duty
and the Acting Treasurer is considered for the position; of the regular incumbent, which should beexplicitly stated in the Order of
Designation issued by the proper authority. In extension may be authorized
1.2 When there is an actual dearth of personnel to be designated; upon proper representations made and under meritorious circumstances.
3. The Order shall specifically state the effectivity and expiration dates thereof.
2. Temporary Vacancy
4. It shall be the duty of the BLGF Regional Director concerned to ensure that expiring
2.1 Vacancies due to relief/suspension, leave of absence and official travel designations are properly monitored and immediately acted upon.
exceeding seven (7) working days, dismissal from the service which is not

f) Extension of Designation as Acting or OIC Provincial/City/Municipal Treasurer and
Acting/OIC-Assistant Treasurer– Extension of designation of an Acting or OIC Treasurer 4. Written request and recommendation of the Local Chief Executive(s) concerned;
need not require the written request and recommendation by the Local Chief
Executive, except as requested otherwise, and conditioned by a very satisfactory 5. Updated Personal Data Sheet, as prescribed by the CSC;
performance of the designee during the period of designation attested to by the
immediate supervisor, and the absence of any derogatory report and/or adverse 6. Copy of the plantilla of the local treasury office of the LGU concerned;
information against the designee received and verified by the Regional Office or the
Local Treasury Office.6 Each extension of designation shall be for a period of six (6) 7. Justification in case the most ranking personnel in the treasury office was not
months, unless sooner revoked. considered. In cases where there is no eligible personnel, a list of personnel in the
treasury office indicating their respective civil service eligibilities should be attached;
g) Processing and Submission of Designation– Except in vacancies caused by the sudden
illness, death or absconding of the incumbent, designations and extensions thereof shall 8. Authenticated Civil Service Eligibility by the Civil Service Commission (CSC) or its
be processed by the Regional Office within fifteen (15) days before the expected equivalent;
temporary or permanent vacancy7 and submitted to the BLGF Central Office within
fifteen (15) days from the issuance of the Order. Non-submission of the Order for 9. Sworn Statement of Assets and Liabilities of the immediate preceding year; and
confirmation and/or non-compliance thereof will render subject Order ineffective.
10. Performance Ratings using the CSC-approved Strategic Performance Rating System
h) Confirmation of Designation by the Secretary of Finance – Designations submitted by of the LGU or results from any other performance evaluation tool instituted by the
the Regional Director for confirmation shall be acted upon by the Secretary of Finance DOF, applied during the period of designation, should at least be Very Satisfactory
or his/her duly authorized confirming official within fifteen (15) days from receipt or its equivalent thereof.
thereof, otherwise, subject designation is deemed approved.
Section 9. Distinction of Designations as Acting Treasurer and Officer-in-Charge (OIC). –
i) Documentation – Designations submitted to the DOF, through the BLGF Central Office,
for confirmation shall be supported by the following documents: 8 a) Acting Treasurer/Assistant Treasurer -
1. Regional Special Personnel Order (RSPO) issued by the BLGF Regional Director; 1. An Acting Treasurer is an official or employee of the local government unit
concerned who is designated by the proper authority to discharge fully the powers
2. Comments/Recommendations of the BLGF Regional Director contained in an and responsibilities as head of the Provincial, City or Municipal Treasury Office, as a
endorsement; result of permanent vacancy of the position, with the same rights and prerogatives
of the latter, except the right to receive the salary appurtenant thereto. 9Provided,
3. Written endorsement of the Provincial Treasurer, in the case of the Acting/OIC - that such designation shall be made only if the designee already possess the
Municipal Treasurer and Acting/OIC- Assistant Municipal Treasurer; minimum qualifications required for the position at the time of designation.
6
Ibid, (6).
7
DOF Personnel Order No. 335-03 (7), 1 October 2003
8 9
Ibid, (9). Section 7.6, Local Administrative Regulations No. 1-85, February 7, 1985, Ministry of Finance

2. An Acting Assistant Treasurer is an official or employee of the local government unit Section 10. Automatic Succession of the Assistant Provincial/City/Municipal Treasurer as
concerned who is designated by the proper authority to discharge fully the powers Acting/OIC/ICO Provincial/City/Municipal Treasurer. –
and responsibilities of an Assistant Provincial/City/Municipal Treasurer, as a result
of permanent vacancy of the position, with the same rights and prerogatives of the a) In case of the absence or disability of the head of a bureau or office, his duties shall be
latter, except the right to receive the salary appurtenant thereto. 10Provided, that performed by the assistant head. When there are two or more assistant heads, the
such designation shall be made only if the designee already possess the minimum Secretary shall make the designation. In the absence of an assistant head, the Secretary
qualifications required for the position at the time of designation. may designate any officer or employee of the bureau or office as acting head without
additional compensation.(Sec.32, Chapter 6, Book IV. E.O. 292)
3. An Acting Provincial/City/Municipal Treasurer or Assistant Treasurer may receive
per diems at a rate authorized under existing rules and regulations. b) The regularly appointed Assistant Provincial/City/Municipal Treasurer who
automatically assumes as Acting o OIC-Provincial/City/Municipal Treasurer shall within
4. During the incumbency of the Acting Provincial/City/Municipal Treasurer or 24 hours notify directly the BLGF Regional Director concerned of the absence, sickness,
Assistant Treasurer, he/she shall be entitled to collect the representation death or any other reason of incapacity of the regular incumbent to discharge his/her
allowances authorized for the vacant position of Provincial/City/Municipal Treasurer functions, and of the date of his/her assumption.
or Assistant Treasurer.
c) Within 48 hours after receipt of the notice, the BLGF Regional Director shall issue the
b) Officer-in-Charge (OIC) - Order of Designation of the Assistant Provincial/City/Municipal Treasurer, subject to the
confirmation of the Secretary of Finance.
1. An OIC is an official or employee designated by proper authority in a temporary
capacity to avert paralyzation of the day to day operations of the office in the d) It shall be the duty of the BLGF Regional Director concerned to ensure that impending
meantime that the Provincial, City or Municipal Treasurer is temporary absent (CSC vacancies are properly monitored and immediately acted upon.
Resolution No. 000778 dated March 24, 2000).Provided, that such designation shall
be made only if the designee already possess the minimum qualifications required Section 11. Designation in the Absence of an Assistant Treasurer.–In cases where there is no
for the position at the time of designation. regularly appointed Assistant Provincial/City/Municipal Treasurer, the next ranking and qualified
personnel of the Local Treasury Office, who is duly bonded, may be designated as Acting or OIC
2. An OIC Provincial/City/Municipal Treasurer may receive per diems at a rate Provincial/City/Municipal Treasurer, as the case may be. If other ranking and qualified personnel
authorized under existing rules and regulations. of other offices outside of the Local Treasury Office of the local government unit concerned, who
is duly bonded, is considered due to dearth of qualified and competent personnel within the
3. During the incumbency of the OIC-Provincial/City/Municipal Treasurer, he/she shall local treasury office, he/she may be designated as Acting or OIC Provincial/City/Municipal
be entitled to collect the representation allowances authorized for the vacant Treasurer. The policies and procedures set under Section 10 and Section 12 shall be adopted.
position of Provincial/City/Municipal Treasurer.
Section 12. Detail or Temporary Assignment of Local Treasurers and Assistant Local
Treasurers. –
10
Section 7.6, Local Administrative Regulations No. 1-85, February 7, 1985, Ministry of Finance

a) A detail is the movement of an employee from one department or agency to another,
which is temporary in nature and does not involve a reduction in rank, status or salary Section 13. Salaries of Local Treasurers and Assistant Local Treasurers under Preventive
and does not require the issuance of another appointment. Suspension. –
b) The employee detailed receives his/her salary only from his/her mother unit/agency. a) The Department of Finance, the Office of the Ombudsman andthe Civil Service
Commission who have concurrent administrative disciplinary authorities may
c) Detail shall be allowed only for a limited period in the case of employees occupying preventively suspend any Local Treasurer and Assistant Local Treasurer, pending an
professional, technical and scientific position. If the employee believes that there is no investigation, if the charge against such officer or employee involved dishonesty,
justification for the detail, he may appeal his case to the Civil Service Commission. oppression or grave misconduct, or neglect in the performance of duty, or if there are
Pending the appeal, the decision to detail the employee shall be executory unless reasons to believe that the respondent is guilty of charges which would warrant his/her
otherwise ordered by the Commission. (Sec. 8, Rule VII, Omnibus Rules Implementing removal from office.11
Book V of E. O. No. 292, Revised Administrative Code of 1987 and Other Pertinent Civil
Service Laws) b) Any public officer against whom any criminal prosecution under a valid information
under R.A. 2019 otherwise known as the Anti-Graft and Corrupt Practices Act or under
d) Guidelines to be observed regarding the detail or temporary assignment of Local the provisions of the Revised Penal Code on bribery is pending in court, shall be
Treasurers and Assistant Local Treasurers: suspended from office. Should he/she be convicted by final judgment, he/she shall lose
all retirement gratuity benefits under any law, but if he/she is acquitted, he/she shall be
entitled to reinstatement and to the salaries and benefits which he/she failed to receive
1. The LCE requesting the detail or temporary assignment shall submit a written during suspension, unless in the meantime administrative proceedings have been filed
request to the Secretary of Finance. The request shall state the name of the against him/her.12
employee to be detailed, the period of detail and the reasons for the detail.
c) The Secretary of Finance through the BLGF Executive Director may temporarily relieve
2. In case of detail or temporary assignment from one LGU to another LGU, the or suspend Provincial, City and Municipal Treasurers and their Assistants 13, concurrently
request for such detail or temporary assignment shall be approved only upon the with the Civil Service Commission 14 and the Office of the Ombudsman 15, pending
concurrence in writing of the LCE of the LGU where the Local Treasurer or Assistant administrative investigation.
Local Treasurer sought to be detailed is permanently appointed or stationed. (DOF
Department Personnel Order No. 335-03, October 1, 2003) d) Other provisions applicable on the salaries of Local Treasurers and Assistant Local
Treasurers under preventive suspension:
3. Clearance and approval of the Civil Service Commission shall be required for details
or temporary assignment requiring a period exceeding one (1) year and involving
the performance of regular and recurring functions in the agency where the Local
11
Treasurer or Assistant Local Treasurer is to be detailed. (Sec. 216, Vol. I, GAAM) Section 51, Title I, Subtitle A, Book V, E.O. 292
12
Sec. 13, R.A. 3019 otherwise known as the Anti-Graft and Corrupt Practices Act
4. No detail or reassignment shall be made within three (3) months before any 13
DOF Order No. 305-2000, October 27, 2000, as amended by DOF Personnel Order no. 321-2000, November 17, 2000
election. (Sec. 5, Rule XVIII; Omnibus Rules Implementing Book V of E. O. No. 292 14
Section 29, Rule XIV, Omnibus Rules Implementing Book V of E.O. No. 292 and Other Pertinent Civil Service Laws
and Other Pertinent Civil Service Laws) 15
Section 24, R.A. 6770 otherwise known as the Ombudsman Act of 1989

1. When the administrative case against the officer or employee under preventive 4.3 A certified true copy of the President’s order of exoneration providing for
suspension is not finally decided by the disciplining authority within the period of 90 payment of salary during suspension.19
days after the date of suspension of the respondent who is not a presidential
appointee, the responded shall be automatically reinstated in the service: Provided, Section 14. Salaries of Local Treasurers and Assistant Local Treasurers during Attendance in
that when the delay in the disposition of the case is due to the fault, negligence or Administrative, Civil or Criminal Investigation. –Absence of a Local Treasurer or Assistant Local
petition of the respondent, the period of delay shall not be counted in computing Treasurer is considered service in regular course under the following circumstances:
the period of suspension herein provided.16
A. Witness in a criminal case. - When a Local Treasurer or Assistant Local Treasurer is
2. A local treasurer who is reinstated after having been illegally dismissed is summoned by the court or is required by lawful authority to render service as a witness in
considered as not having left his/her office and should be given comparable a criminal case, such service shall be deemed to be of service in the regular course of
compensation at the time of his reinstatement in an amount not exceeding five (5) employment and the Local Treasurer or Assistant Local Treasurer shall be entitled to his
years’ salary regardless of whether the period of illegal dismissal exceeds five (5) salary during the period of such service payable by the office to which he/she pertains,
years. Such Treasurer cannot be faulted for his inability to work or render any regardless of whether he has served for or against the prosecution in such criminal case.
service as a result of his illegal dismissal because this was not his/her own making or (Sec. 226 (a), Vol. I, GAAM)In case the hearing or trial is conducted outside the LGU
liking. If dismissal was due to bad faith or personal malice or superior officers, they where the Local Treasurer or Assistant Local Treasurer is stationed, he shall
(superior officers) will be held accountable for the Local Treasurer’s back wages. 17 automatically be on official travel and shall be entitled to per diem and transportation
expenses, subject to the usual accounting and auditing rules and regulations. The
3. The death of a respondent Treasurer terminates the administrative proceedings summons of the Court shall be considered sufficient supporting documentation in lieu of a
against him/her and entitled his/her heirs to all the benefits due him/her together Travel Order.
with his/her unpaid salaries from the date of his/her suspension to the date of
his/her death.18 B. Witness in his own behalf in a criminal or administrative proceeding. - The attendance of
a Local Treasurer or Assistant Local Treasurer in his own behalf, to secure his/her
4. Claims for salaries during preventive suspension shall be supported by the following exoneration from charges or matter alleged against him/her is attendance to his/her
documents: own benefit. If he/she is not under suspension, the time consumed in such attendance
shall be charged to his leave, if he/she has any. Upon exoneration, however, when the
4.1 A certified true copy of the order of exoneration or of the court’s order case in which he/she is the accused or the respondent is the direct result of an act
dismissing the criminal case against the employee or absolving him/her; or performed by him/her in connection with his official duties, his/her absence charged to
his/her leave may be readjusted and his/her attendance in court considered as service in
4.2 A certified true copy of the authority granted by the department head for the due course. But when the criminal charges filed are not the direct act performed by
payment of salary during suspension; or him/her in connection with his/her official duties, forced absences from duty resulting
from his/her arrest and required attendance in court may not be considered official.
He/She shall not in such case be entitled to salary.
16
Section 52, Book V(A), 1987 Adm. Code; Sec. 42, PD 3019)
17
Gabriel vs. Hon. Eufemio C. Domingo, G.R. No. 87420, September 17, 1990
18 19
4th Indorsement, CSC, March 17, 1956 Section 220, Volume I, Government Accounting and Auditing Manual (GAAM)

C. Witness in a civil case between two private parties, and in which the Government has no c) Application for leave of Provincial/City/Municipal Treasurer exceeding seven(7) days
interest. -A witness is not obliged to attend as such in a civil action before any court, shall be supported by a request for the designation of an Acting or OIC Treasurer from
judge, justice, or other officer out of the province in which he/she resides, unless the the LCE concerned. Likewise, the LCE concerned shall recommend the approval of said
distance be less that fifty (50) kilometers from his/her place of residence to the place of application for leave.
trial by the usual course of travel. Therefore, a Local Treasurer or Assistant Local Treasurer
cited to appear in a civil case between two private parties wherein the Government has no d) Application for leave of Assistant Provincial/City/Municipal Treasurer for a period
interest, in order to testify as to knowledge of fact obtained by him/her in his official exceeding fifteen (15) days shall be approved by the BLGF Regional Director.
capacity, shall not be entitled to salary for absence on account of such appearance if the Application for leave for a period of seven(7) days and below shall be approved by the
distance from his/her place of residence to the place of trial by the usual course of travel Provincial/City/Municipal Treasurer, a copy of which shall be furnished the BLGF
be more than fifty (50) kilometers. If the distance involved is less than fifty (50) kilometers, Regional Director for proper information.
and the Local Treasurer or Assistant Local Treasurer is cited as a witness in a civil case
involving private persons as litigants for knowledge or fact acquired by him/her in his/her e) Provincial/City/Municipal Treasurer and Assistant Treasurer shall be entitled to special
private capacity, his absence will be chargeable against him/her without prejudice to privilege leave (SPL) as mandated under existing laws (Sec. 21, Rule XV1, Omnibus Rules
his/her right to seek reimbursement from the party at whose instance he testified. if such Implementing Book V of E.O. No.
witness testifies on a case from knowledge or fact acquired by him/her in his/her official 292).Likewise,Provincial/City/Municipal TreasurerandAssistantTreasurer may avail of
capacity, or to produce official papers or documents, and the distance between his/her maternity or paternity leave of not more than seven (7) days which shall be non-
place of residence and the place of trial is less than fifty (50) kilometers, his/her cumulative and non-commutative, immediately before, during or after the childbirth or
appearance will be considered service in due course, but in such a case the province, city miscarriage of their legitimate spouse. (Sec. 20, Omnibus Rules Implementing Book V of
or municipality to which he/she pertains shall collect witness' fees for his/her appearance E.O. No. 292, as amended by CSC Memorandum Circular No. 41, s. 1998)
under the conditions prescribed by the Rules of Court. (Sec. 226, Vol. I, GAAM)
f) The special privilege leave to which the Provincial/City/Municipal Treasurer and
Section 15. Approval and Grant of Application for Leave of Absence of Local Treasurers and Assistant Provincial/City/Municipal Treasurer shall be entitled to are the following:
Assistant Local Treasurers. – The approval of application for leave of Provincial, City and
Municipal Treasurers and Assistant Provincial, City and Municipal Treasurers shall be as follows: 1. Funeral/Mourning Leave
a) All applications for leave of absence, i.e. vacation, sick, maternity/paternity, and special 2. Graduation Leave
privilege leave and terminal leave of Provincial/City/Municipal Treasurer and Assistant
Provincial/City/Municipal Treasurer, regardless of duration of period of absence, shall 3. Enrollment Leave
be filed and approved by the BLGF Regional Director, copies of which shall be furnished
to the BLGF Central Office. 4. Wedding/Anniversary Leave
b) Where the applicant intends to leave the country, the application for leave and the 5. Birthday Leave
issuance of travel authority shall be approved by the Department of Finance, regardless
of the duration. 6. Hospitalization Leave
7. Accident Leave

Implementing Book V of E.O. No. 292, as amended by CSC Memorandum Circular No.
8. Relocation Leave 41, s. 1998)
9. Government Transaction Leave k) A Provincial/City/Municipal Treasurer or an Assistant Provincial/City/Municipal

Treasurer may be allowed to monetize fifty percent (50%) or more of his/her
10. Calamity Leave accumulated vacation or sick leave credits for valid and justifiable reasons such as the
following:
g) A maximum of three (3) days within a calendar year or a combination of the special
leave privileges of their choice may be availed of by the Provincial/City/Municipal 1. Health, medical and hospital needs of the Provincial/City/Municipal Treasurer or
Treasurer and the Assistant Provincial/City/Municipal Treasurer. The SPL may be the Assistant Provincial/City/Municipal Treasurer or the immediate members of
availed of by the Provincial/City/Municipal Treasurer and the Assistant Treasurer when his/her family;
the occasion is personal to them or that of their immediate family members.
2. Financial aid or assistance brought about by force majeure events such as
h) WheneveraProvincial/City/MunicipalTreasureroranAssistantTreasurer retires, calamities, typhoons, fire, earthquakes and accidents;
voluntarily resigns, or is allowed to resign, or is separated from the service through no
fault of his own, he/she shall be entitled to the commutation of all accumulated 3. Educational needs of the Provincial/City/Municipal Treasurer or the Assistant
vacation leave and/or sick leave to his/her credit, exclusive of Saturdays, Sundays and Provincial/City/Municipal Treasurer or the immediate members of his/her family;
holidays, without limitation as to the number of days of vacation leave and sick leave
that he/she may accumulate provided his/her leave benefits are not covered by special 4. Payment for mortgages and loans entered into for the benefit of the
law. (Sec. 26, Rule XVI, Omnibus Rules Implementing Book V of E.O. No. 292, as Provincial/City/Municipal Treasurer or Assistant Provincial/City/Municipal
amended by CSC Memorandum Circular No. 41, s. 1998) Treasurer or the immediate members of his/her family; and
i) When a Provincial/City/Municipal Treasurer or an Assistant Provincial/City/Municipal 5. Extreme financial needs of the Provincial/City/Municipal Treasurer or Assistant
Treasurer whose leave credits have been commuted following his/her separation from Provincial/City/Municipal Treasurer or the immediate members of his/her family to
the service is re-employed in the Government before the expiration of the leave fulfill basic needs for food, shelter and clothing.
commuted, he/she shall no longer refund the money value of the unexpired portion of
his/her leave. Insofar as his/her leave credit is concerned, he/she shall start from a zero l) The monetization of fifty percent (50%) or more of the accumulated leave credits shall
balance in his/her new government office. (Sec.26, Rule XVI of Omnibus Rules be upon the favorable recommendation of the LCE and subject to availability of funds.
Implementing Book V of E, O. No. 292, as amended by CSC Memorandum Circular No. (Sec. 23, Omnibus Rules Implementing Book V of E.O. No. 292, as amended by CSC
41, s. 1998) Memorandum Circular No. 41, s. 1998).
j) A Provincial/City/Municipal Treasurer or an Assistant Provincial/City/Municipal m) A Provincial/City/Municipal Treasurer or an Assistant Provincial/City/Municipal

Treasurer who has accumulated at least fifteen (15) days’ vacation leave credits shall be Treasurer with ten (10) days or more vacation leave credits shall be required to go on
allowed to monetize a minimum of ten (10) days; provided, that at least five (5) days vacation leave whether continuous or intermittent for a minimum of five (5) working
are retained after monetization and, provided further, that a maximum of thirty (30) days annually. (Sec. 25, Omnibus Rules Implementing Book V of E.O. No. 292, as
days may be monetized in a given year. (Sec. 22, Rule XVI of Omnibus Rules amended by CSC Memorandum Circular No. 41, s. 1998)

concerning official matters relating to the accounts of the treasurer or otherwise arising
in the offices of the treasurer and the assessor. (Sec. 471(c), LGC)
Chapter 3. ROLES, DUTIES, AND RESPONSIBILITIES OF THE LOCAL TREASURER
j) In case of the absence of the Local Treasurer for more than seven (7) working days, the
Section 16. Powers and Duties of Local Treasurer and Assistant Treasurer. – The Local Treasurer Assistant Treasurer shall automatically perform the functions of the former and shall be
shall take charge of the Local Treasury Office and perform the following duties and functions: fully responsible therefor until the designation of an Acting or Officer-In-Charge (OIC) by
the DOF, through the BLGF.
a) Collect all local taxes, fees and charges directly or through their duly authorized
deputies (Sec. 170, LGC); k) Specific Functions:
b) Advise the Governor or Mayor, as the case may be, the “sanggunian”, and other local 1. Certify as to the Availability of Funds – No money shall be disbursed unless the
government and national officials concerned regarding disposition of local government local budget officer certifies to the existence of the appropriation that has been
funds, and on such other matters relative to public finance; legally made for the purpose, the local accountant has obligated said appropriation,
and the local treasurer certifies the availability of funds for the purpose 2021. It is the
c) Take custody of and exercise proper management of the funds of the LGU concerned; primary duty of the local treasurer to certify to the availability of funds prior to all
disbursements from the local treasury, in conjunction with the certification of the
d) Take charge of the disbursement of all local government funds and such other funds the local budget officer on the existence of an appropriation for the purpose and the
custody of which may be entrusted to him/her by law or other competent authority; certification of the local accountant on the obligation for the appropriation.
e) Inspect private commercial and industrial establishments within the jurisdiction of the 2. Implement Tax Collection and Enforcement Program – The Local treasurer is
local government unit concerned in relation to the implementation of tax ordinances, vested by law to collect and receive all monies accruing to their respective
pursuant to the provisions under Book II of the LGC; jurisdictions whether in the form of collectible taxes and other revenues or trust
funds pertaining to other branches or units of government.
f) Maintain and update the tax information system of the LGU;
3. Prepare and Submit Reports – The Local Treasurer shall prepare and submit daily
g) In the case of the Provincial Treasurer, exercise technical supervision over all treasury report of collections, with the supporting document. Likewise, the Local Treasurer
offices of component cities and municipalities; and shall accomplish and submit quarterly report of Statement of Receipts and
Expenditures (SRE), and other reports in forms prescribed by the BLGF/DOF.
h) Exercise such other powers and perform such other duties and functions as may be
prescribed by law or ordinance. 4. Certify RPT Delinquencies Remaining Uncollected – The provincial, city or
municipal treasurers or his/her deputy shall prepare a certified list of all real
(Sec 470, LGC) property tax delinquencies which remained uncollected or unpaid for at least one
(1) year in his/her jurisdiction, and a statement of the reason for such non-
i) The assistant treasurer shall assist the treasurer and perform such duties as the latter
may assign to him/her. He/She shall have authority to administer oaths concerning 20
Ibid, Sec. 344, LGC
notices and notifications to those delinquent in the payment of real property tax and 21
COA Circular No. 2006-002, January 31, 2006

collection or non-payment and shall submit the same to the S Municipal Accountant, shall issue a certified statement covering the actual income
5. anggunian concerned on or before the thirty-first (31st) of December of the year of the past year and the estimates of income of the current and ensuing fiscal years
immediately succeeding the year in which the delinquencies were incurred, with a from local sources, for the barangay concerned. Based on such certified statement,
request for assistance in the enforcement of the remedies for collection provided in the barangay treasurer shall submit, on or before the fifteenth (15 th) day of
the Local Government Code of 1991.(Sec. 269, LGC) September each year, to the punong barangay a statement covering the estimates
of income and expenditures for the past, current and ensuring fiscal years.(Art. 423
6. Examine the Books of Accounts and Pertinent Records of Businessmen– The (b), IRR, LGC)
provincial, city, municipal or barangay treasurer may by himself/herself or through
any of his/her deputies duly authorized in writing, examine the books, accounts, Upon receipt of the statement of income and expenditures from the barangay
and other pertinent records of any person, partnership, corporation, or association treasurer, the punong barangay shall prepare the barangay budget for the ensuing
subject local taxes, fees and charges in order to ascertain, asses, and collect the fiscal year in the manner and within the period prescribed in the Implementing
correct amount of the tax, fee, or charge. Such examination shall be made during barangay budget to the sangguniang barangay for enactment.(Art. (c), IRR, LGC)
regular business hours, only once for every tax period, and shall be certified to by
the examining official. Such certificate shall be made of record in the books of 9. Keep Full Sets of Secondary Standards for Use in the Testing of Weights and
accounts of the taxpayer examined. Measures – On the sealing of weights and measures, Municipal Treasurers shall
keep full sets of secondary standards in their offices for use in the testing of weights
In case the examination herein authorized is made by a duly authorized deputy of and measures. These secondary standards in their offices for use in the testing of
the local treasurer, the written authority of the deputy concerned shall specifically weights and measures. These secondary standards shall be compared with the
state the name, address, and business of the taxpayer whose books, accounts, and fundamental standards of the Department of Science and Technology (DOST) at
pertinent records are to examined, the date and place of such examination, and the least once a year. The sealing and licensing of weights and measures shall be the
procedure to be followed in conducting the same. duty of Municipal Treasurer and their deputies. In case of violation, fraudulent
practices and unlawful possession or use of instruments of weights and measures,
For the purpose, the records of the revenue district office of the Bureau of Internal shall settle an offense involving the commission of fraud before a case therefore is
Revenue shall be made available to the local treasurer, his deputy of duly filed in court, upon payment of a compromise penalty of not less than Two Hundred
authorized representative. (Sec. 171, LGC) Pesos (P200.00).
7. Submit Certified Statement Covering Income and Expenditures– The Local 10. Register in a Book All Branded and Counter Branded Animals – On cattle
Treasurer shall submit, on or before the fifteenth (15 th) day of July each year, to the registration, the Municipal Treasurer shall register in a book properly prepared and
LCE a certified statement covering the income and expenditures of the preceding kept for the purpose, all branded and counter branded animals presented for
fiscal year, the actual income and expenditures of the first two (2) quarters of the registry, and shall enter the name and residence of the owner, and the class, color,
current year and the estimated income and expenditures for the last two (2) sex, age, brand, knots of radiated hair and other marks of identification of the cattle
quarters of the current year. All statements of income and expenditure shall be registered. The original registry entry and the copy thereof issued as a certificate of
jointly certified by the Local Treasurer and the Local Accountant. ownership shall be signed by the owner and the Municipal Secretary. 22
8. Issue a Certified Statement Covering Actual Income – On or before the fifth (5 th)
day of September each year, the City or Municipal Treasurer, jointly with the City or 22
Section 517, Revised Administrative Code of the Philippines

Upon every transfer of large cattle, the Municipal Treasurer shall issue to the functions and perform such other duties and responsibilities as may be prescribed
purchaser of the animal a certificate of transfer showing the name and residence of by law or ordinance, as follows:
the owner/vendor, name and residence of the buyer, purchase price, identification
marks of the animal and the reference to the original certificate of ownership by 12.1 Remit of the Bureau of Internal Revenue (BIR); the Government Service
number and the name of municipality which issued the certificate. Insurance System (GSIS); Pag-ibig; Philhealth obligations and share of Metro
Manila Development Authority (MMDA) for LGUs in Metro Manila.
11. See to it that Payment of Taxes of a Business is not Avoided Through Simulation of
the Retirement thereof and Recommend to the Mayor for the Disapproval of the 12.2 Deputies of the National Government Alien Registration Fees.
Application for the Termination or Retirement of the Business – The Local
Treasurer shall see to it that the payment of taxes of a business is not avoided 12.3 Members of the following Local Committees and Boards:
through simulation of the termination or retirement thereof. For this purpose, the
Local Treasurer shall observe as follows: i. Local Finance Committee
10.1 Assign every application for the termination or retirement of a business to an ii. Local School Boards 24
inspector from the Local Treasury Office who shall proceed to the address on
record of the business to verify if it is no longer operating. If the inspector iii. Appraisal Committee (for purposes of expropriation and purchase of real
finds that the business is simply placed under a new name, manager and/or a property)
new owner, the Local Treasurer concerned shall recommend to the LCE for
the disapproval of the application for termination or retirement of the 12.4 Duties and functions under the omnibus Election Code25
business. Accordingly, the business shall continue to be liable for the payment
of all taxes, fees and charges imposed thereon under existing local tax
ordinances; and Section 17. The Local Treasurer's Role in Boards and Committees Created Pursuant to the LGC
and Other Laws. –
10.2 In the case of a new owner to whom the business was transferred by sale or
other form of conveyance, said new owner shall be liable to pay the tax or fee a) Local Finance Committee (LFC) -
for the transfer to him/her of the business if there is an existing ordinance
prescribing such transfer tax. 23 1. It is mandatory for every province, city, or municipality to create a Local Finance
Committee (LFC) which shall be composed of the following:
12. Attend Sessions of the Sanggunian – The Local Treasurer, when required and upon
prior approval of the local chief executive, shall attend the sessions of the 1.1. Local Treasurer
sanggunian.(Section 470(e), LGC)
1.2. Local Planning and Development Officer
13. Exercise Such Other Powers and Functions and Perform Such Other Duties and
Responsibilities – The Local Treasurer shall exercise such other powers and
24
23 Section 98 (a), R.A. 7160 otherwise known as the Local Government Code of 1991
Notes on Sec. 145, LGC, p. 120, Philippine Law on Local Government Taxation, Annotated, 2000 Edition,
25
Sofronio B. Ursal E.O. 144, 2 March 1987

1.3. Local Budget Officer
(Sec. 316, LGC).
2. The LFC shall exercise the following functions:
b) Local School Boards (LSB) -There shall be established in every province, city, or
2.1. Determine the income reasonably projected as collectible for the ensuing municipality a provincial, city, or municipal school board. The composition of the local
fiscal year; school boards shall be as follows:
2.2. Recommend the appropriate tax and other revenue measures or 1. The Provincial School Board shall be composed of the Governor as Chairperson and
borrowings which may be appropriate to support the budget; the Division Superintendent of Schools as Co-Chairperson; the Chairperson of the
Education Committee of the “sangguniang panlalawigan”, the Provincial Treasurer,
2.3. Recommend to the LCE concerned the level of the annual expenditures the representative of the “pederasyon ng mga sangguniang kabataan” in the
and the ceilings of spending for economic, social and general services “sangguniang panlalawigan”, the duly elected President of the Provincial
based on the approved local development plans; Federation of Parents-Teachers Associations, the duly elected representative of the
teachers' organizations in the province, and the duly elected representative of the
2.4. Recommend to the LCE concerned the proper allocation of expenditures non-academic personnel of public schools in the province, as members;
for each development activity between current operating expenditures
and capital outlays; 2. The City School Board shall be composed of the City Mayor as Chairperson and the
City Superintendent of Schools as Co-Chairperson; the Chairperson of the education
2.5. Recommend to the LCE concerned the amount to be allocated for capital committee of the “sangguniang panlungsod”, the City Treasurer, the representative
outlay under each development activity or infrastructure project; of the “pederasyon ng mga sangguniang kabataan” in the “sangguniang
panlungsod”, the duly elected President of the City Federation of Parents-Teachers
2.6. Assist the “sangguniang panlalawigan” in the review and evaluation of Associations, the duly elected representative of the teachers' organizations in the
budget of component cities and municipalities in the case of provincial city, and the duly elected representative of the non-academic personnel of public
finance committee, the barangay budgets in the case of city or municipal schools in the city, as members; and
finance committee, and recommend the appropriate action thereon;
3. The Municipal School Board shall be composed of the Municipal Mayor as
2.7. Assist the “sanggunian” concerned in the analysis and review of annual Chairperson and the District Supervisor of Schools as Co-Chairperson; the
regular and supplemental budgets of the respective LGU to determine Chairperson of the Education Committee of the “sangguniang bayan”, the
compliance with statutory and administrative requirements; and Municipal Treasurer, the representative of the “pederasyon ng mga sangguniang
kabataan” in the “sangguniang bayan”, the duly elected President of the Municipal
2.8. Conduct semi-annual review and general examination of cost and Federation of Parents-Teachers Associations, the duly elected representative of the
accomplishments against the performance standards applied in teachers' organizations in the municipality, and the duly elected representative of
undertaking development projects.A copy of this report shall be the non-academic personnel of public schools in the municipality, as members.
furnished the LCE and the “sanggunian” concerned, and shall be posted (Sec. 98-a and b, LGC)
in conspicuous and publicly accessible places in the Provinces, Cities,
Municipalities and “barangays”.

The performance of the duties and responsibilities of the abovementioned officials c) Bids and Awards Committee (BAC) -
in their respective local school boards shall not be delegated.(Sec. 98, LGC)
1. The Bids and Awards Committee (BAC)of the Province, City or Municipality
4. The Provincial, City and Municipal School Boards shall have the following functions; decides the winning bids and questions of awards on procurement of property
and services.
4.1 Determine, in accordance with the criteria set by the Department of
Education, Culture and Sports (now Department of Education or DepEd), the 2. Under Republic Act No. 9184, membership of the local treasurer in the BAC is
annual supplementary budgetary needs for the operation and maintenance not mandatory. The BAC shall be composed of one (1) representative each from
of public schools within the province, city, or municipality, as the case may the regular offices under the Office of the Local Chief Executive such as but not
be, and the supplementary local cost of meeting such needs, which shall be limited to the following: Offices of the Administrator, the Budget Officer, the
reflected in the form of an annual school board budget corresponding to its Legal Officer, the Engineering Office, and the General Services Office. The end
share of the proceeds of the special levy on real property constituting the user office shall always be represented in the BAC. The BAC members shall be at
Special Education Fund (SEF) and such other sources of revenue as the LGC , least five (5) but not more than seven (7) and who shall be personnel occupying
and other laws and ordinances may provide; plantilla positions of the LGU. The Local Chief Executive shall designate the
members of the BAC who shall elect among themselves the Chairman and Vice-
4.2 Authorize the Provincial, City or Municipal Treasurer, as the case may be, to Chairman. In no case shall the LCE and /or appointing authority be the
disburse funds from the SEF pursuant to the budget prepared and in Chairman or member of the BAC.(Sec. 11.2.2, IRR, R.A. No. 918426, Rule V)
accordance with existing rules and regulations;
3. The BAC shall have the following functions:
4.3 Serve as an advisory committee to the “sanggunian” concerned on
educational matters such as, but not limited to, the necessity and uses of 3.1 Advertise and/or post the invitations to bid;
local appropriations for educational purposes; and
3.2 Conduct pre-procurement and pre-bid conferences;
4.4 Recommend changes in the names of public schools within the territorial
jurisdiction of the local government unit for enactment by the “sanggunian” 3.3 Determine the eligibility of prospective bidders;
concerned.
3.4 Receive bids and conduct the evaluation of bids;
(Sec. 99, LGC).
3.5 Undertake post-qualification proceedings;
4.5 The Co-Chairperson and Members of the Provincial, City or Municipal School
Board shall perform their duties as such without compensation or 3.6 Resolve motions for reconsideration; and
remuneration. Members thereof who are not government officials or
employees shall be entitled to necessary travelling expenses and allowances 3.7 Recommend award of contracts to the LCE or authorized representative.
chargeable against the funds of the local school board concerned, subject to
existing accounting and auditing rules and regulations. (Sec. 101, LGC)
26
Amended Section 364 of the LGC (Committee and Awards)

4. The BAC shall also prepare the procurement monitoring report covering all
procurement activities specified in the Annual Procurement Plan (APP), 3. Officials designated in acting capacity to the offices/positions enumerated by
whether ongoing and completed, costing Fifty Million Pesos (₱50,000,000.00) law as chairman, vice chairman or member of the Board may be appointed
and above for goods and infrastructure projects, and Five Million Pesos thereto but not those designated in an Officer-in-Charge capacity. (Sect. 6,
(₱5,000,000.00) and above for consulting services. The report shall cover all COMELEC Resolution No. 10050, dated February 3, 2016)
activities from pre-procurement conference to the issuance of notice of award
and approval of contract. The report shall be approved by the head of the b) Custodianship of Ballot Boxes and Election Paraphernalia– The Provincial, City and
procuring entity, and submitted to the Government Procurement Policy Board Municipal Treasurer shall have custody of ballot boxes and such election
(GPPB) in printed and electronic format within ten (10) working days after the paraphernalia, supplies and materials as are entrusted to him/her under the law or
end of each semester. The GPPB is an inter-agency board created under the rules of the COMELEC and shall be responsible for their preservation and storage,
Government Procurement Reform Act or R. A. No. 9184, chaired by the and for any loss, destruction, impairment or damage of any election equipment
Secretary of the Department of Budget and Management to formulate and materials or document in their possession furnished under the Omnibus Election
amend the IRR and the corresponding standard forms for Procurement, ensure Code. (Sec. 162, Art. XIII, Omnibus Election Code)
the regular conduct by government entities of procurement training,
preparation of procurement operations manual for all government agencies, c) Preparation of Emergency Ballots– In the event of failure to receive the official
and conduct annual review of the effectiveness of the Procurement Law and ballots on time, or where there are no sufficient ballots for all registered voters or
recommend amendments thereto as necessary. when they are destroyed and it is impossible to provide other ballots, the City or
Municipal Treasurer shall provide other ballots which shall be similar to the official
Section 18. Treasurer's Role in National and Local Elections pursuant to the Omnibus Election ones and which shall be uniform within each polling place. The City/Municipal
Code27. – Treasurer shall immediately report such action to the COMELEC.
a) Membership in the Municipal Board of Canvassers - d) Record of Quantity and Serial Numbers of Official Ballots and Election Returns. -
The Provincial, City or Municipal Treasurer shall respectively keep a record of the
1. Municipal board of canvassers. - the municipal board of canvassers shall be quantity and serial numbers of official ballots and election returns furnished the
composed of the election registrar or a representative of the Commission, as various provinces, cities, municipalities and polling places, as the case may be. (Sec.
chairman, the municipal treasurer, and the district supervisor or in his absence 186, Omnibus Election Code, Art. XVI)
any public school principal in the municipality and one representative from
each of the ruling party and the dominant opposition political party entitled to e) Verification and Distribution of Official Ballots and Election Returns in accordance
be represented, as members.(Sec. 221-d, Omnibus Election Code) with the COMELEC resolutions -
2. The chairperson and the members of the Board of Canvassers shall not be f) Certification of Serial Number of Election Returns - The Provincial, City or Municipal
related within the fourth civil degree of consanguinity or affinity to any of the Treasurer shall issue a certification as to the serial number of the election return
candidates whose votes will be canvassed by said board, or to any member of assigned to a voting precinct in the case of an election return with a separately
the same board.(Secs. 222, Omnibus Election Code, Art. XIX) printed serial number or which bears a different serial number from that assigned to
the particular polling place. Said election return shall not be canvassed, unless the
27
BATAS PAMBANSA BILANG 881, December 3, 1985

Commission shall order in writing for its canvassing, stating the reason for the with the keys kept as follows: one with the chairman, the other with the
variance in serial number.(Sec. 212, Omnibus Election Code, Art. XVIII) representative of the ruling party, and the other with the representative of the
dominant opposition party.(Sec. 230, Omnibus Election Code, Art. XIX)
j) Delivery, Preservation and Disposition of Ballot Boxes -
m) Canvass by the Board of Canvassers - The Board of Canvassers shall meet not later
1. The ballot box, all supplies of the BEI and all pertinent papers and documents than six o'clock in the afternoon of Election Day at the place designated by the
shall immediately be delivered by the BEI and the watchers to the City or COMELEC to receive the election returns and to immediately canvass those
Municipal Treasurer who shall keep his office open all night on the day of the received. It shall meet continuously from day to day until the canvass is completed.
election if necessary for the purpose, and shall provide the necessary facilities for Subject to reasonable exceptions, the Board of Canvassers must complete their
said delivery at the expense of the city or municipality. The City or Municipal canvass within 36 hours in municipalities, 48 hours in cities and 72 hours in
Treasurer shall on the day after the election require the members of the BEI who provinces. (Sec. 231, Art. XIX, Omnibus Election Code). Violation hereof shall be an
failed to send the objects herein referred to deliver the same to him/her election offense punishable with imprisonment of not less than one year but not
immediately and acknowledge receipt thereof in detail.(Sec. 217, Omnibus more than six years and shall not be subject to probation. In addition, the guilty
Election Code, Art. XVIII) party shall suffer disqualification to hold public office and deprivation of the right
of suffrage.(Sec. 264, Omnibus Election Code, Art. XIX)
2. The City and Municipal Treasurer shall keep the ballot boxes under their
responsibility for three months and stored unopened in a secured place, unless
the COMELEC orders otherwise or shall demand them sooner or shall order their Chapter 4. BONDING OF LOCAL TREASURERS AND OTHER LGU ACCOUNTABLE OFFICERS
preservation for a longer time in connection with any pending contest or
investigation. Upon the lapse of three months and if there is no order to the Section 19. Legal Basis for the Bonding of Local Treasurers and Other LGU Accountable
contrary, the COMELEC may authorize the City and Municipal Treasurer in the Officers. –Treasury Circular No. 02-2009 dated August 6, 2009 revised Treasury Order Nos. 01-95
presence of its representative to open the boxes and burn their contents, except and 01-99 pertaining to regulations promulgated for the effective bonding of accountable
the copy of the minutes of the voting and the election returns deposited therein officers pursuant to the provisions of the Public Bonding Law (PBL).
which they shall keep.(Sec. 219, Omnibus Election Code, Art. XVIII)
Section 20. Guidelines on Bonding of Local Treasurers and Accountable Officers. –
k) Delivery and Transmittal of Election Returns - For the City and Municipal Board of
Canvassers, the copy of the election returns of a polling place intended for the City or a) Bonding of Local Treasurers and Accountable Officers -
Municipal Board of Canvassers, duly placed inside a sealed envelope signed and
affixed with the imprint of the thumb of the right hand of all members of the BEI, 1. Every officer of the local government unit whose duties permit or require the
shall be personally delivered by the members of the BE1 to the City or Municipal possession or custody of local funds shall be properly bonded, and such officer shall
Board of Canvassers under the proper receipt to be signed by all the members be accountable and responsible for said funds and for the safekeeping thereof in
thereof.(Sec. 229, Omnibus Election Code, Art. XIX) conformity with the provisions of law.(Sec. 305 (f), LGC)
l) Safekeeping of Transmitted Election Returns - The Board of Canvassers shall keep 2. Every officer, agent and employees of the Government of the Philippines or of the
the ballot boxes containing the election returns in a safe and secured room before companies or corporations of which the majority of the stock is held by the National
and after the canvass. The door to the room must be padlocked by three (3) locks Government, regardless of the status of their appointment shall, whenever the

nature of the duties performed by such officer, agent or employee permits or
requires the possession, possession, custody or control of funds or properties for 2. The Request and Application Forms, together with required supporting
which he/she is accountable, be deemed a bondable officer and shall be bonded or documents, shall be filed with the CTOO II assigned at the BTr DOs/POs having
bondable and his/her fidelity insured.(Sec. 4.1 of the Treasury Circular No. 02-2009 jurisdiction over the agency. The CTOO II shall verify, ascertain and determine
dated August 6, 2009) the following:
3. All Heads of Agencies shall upon appointment or lawful accession by any 1.1 If GF Nos. 57A and 58A have been properly accomplished and in order;
accountable public officer to a bondable position or office pertaining to their
respective jurisdiction or separation therefrom of any such public officer, notify in 1.2 If the required supporting documents are complete and in order;
writing the Treasurer of the Philippines (TOP) through the Bureau of the Treasury
(BTr) District/Provincial Office (DO/PO) having jurisdiction over the 1.3 If the name of the applicant appears on the list of bondable public
agency/office/GOCC/LGU/SUC within 5 days from such appointment, lawful officers submitted by the agency;
succession or separation and submit the required application for bond or
cancellation thereof, as applicable.(Local Treasury Circular No. 02-2009, Sec. 6.2) 1.4 If the applicant is a safe and conservative risk in accordance with Section
320 of the PBL.
4. The duty to notify the TOP shall be given preferential attention of such heads of
departments, bureaus and offices of the National Government including GOCCs, 3. In case of non-compliance with the above Section, the CTOO II shall return to
SUCs, heads of LGUs, Provincial and Local Treasurers and other officials concerned. the applicant the Request and Application Forms and its supporting documents
(Local Treasury Circular No. 02-2009, Sec. 6.3) for necessary corrections and/or compliance.
b) Procedure for Bonding Application:(Treasury Circular No. 02-2009 dated. Aug. 6, 2009) 4. In case the applicant is determined to be an unsafe risk, The CTOO II shall
- transmit the bond application to the RD with his recommendation for
disapproval stating the basis therefor.
1. The applicant shall accomplish in duplicate General Form (GF) Nos. 57A
(Request Form) and 58A (Application Form), copies of which can be secured 5. When the recommendation of the CTOO II is affirmed by the RD, the latter shall
from BTr Dos/Pos. GF No. 58A shall be subscribed and sworn to before any communicate the disapproval in writing to the Head of Agency of the applicant
officer authorized to administer oath, attaching therewith two (2) passport size public officer stating therein the factual and legal basis for such disapproval.
identification pictures taken within the last three (3) months prior to the date of
application. The Request and Application Forms shall be accompanied by the 6. The CTOO II shall assess the applicable bond premium and issue the ATAP when
following: GF 57A and 58A and supporting documents are found to be complete and in
order.
1.1. Latest Sworn Statement of Assets, Liabilities and Networth (SALN).
7. The applicant shall upon receipt of the ATAP, proceed to the nearest AGDB
1.2. List of bondable public officers certified by the agency officer in charge of where the TOP has a deposit account for payment of the assessed bond
Administrative and/or Finance Department, Service, Division or unit premium shall be for the account of the TOP. The CTOO II or his representative
(Form Annex D of TC No. 02-2009). shall not, for any reason, receive payment of the bond premium.

8. Violation hereof shall subject the CTOO II or his representative to appropriate
sanctions as for grave misconduct defined and penalized under the Revised SCHEDULE OF PREMIUM RATES as provided under Treasury Circular No. 02-2009, dated
Uniform Rules in Administrative Cases in the Civil Service in relation to Rule XIV, August 6, 2009:
Omnibus Rule of Implementing Book V of EO 292 s. 1987.
I. CASH ACCOUNTABILITY
9. The applicant accountable public officer shall submit and present to the
concerned CTOO II a copy of the validated deposit slip and ATAP as proof of MINIMUM CASH MAXIMUM CASH AMOUNT OF BOND BOND PREMIUM
payment of the bond premium. ACCOUNTABILITY ACCOUNTABILITY
5,000.00 9,000.00 75% OF THEIR TOTAL BOND PREMIUM
10. The CTOO II shall transmit all bond application to RD for approval of bond CASH SHALL NOT BE
application only upon proof of compliance under the abovementioned Section. ACCOUNTABILITY LESS THAN Php
150.00
Section 21. Schedule of Cash Accountability and the Corresponding Bonds. – 9,001.00 12,000.00 9,000.00 150.00
12,001.00 15,000.00 11,250.00 168.75
1) Amount of Bond - 15,001.00 18,000.00 13,500.00 202.50
18,001.00 21,000.00 16,750.00 251.25
The amount of bond shall be based on the total accountability (cash, property and accountable 21,001.00 25,000.00 18,900.00 283.50
forms) of the accountable public officer as determined by the Head of Agency. Provided, the 25,001.00 30,000.00 22,500.00 337.50
individual maximum accountability of each accountable public officer shall not exceed One 30,001.00 35,000.00 26,250.00 393.75
Hundred Million Pesos (P 100M). However, the Head of the Agency may assign to other public 35,001.00 40,000.00 30,000.00 450.00
officers the excess accountability for which separate Fidelity Bond shall be secured.(Sec. 5.1, 40,001.00 50,000.00 37,500.00 562.50
Treasury Circular No. 02-2009) 50,001.00 60,000.00 45,000.00 675.00
60,001.00 80,000.00 60,000.00 900.00
2) Authority to Fix Schedule of Premium - 80,001.00 100,000.00 75,000.00 1,125.00
100,001.00 250,000.00 100,000.00 1,500.00
The Treasurer of the Philippines with the approval of the Secretary of Finance shall fix and, from 250,001.00 500,000.00 225,000.00 3,375.00
time to time, review the uniform rate of the bond premium chargeable for insurance under the 500,001.00 750,000.00 350,250.00 5,253.75
Public Bonding Law or PBL. (Sec. 5.2, Treasury Circular No. 02-2009) 750,001.00 1,000,000.00 500,000.00 7,500.00
1,000,001.00 2,500,000.00 750,000.00 11,250.00
3) Rate of Premium - 2,500,001.00 5,000,000.00 1,500,000.00 22,500.00
5,000,001.00 25,000,000.00 3,500,000.00 52,500.00
The rate of premium of the Fidelity Bond is equal to 1.5% of the amount of bond but shall not be 25,000,001.00 75,000,000.00 4,000,000.00 60,000.00
less that P 150.00. The Revised Schedule of Premium Rates (pls. See the table below) shall form 75,000,001.00 100,000,000.00 5,000,000.00 75,000.00
an integral part of Treasury Circular 02-2009 until amended or revised.(Sec. 5.3, Treasury
Circular No. 02-2009)

II. PROPERTY ACCOUNTABILITY (7.2 – 7.2.3, Treasury Circular No. 02-2009 dated August 6, 2009)
1. Government Securities 30% of their total value X 1.5% = Premium Section 23. Increase in the Amount of Accountability. –
2. Equipment 30% of their total value X 1.5% = Premium
3. Supplies and Materials 30% of their total value X 1.5% = Premium a) Any increase in the amount of accountability will have a corresponding increase in the
premium of the bond.
III. FOR ACCOUNTABLE FORMS
b) The applicant shall accomplish and submit GF 57A to the concerned DO/PO together
a. Internal Revenue Stamp with the following:
b. Documentary Stamp
c. Customs Documentary Stamp 1. Special Order increasing the amount of accountability; and
d. Cash Tickets
10% of their total 2. List of bonded public officers certified by the agency official in charge of:
e. Postage and other Stamp Stocks value rounded off to X 1.5% = Premium
f. Cattle Registration Certificates Administrative and/or Finance Department, Service, Division or Unit.
the nearest hundred
g. Marriage Certificates
h. Auto Driver Certificates c) The amount of bond premium shall be computed based on the increased amount of
i. Motor Vehicle License bond. The bond shall take effect upon the time of payment of premium on the new
bond application.
j. Other Accountable Forms having face
value
d) The Chief Treasury Operations Officer II (CTOO II) of the BTr concerned shall conceal the
previously assigned risk number to the applicant and issue a new risk number to the
Section 22. Renewal. – The Fidelity Bond of an accountable officer shall be renewed before the
new bond application.
expiration of the bond. The application for renewal of bond shall be accomplished by using
General Form 57A and accompanied by the following:
(7.3 Treasury Circular No. 02-2009 dated August 6, 2009)
a) List of bonded public officers subject for renewal certified by the agency official in
Section 24. Accountable Officers Considered Unsafe Risks. –The concerned CTOO II shall
charge of Administrative and/or Finance department, service, division or unit; Agency
evaluate the bond application to determine if the applicant is a safe and conservative risk in
certification that the bond applicant has no pending administrative and/or criminal case
accordance with Sec. 320 of the PBL. When the CTOO II have basis to prove that the applicant
(Annex E). For a bond applicant with pending administrative and/or criminal case, copies
public officer is an unsafe risk owing to character, association or habits, the following procedures
or pertinent pleadings, orders and resolutions filed or issued by the disputing parties
shall be followed: (Treasury Circular No. 02-2009 dated August 6, 2009)
prosecutor or investigatory offices and judicial bodies shall be attached to the bond
application;
a) The CTOO II shall transmit the bond application to the RD with his recommendation for
disapproval stating the basis therefor. When the recommendation of the CTOO II is
b) Copy of the latest BTr approved bond or copy of the Confirmation Letter; and
affirmed by the RD, the latter shall communicate the disapproval in writing to the Head
of Agency of the applicant public officer stating therein the factual and legal basis for
c) Latest Sworn SALN.
such disapproval.

Section 27. The Fidelity Fund. –
b) The disapproval/decision of the RD maybe appealed by the concerned Head of Agency
by filing a letter of appeal with the TOP within 15 days from the receipt of such a) All bond premium collected by the Bureau of the Treasury shall constitute the Fidelity
disapproval/decision. The letter of appeal shall state clearly and distinctively the Fund. The Fidelity Fund shall answer for defalcations, shortages and unrelieved
grounds and arguments of the appeal. A copy of the assailed written action/decision and accountability after all possible means of recovery of the amount from the accountable
disapproved bond application and its supporting documents shall be attached to the official or employee have been exhausted or his/her insolvency is declared by a
letter of appeal. The letter of appeal shall likewise be accompanied by a postal money competent court. The Fidelity Fund shall be available for the payment of court fees
order or MDS check in the amount of ₱500.00 as appeal fee payable to the TOP. incident to civil proceedings to recover the sum lost.
c) Within 5 days from receipt of the letter of appeal and the appeal fee, the TOP shall b) The Fidelity Fund shall not be used for the following:
require the RD to elevate the entire records relating the disapproved bond application.
The TOP shall have 15 days from receipt of the records from the RD to resolve the 1. To replace fines imposed on bonded officials/employees as a result of criminal
appeal. conviction for violation of the Revised Penal Code or any penal law;
d) The decision of the TOP shall be final, executory and not appealable. 2. To answer the liability of a bonded official/employee convicted of estafa through
falsification of public documents in his/her capacity as private individual, and
(7.1.8, Treasury Circular No. 02-2009 dated August 6, 2009)
3. To refund the accountability of a bonded official/employee found short in
Section 25. Cancellation of Bond. – accountability but not removed or relieved of the duties.(Sec. 8.0, Bureau of the
Treasury Order No. 01-95)
The Head of Agency or authorized representative shall immediately submit a written request for
bond cancellation to the concerned BTr DO/PO CTOO II involving accountable public officers who Section 28. Extent of Liability. –
are no longer accountable by reason of retirement, separation from the service, promotion,
transfer, suspension from office or for any other cause rendering them not bondable to their a) Primary Liability -
present position. The Head of Agency or authorized representative requesting for cancellation of
the bond shall accomplish GF Nos. 57A, items 10-16. (7.4Treasury Circular no. 02-2009 dated The head of any Government agency at all levels, whether national, corporate or local is
August 6, 2009) primarily responsible and accountable for all government funds and property pertaining to
his agency.(Sec. 6.1, Treasury Circular No. 02-2009)
Section 26. Effect of Cancellation. –
The cancellation of the bond for any cause allowed in the Treasury Circular No. 02-2009 before b) Effect of Failure to Notify -
expiration date, has the effect of limiting the liability of the Fidelity Fund to the transactions
within the period covered up to the time of its cancellation. The bond premium paid for the Failure on the part of the Head of Agency to make the required notification, of appointment,
accountable public officer whose bond is cancelled shall not be transferrable and not refundable. lawful succession or separation by any accountable officer to a bondable position, in writing
(4.12, Treasury Circular No. 02-2009) to the Treasurer of the Philippines through the concerned District/Provincial Office (DO/PO)
shall render them primarily liable to any such loss or damage to public funds or properties

their respective agency, province, city or municipality, barangay as the case maybe, may
incur on account on such failure.(Sec. 6.4,Treasury Circular No. 02-2009) c) Fidelity Fund; When Liable – When no relief of accountability is granted by COA, the
agency concerned may file claim for reimbursement from the Fidelity Fund to the extent
of the approved bond covered or amount of loss whichever is lower.
Section 29. Validity of Fidelity Bonds. –
d) Claims – Any and all claims against the Fidelity Fund shall be filed as a money claim with
a) An accountable public officer shall be considered bonded/insured with the Fidelity Fund COA, with copy to BTr together with the evidence relating thereto. Claims approved by
upon payment of the bond premium. The Fidelity Bond shall be valid and effective at the the COA shall constitute a legal claim against the Fidelity Fund.
time of payment and receipt of bond premium by the Authorized Government
Depository Bank (AGDB). The accountable public officer shall submit to the BTr DO/PO a e) Requirements for Payment of Adjudicated Claim – The agency shall file a claim for
copy of the AGDB validated deposit slip and Authority to Accept Payment (ATAP) as payment from the Fidelity Fund with the BTr, attaching the favorable findings of COA.
proof of payment of bond premium, after which the confirmation letter shall be issued. The BTr shall process the claim in accordance with existing budgeting, accounting and
(4.9, Treasury Circular No. 02-2009, dated August 6, 2009) auditing rules and regulations.
b) An approved Fidelity Bond shall be non-transferable and personal to the accountable 1. In case of defalcation, shortages and unrelieved losses in the account of bonded
public officer and shall remain valid and effective for 1 year from the time of payment public officer, the claim shall be supported by the following documents:
and receipt of bond premium. The Fidelity Bond shall be subject to renewal yearly
before the expiration of the present bond coverage while the accountable public officer 1.1 Agency and COA findings and recommendation on the defalcation,
is holding such position for which he was bonded. Failure to renew shall consider such shortages and unrelieved accountability;
bond as automatically cancelled and shall have no legal effect.(Treasury Circular No. 02-
2009, Sec. 4.10) 1.2 Latest Statement of Assets and Liabilities of the bonded
official/Employee;
Section 30. Adjudication and Payment of Claims against the Fidelity Fund. –(8.0 – 8.5.3,
Treasury Circular No. 02-2009 dated August 6, 2009) 1.3 Proof of current and subsisting bond and payment of bond premium; and
a) Application for Relief from Accountability – When loss of public funds or property 1.4 Other document/s which may be required by the BTr.
occurs while they are in transit or the loss is caused by fire, theft, or other casualty or
force majeure, the public officer accountable therefore or having possession, custody or 2. In case of proven shortages and defalcation, the public officer responsible
control thereof shall immediately notify the Commission on Audit or the agency auditor thereto should be removed or relieved of his duties without prejudice to civil,
concerned, and within thirty (30) days or such longer period as the Commission or criminal or administrative cases to be instilled.
auditor may in the particular case allow, shall present his application for relief with the
available supporting evidence. 3. Only approved claims shall be paid from the Fidelity Fund.
b) Effect of Relief from Accountability by COA – The relief from accountability of the f) Claims
accountable public officer granted by the COA shall relieve the agency from
responsibility for the loss or damage to public funds or property.

Any and all claims against the Fidelity Fund shall be filed as money claim with COA, with
copy to BTr together with the evidence relating thereto. Claims approved by the COA 5. Conduct training programs, seminars, workshops and other allied activities for the
shall constitute a legal claim against the Fidelity Fund. (8.4, Treasury Circular No. 02- improvement of the administrative skills in the local treasury offices
2009)
c) Technical Supervision
g) Penal Clause
1. Supervise and coordinate the conduct of Local Treasury and Assessment
Unjustified failure of an accountable public officer to comply with the requirements to Operations of Provinces, Cities and Municipalities within the region for the proper
apply the Fidelity Bond pursuant to the Treasury Circular No. 02-2009 and the Public implementation of laws, decrees, rules, regulations and administrative issuances of
Bonding Law (PBL) shall subject the responsible official/employee to applicable criminal, the DOF;
and/or administrative liability under the Revised Penal Code and PD 1445.
2. Coordinate the plans, programs and activities of local treasury and assessment
offices in the conduct of tax collection drives and tax information and education
Chapter 5. ADMINISTRATIVE AND TECHNICAL SUPERVISION BY THE BUREAU OF LOCAL campaigns;
GOVERNMENT FINANCE (BLGF)
3. Conduct regional training programs, seminars, workshops and other allied
Section 31. Administrative and Technical Supervision.– activities for the improvement of the technical skills in the local treasury offices;
a) The Bureau of Local Government Finance (BLGF) shall exercise administrative and 4. Monitor and determine the efficiency and effectiveness of the internal control
technical supervision and coordination over the treasury and assessment operations of system of the office of the Provincial/City/Municipal Treasurer;
local governments (Sec. 43 (b), E.O. No. 127). It shall provide consultative services and
technical assistance to local treasurers in the implementation of programs, policies and 5. Monitor the performance of revenue generation in RPT, Business Tax and non-tax
regulations on local fiscal matters such as local taxation, local revenue mobilization, and revenues;
real property assessment as well as administrative matters on the recruitment, selection
and appointment of Local Treasurers and Assistant Local Treasurers. 6. Conduct revenue and treasury operations evaluation to determine the compliance
by Local Treasurers with applicable laws, rules and regulations;
b) Administrative Supervision-
7. Monitor the implementation by LGUs of national and local tax ordinances and tax
1. Act on Personnel movement of the local treasurers and assistant treasurersi.e. measures;
promotion, designation, detail, secondment, transfer, retirement.
8. Review, evaluate, and monitor the timely and accurate submission of LGU financial
2. Act on leave of absence filed and fiscal reports for the purpose of target-setting and policy formulation.
3. Issuance of Travel Authority (Official or Personal) Section 32. Conduct of Local Treasury Operations Evaluation.–The conduct of the Local
Treasury Operations evaluation is governed by the enhanced Manual for the Evaluation of
4. Disciplinary action –act on complaints, investigate, file a formal charge Local Treasury Operations (MELTO) to provide a more systematic and uniform set of

evaluation procedures that are supported and justified by existing laws, rules and regulation s.
MELTO is a basic reference of the BLGF and its Regional Offices and the Provinces in the
conduct of the evaluation of treasury operations of local governments within their respective
jurisdictions. The BLGF Central Office shall conduct local treasury operations evaluation within
Metro Manila.In the case of the Regional Offices,evaluation shall be conducted within their
respective jurisdiction and may be undertaken in coordination with the Office of the Provincial
Treasurer.
FORMS
AND
ANNEXES

Annexes
vi. Clearance from money and property accountability from previous office
Annex 1: Minimum Documentary Requirement for Specific Expense Item
vii. Certificate of last salary received from former office
I. PERSONNEL SERVICES (PS)
viii. Approval of authority to transfer of employee
1) Salaries
ix. Certificate of last day of service from former office
a) First salary under an Original Appointment (Sec. 197, GAAM. Vol. I)
c) Salary Differentials under promotional appointment (Sec. 119, GAAM, Vol. I)
i. Certified True Copy of Appointment duly approved by the appointing
authority i. Approved Appointment/Notice of Salary Adjustments
ii. Certified true copy of Oath of Office ii. Evidence of Service Rendered (Certificate of Service/Daily Time Record)
iii. Statement of Assets and Liabilities iii. Certificate/Notice of Assumption to position Salaries/Wages of Temporary,
Casual or Emergency Employees (CAO Cir. 81-155, Feb. 23, 1981)
iv. Evidence of Service Rendered (Certificate of Service/Daily Time Record)
a. Authority or basis of employment
v. Certificate/Notice of Assumption to Office
b. Evidence of Service Rendered/Daily Time Record
vi. Evidence or Certificate showing compliance with conditions set forth in the
approval of the appointment, if any d) Salaries of Persons Employed on Contract Basis (COA Cir. 81-155, Feb. 23, 1981)
b) Salary under an Appointment by Transfer (Sec. 200, GAAM, Vol. 1) i. Contract of services duly noted by DBM and CSC
i. Certified True Copy of Appointment duly approved by the Appointing ii. Evidence of Service rendered/Daily Time Record
Authority
e) Salary upon Termination of Service
ii. Certified copy of oath of office
i. Employee's Letter of Resignation and acceptance of Resignation
iii. Statement of Assets and Liabilities
ii. Certificate of Clearance from money and property accountability
iv. Evidence of Service Rendered/Daily Time Record
iii. Certificate of clearance from GSIS
v. Certificate/Notice of Assumption to Office

f) Salary Due Heirs of Deceased Employees iv. Statement showing the balance of leave standing to the credit of the
employee
i. Death Certificate or Affidavit of attending physician
b) Entitlement of Leave Privileges
ii. If married, marriage certificate or in its absence an affidavit of surviving
spouse supported by affidavits of two (2) disinterested persons having As a general rule all officers and employees who have rendered at least six (6)
knowledge of the marriage relationship months of continuous service, faithful and satisfactorily service, and whose office
hours as so fixed that they are on duty the number of hours required by law, are
iii. Designation of next of kin entitled to 15 days’ vacation and 15 days sick leave with full pay exclusive of
Saturdays and Sundays and holidays without limitation as to the number of days of
iv. Clearance of the deceased from money and property accountability vacation and sick leave that they may accumulate.
g) Salary Accruing Pending Suspension (Sec. 220, GAAM, Vol. I) c) Maternity Leave
i. Certified true copy of exoneration or of court's order dismissing the i. Approved application for leave, accompanied by a medical certificate
criminal case against the employee or absolving him/her; or Certified True showing that the married woman is on the family way and nearing delivery,
Copy of authority granted by the department head for payment of salary or Medical Certificate showing actual child delivery or natural abortion not
during suspension; or covered by illegitimate union or immortality, if leave applied for its
submitted after delivery or abortion
ii. Certified true copy of the President's order of suspension providing for
payment of salary during suspension. ii. Marriage Certificate for first maternity leave claim
2) Commutation of Leave of Absence iii. Certificate of clearance from money and property accountability (Sec. 235,
GAAM, Vol. I)
a) Vacation or Sick Leave
Married women in the government service who have rendered two years or more of
i. Application for leave approved by the proper head of agency or his duly continuous service shall be entitled to maternity leave of 60 days with full pay. For
authorized representative those who have rendered less than two (2) years of government service at the time of
the enjoyment of maternity leave, the computation of their maternity leave shall be
ii. Clearance certificate from money and property accountability, if absence is proportionate to their length of service (Sec. 17 Rule XVI Omnibus Rules Implementing
in excess of thirty days Book V of EO No. 292)
iii. Medical certificate in case of sick leave, except where leave not exceeding When an employee wants to report back to duty before the expiration of her maternity
five (5) days had already been enjoyed leave, she may be allowed to do so without refunding the commuted money value of
the unexpired portion of her maternity leave and she shall be paid the corresponding
salary for the service rendered

The foregoing provision shall be subject to a certification of a physician that the subject viii. Claimant's affidavit, that there is no pending case against him/her (RA 3019)
employee is physically fit for work (Sec. 14 Rule XVI Omnibus Rules Implementing Book
V of EO 292) g) Overtime Pay (COA Cir. 81-155, Feb. 23, 1981)
d) Monetization of Leave/Service Credits i. Authority of the Department Head
i. Duly approved application for monetization of leave credits. However, no ii. Accomplishment Report
inclusive dates shall be indicated except the number of days applied for
iii. Daily Time Record
ii. Certification/Statement showing the balance of leave standing for the
credit of employee , which shall not be less than 15 days h) Payment of Overtime Compensation
e) Entitlement of monetization of leave credits Overtime compensation by the hour shall be computed on the basis of the authorized
monthly basic salary of the officer or employee authorized to render overtime services.
Government officials and employees in the career of non-career service whether However, as a general rule, the amount of overtime compensation, which may be
permanent, temporary of provisional or casual may be allowed to monetize a maximum allowed an employee for a given calendar year, shall not exceed fifty percent (50%) of
of ten (10) days leave credits provided they have already accumulated at least fifteen his basic salary (Sec. 282 (a), GAAM, Vol. I)
(15) day vacation leave/service credits at the time of application.
Meal allowance in kind at P 20.00 per meal may be granted to officials and employees
f) Terminal Leave (COA Cir. 81-55, Feb. 23, 1981) who have rendered at least three (3) hours of overtime service before mealtime.
However, availment of the meal allowance in kind herein authorized shall constitute a
i. Approved application for Terminal Leave bar from collecting the overtime compensation authorized (Sec. 282, GAAM, Vol. II)
ii. Complete Service Record i) Officials and Employees not entitled to Overtime
iii. Clearance from Money and Property Accountability The payment of overtime service shall not apply to officials occupying positions
enumerated hereunder:
iv. Clearance from the Ombudsman
i. Department Secretaries
v. Statement of Assets and Liabilities
ii. Department Undersecretaries
vi. Copy of last appointment and appointment showing highest salary received if
the salary under last appointment is not the highest iii. Department Assistant Secretaries
vii. Clearances from fiscal's office, places of residence and place of last assignment iv. Bureau Directors and Regional Directors

In all cases, officials and employees who are on maternity leave, sick or vacation leave,
v. Assistant Bureau Directors and Assistant Regional Directors whether with or without pay, or on full time or part time detail with another
organizational unit of same agency, another agency or special project, or attending
vi. Department Service Chief and Assistant Department Service Chiefs training course/scholarship grant/seminar or any other similar activity or on official
travel shall not be entitled to subsistence allowance for the duration of their official
vii. Positions of equivalent category as an State Universities and Government- leaves, detail, attendance in a training course/scholarship grant/seminar, or any other
Owned and Controlled Corporation similar activity, or official travel. (Sec. 296 (e), GAAM, Vol. I)
viii. Intermediate positions and created in between the above enumerated positions m) Hazard or Hardship Allowance (Sec. 313, GAAM, Vol. II)
and inasmuch as these positions involve coordinative and integrative functions
and in some cases exercising general supervision over the line divisions and i. Evidence from the department of National Defense the place of
units (Sec. 284, GAAM, Vol. I) assignment/travel in a strife torn/hazardous area, or Certification from the
Regional Director concerned in case of assignment in mental hospital, radiation
j) Honorarium exposed clinic and laboratories or disease infested areas, or Certification from
the Philippine Institute of Volcanology and Seismology in case of volcanic activity
i. Authority to collect honorarium and/or eruption
ii. Certification of service rendered ii. Duly accomplished time record of employee or travel report
iii. Copy of contract, if any, between the agency and the personnel if latter is not iii. Certification of the accountant that funds are available for the purpose
an employee of the agency
iv. A copy of special order from the agency department head covering the
iv. Accomplishment report assignment to hazardous/difficult areas
k) Subsistence Allowance n) Representation and Transportation Allowance (RATA)
i. Daily Time Record/Evidence of Service Rendered i. Approved resolution/law authorizing grant of RATA
ii. Duly approved request for commutation ii. Certification that recipient does not use government vehicles and that said
amount was incurred in the performance of his duties.
l) Entitlement/Non-Entitlement to Subsistence Allowance
Subsistence allowance shall mean all allowance for meal or subsistence for an official or Annex 2: Maintenance and Other Operating Expenses (MOOE)
employee who, by the nature of his duties and responsibilities has to make his services
available in his place of work even during mealtime. (Sec. 243, GAAM, Vol. II) 1) Travel Expenses

1. Local Travel (E.O. No. 298, March 23, 2004)
iv. Rates shall follow the existing authorized rates
i. Travel Order or Authority to Travel approved by the Agency Head or his duly
authorized representative, or by the Department Head for travel exceeding Limitations in payment of Travelling Expenses
One (1) month but not less than three (3) months, or by President, if travel
exceeds three (3) months. A full travel allowance is allowed only in cases of absence from the permanent station
One (1) full day. For less than a full day, only the corresponding fractional part of the allowance.
ii. Approved Itinerary of Travel To determine fractional part, divide allowance equally into four (4) units corresponding to
breakfast, lunch, dinner and lodging.
iii. Certificate of Travel Completed
2. Foreign Travel
iv. Certificate of Appearance
Types of foreign travel
v. Tickets for place, bus, ship fare or its equivalent
i. Scholarship, fellowship, and training or study grants to be approved by the special
vi. Receipts, in case entitled to travel representation allowance committee on scholarship created for the purpose
ii. Conferences, special missions and other non-study trips
vii. Reimbursement Expense Receipt (RER), if necessary iii. Assignment to Foreign Service posts such as officials and employees of the
Department of Foreign Affairs, Trade and Labor Attaches etc.
For Department of Health Field Personnel
Allowable travel expenses
i. Itinerary of Daily Activities of Field Employees (IDAFE) (which consolidates
Itinerary of Travel, Certificate of Travel completed, Certificate of Appearance 1. Scholarship, fellowship and training or study grants
and Monthly Activity Report)
i. living allowance and per diems
ii. Summary of Travel Expenses Claim (STEC) (COA Cir. 89-306, May 5, 1989) ii. transportation
iii. clothing allowance
For Travel in Connection with Appearance in Court iv. tuition and matriculation fees, books and supplies
v. medical and dental care
i. Certificate of Attendance in court and copy of subpoena vi. Insurance
ii. Certificate to effect that he is a witness for the government and not a party in 2. Conference, missions and other study trips (Sec. 351, GAAM, Vol. I)
a civil case
i. Transportation
iii. If claimant is an ex-employee, Certificate that he was cited by reason of ii. Clothing allowance
knowledge of the case while he was still in the service iii. Representation expenses

iv. Daily allowance and reimbursable limit for hotel room rate Insurance
b) Telegrams, Cables and Wireless Charges (GAAM)
Documentary requirements
i. Invoices/Receipts (original copy)
i. Approval of the President for Department
Secretaries/Undersecretaries/Assistant Secretaries and other officials of ii. Copy of messages/telegrams/radiogram/cablegrams and all other wireless
equivalent rank, or of the Department Head for all other positions messages
ii. Approval of Special Committee on Scholarships - for scholarship, fellowship,
training and study grant c) Postage charges (SAM)
iii. Travel Order
iv. Approved Itinerary of Travel i. Duly approved requisition /PO
v. Authority from the Office of the President for representation allowances
vi. Certification that no clothing allowances has been received during the next ii. Statement showing by denomination the balance on the date of the last
preceding twenty four (24) months for claims for clothing allowance purchase, the issues since then, and the balances on the date of new purchase
vii. Certificate of Travel Completed
viii. Tickets iii. Evidence of Payment/OR
ix. Receipts, in case of pre travel expenses
x. For representation expenses, Certification under oath that expenses incurred 3) Repairs and Maintenance of Government Facilities
were pursuant to Title II (Conferences, Special Missions and Other Non-Study
Trips) Section 17 of EO 129, as amended in accordance with prior authority a) By Administration
obtained from the Office of the President
xi. Report on Travel i. Authority to undertake project
2) Communication Services ii. Program of work/detailed cost estimates approved by proper authorities
a) Telephone Charges b) By Contract
i. Receipts/Invoices/Bill (Original Copy) i. Contract signed by the parties and witnessed by Chief Accountant/Treasurer
ii. Certification of the Head of the agency concerned or his authorized ii. Plans, Programs of Work, Detailed Cost Estimates approved by proper
representative that there was no service interruption and that all telephone authorities
numbers covered are properly indicated on company's bill
iii. Certificate of availability of Funds, duly verified by the Auditor
iii. For long distance calls, certification of the Head of the agency that the long
distance calls was strictly official in nature, exceptionally urgent and absolutely iv. Accomplishment Report
necessary

v. Affidavit of contractor that all bills for materials used and labor employees
have been paid as corroborated by a certificate of project engineer v. Contract documents and performance bond
Thru Public Bidding (First Payment) vi. Program of Work and Detailed Cost Estimates
i. Advertisement/Call for Bids vii. Notice to Commence Work
ii. Winning Bidders offer and Bid Tender of other participants/abstract of bids viii. Inspection Report and Contractor's accreditation
iii. Letter of Award Acceptance of Bid proposal Succeeding Payment (Additional)
iv. Contract Documents and Performance Bond i. Bill of Creditor
v. Plans and Specifications ii. Progress Report of Accomplishment
vi. Notice to Commence Work iii. Inspection Report
vii. Inspection report and Contractor's accreditation Succeeding Payment Final Payment (Additional)
(additional)
i. Certificate of completion and final acceptance
viii. Bill of Creditor ii. Certificate of final inspection
ix. Progress Report of Accomplishment iii. Affidavit of the contractor stating that all bill of materials used and laborers
employed have been paid
x. Inspection Report
Payment of Change or Extra Work Order and Contract Price Adjustment
Final Payment (Additional)
i. Same as by Administration and by contract if not yet submitted
i. Certificate of Completion and Final Acceptance • Certificate of Final Inspection
ii. Approved change order or extra work and approval by the proper authorities of
ii. Affidavit of the contractor stating that all materials used and laborers employed price adjustment
have been paid
iii. Breakdown of total addition/ deduction amount involved into work items and
iii. Negotiated Contract (First Payment) cost components including detailed quantity estimates of any additional work
iv. Authority to enter into negotiated contract

iv. Cost estimate showing in sufficient detail the derivation of all prime/direct cost
and overhead/indirect cost of new items of work not included in original contract 5) Transportation Services
v. Duly approved revised plans indicating changes made inspection report a) Hauling Services
4) Maintenance of Motor Vehicles Used for Official Travels of Officials and Employees i. Contract of Service
a) Repair and/or servicing ii. Certificate of Receipts of Agency consignee of articles in good order and condition
i. Approval request for repair and/or servicing b) Shipment
ii. Pre-repair inspection (COA Cir. 89-229 A, 9/8/99) i. Copy of bills of lading and/or airway bill as the case may be, signed by consignee
or his representative
iii. Certificate of the Property Officer stating the vehicle belongs or is used by the
agency, and the repair is necessary and that the defects in the vehicle was ii. Certificate of Receipt of agency - consignee of articles in good condition
incurred through normal wear and tear and not due to the fault or negligence of
any official or employee 6) Supplies and Materials
iv. Report of Waste Materials for replacement of spare parts a) Common to all kinds of Purchase or Contracts
v. Official receipts for expenses incurred for repair and servicing and spare parts i. Requisition and Issue Slip (RIS) duly approved by proper authorities
b) In case of Major Repair ii. Purchase/Letter Order/ Contract, duly approved by proper officials
i. Canvass from at least three (3) contractors, or public bidding if amount involved iii. Original copy of the dealer's/supplier's invoice duly signed by the dealer or his
is more than P 50,000.00 representative
ii. Certificate of Accreditation of repair shop issued by Accreditation Board iv. Inspection report or waiver of inspection
iii. Job Order/Contract v. Results of tests or analysis by proper government agency if articles are subject
to test
iv. Guaranty Certificate of Contractor
vi. Certificate of availability of funds
v. Certificate of Acceptance by Property Officer of the work or service done in
conformity with specifications of contract and accomplished within the specific vii. Memorandum Receipts signed by officials or employees to whom semi-
period of time expendable supplies had been issued

i. Driver's Trip Ticker duly accomplished and approved
viii. Stock position sheet in case any single commodity requisitioned exceeds
P1,000.00 in value ii. Requisition and Issue Voucher
ix. Evidence of acceptance and receipt by the agency iii. Invoices
Thru Public Bidding (additional) iv. Fuel consumption report
i. Copy of advertisement 7) Rents
ii. Winning bidder's offer i. Contracts of Lease
iii. Bid tenders of other participants ii. Statement of Account/official receipt
iv. Letter of award of acceptance and 8) Interest
v. Performance bond of winning bidder i. Authority for incurrence of obligations together with the terms and conditions for
repayment and the rates of interest charged (SAM)
Thru Emergency Purchase (additional)
9) Grants, Subsidies and Contributions
i. Canvass papers from at least three (3) bonafide suppliers
i. Memo of Agreement/Authority for grants, subsidies and contributions (SAM)
ii. Certificate of head of agency or his duly authorized representative as to the
necessity and jurisdiction for emergency purchase, and that the price paid or 10) Awards and Indemnities
contracted for is reasonable and that it was the lowest obtainable at the time
of purchase or order b. Indemnify for injuries/sickness/death
Thru Exclusive Distributors (additional) i. Evidence showing that death, sickness or injury as the case may be, occurred
or was contracted in line of duty
i. Certificate of exclusive distributorship
ii. Certificate of Award issued by committee as Physical examination of the
ii. Certificate that there are no sub dealers selling at lower prices and that no agency concerned (SAM)
suitable substitute are available
c. Indemnify for damages to property
b) For Gasoline and Oil

i. Indemnity Bond, in case property being conveyed is unregistered or untitled
(SAM) i. Copy of pertinent law/authority
ii. Deed of absolute Sale or Conveyance (SAM) ii. List of employees lay off showing the names designations and last salary
received
iii. Deed of Conveyance or agreement to Demolish and Remove Improvement
iii. Service record of each employee duly certified by Head of Agency or his duly
iv. Certificate of Title (SAM) authorized representative
11) Water Illumination and Power Service iv. Certificate of Clearance from agency concerned
i. Bill/Official Receipts v. Certificate of Clearance from GSIS
12) Social Security Benefits, Awards and Other Claims vi. Certificate of Clearance from PAGIBIG
a. Retirement Claims vii. Statement of Assets and Liabilities
i. Application in writing duly endorsed to the system by the Head of Agency 13) Training and Seminar Expenses
concerned
i. Purchase of supplies and materials shall be in accordance with the procurement
ii. Complete service record including statement of leave of absence without pay requirement for "Supplies and Materials" particularly on emergency purchase
iii. Clearance from money, property and legal accountability ii. Receipts for other expenses incurred
iv. Approval of retirement by the employer or agency and adjudication by the 14) Extraordinary and Miscellaneous Expenses
GSIS
i. Receipts and/or other document evidencing disbursement
v. Clearance from GSIS
ii. Certificate executed by the official concerned that the expenses sought to be
vi. Fiscal's clearance -- place of assignment and place of residence reimbursed have been incurred for the purpose (in case of extraordinary and
miscellaneous expenses)
vii. Affidavit of applicant that he has no pending criminal case
15) Confidential and Intelligence Expenses
viii. Statement of Assets and Liabilities (COA Cir. 81-155, 2/23/81)
a. The confidential and intelligence funds shall be utilized for the following purposes:
b. Separation Pay

1. National defense, peace and order, intelligence, counter intelligence programs of 16) Advertising and Publication Expenses
the Department of National Defense and related agencies;
i. Statement of Account
2. For specific intelligence and/or confidential operation of the National Government ii. Clippings of the advertisement and notices published
agencies and government owned or controlled corporations with appropriation for
intelligence and/or confidential funds; 17) Other Services
3. In the case of the national security fund, for undertaking national security missions, a. Repair and Maintenance Done by Private Contractor
and
i. Repairs thru negotiated contracts and public bidding same as by
4. For police investigation and detection activities, policies intelligence and arson administration and by contract
investigation activities. (COA Cir. 88-293 12/12/88) ii. Job Order/Contract
iii. Report of Waste Materials
i. Certified Xerox copy of pre-audited cash advance vouchers iv. Certificate of Property Officer that equipment belong to or is used by the
agency concerned that repair is necessary through normal wear and tear
ii. Certified Xerox copy of request for obligation of allotment and not due to the fault or negligence of an employee or official
v. Guaranty/Warranty/Certificate of repairman
iii. Certified Xerox copy of allotment advice vi. Pre-repair inspection
iv. Undertaking of the summary of expense - Form No. 1 b. Subscription to Periodicals and Technical Magazines
v. Certified Xerox copy of (face of the paid check, reverse side of paid check i. Copy of subscription
indicating endorsement made, itemized list of disbursement) ii. Evidence of receipt of payment
5. Additional documents required to support ordinary disbursements c. Radiocast and Telecast, Video Coverage and Documentary Films
i. For incidental expenses such as transportation and entertainment of i. Contract between agency and radio or TV station specifying conditions or
assets/informers vouchers shall be supported by receipts, invoices, bill for radio cast or telecast (Sec. 415 (a), GAAM, Vol. I)
board and lodging, itinerary of travel, travel order, certificate of travel
completed, and certificate of appearance ii. Evidence of receipt of payment
ii. For purchase of supplies and materials and equipment, vouchers shall be
supported by purchase/letter orders, report of canvass, delivery receipts, d. Payment of Legal Expenses
waste material report and other pertinent documents
iii. For purchase of information or payment or reward vouchers shall be i. Application of official or employee concerned giving the facts of offence he
supported by documents evidencing receipt of payment was charged with and approved by proper Department Head concerned and
passed upon by the COA Chairman

Commissioner of Civil Service for the
ii. Copies of decision exonerating him/her from administrative or criminal purpose of attesting appointments made
liability Receipts of actual and related expenses incurred by provincial governors, city mayors and
iii. Certificate of availability of funds (Sec. 4.16(a), GAAM, Vol. 1) municipal mayors. (Sec. 8, RA 2264)
January 1, 1960 1. Ten percent of all real estate taxes
e. Security and Janitorial Services R.A. 2370 – “Barrio Charter” collected within the barrio accrue to the
barrio general fund, which sum shall be
i. Contract executed between agency and private firm deducted in equal amounts from the
respective shares of the province and
ii. Copy of bond which is equal to the cost of labor under contract municipality. Provided, that the municipal
treasurer may designate the barrio
lieutenant and/or the barrio treasurer as
his deputy to collect the said taxes. (Sec.
LAWS THAT HAVE HAD MAJOR INFLUENCE ON PRESENT FISCAL ORGANIZATION IN THE 15, RA 2370)
PHILIPPINES 2. The barrio council with the approval of a
two-thirds vote of the barrio assembly, xxx,
June 19, 1959 1. Secretary of Finance Reviews provincial may raise, levy, collect and/or accept
R.A. 2264 – “An act Amending the Laws and city budgets (Sec. 1, RA 2264). monies and other contributions from the
Governing Local Governments by Increasing 2. Provincial Treasurer reviews Municipal following sources
their Autonomy and Reorganizing Provincial District budgets (Sec. 1, RA 2264)  Voluntary contributions annually from
Governments” 3. Secretary of Finance reviews tax each male or female resident twenty
ordinances and has the authority to one years of each or over
suspend the effectivity of the ordinance if  Licenses on stores, signs, signboards
in his opinion, the tax or fee therein levied and billboards displayed or
or imposed is unjust, excessive, oppressive, maintained in any place exposed to
or confiscatory. (Sec. 2, RA 2264) public view except those displayed at
4. Appointments by Provincial Governors, the place or places where profession
City Mayors and Municipal Mayors become or business advertised thereby is in
effective upon the issuance of such whole or in part conducted
appointments and attestations by the  A tax on gamecocks owned by
provincial treasurers of provinces, in case R.A. 2370 – “Barrio Charter” (cont.) residents of the barrio and on the
of appointments made by provincial and cockfights conducted therein.
municipal mayors, and by the city Provided, that nothing herein shall
treasurers in case of appointments made authorize the barrio council to permit
by city mayors. Provincial treasurers and cockfights
city treasurers are deputized by the  Monies, materials and voluntary labor

for specific public works and (Sec. 2, RA 5185)
cooperative enterprises of the barrio 2. Provincial treasurers are agent of the
raised from residents landholders, Philippine National Bank (Sec. 11(I-d), RA
produces and merchants of the barrio 5185)
 Monies from grants-in-aids, subsidies, 3. The allotment share of provinces and cities
contributions and revenues made is increased from ten to thirteen per
available to barrios from municipal, centum and the allotment share of
provincial or national funds municipalities is increased from two to four
 Monies from private agencies and per centum. The basis of the allotment
individuals shall be the collections during the
 An additional percentage, not preceding fiscal year, to be distributed
exceeding one fourth of one percent among the provinces, cities, municipalities
of the assessed valuation of the as follows: a) seventy per centum on the
property within the barrio, collected basis of population as shown by the latest
by the municipal treasurer along with official census, and b) thirty per centum in
the tax on real property levied for proportion to the land area. (Sec. 13, RA
municipal purposes by the 5185)
municipality and deposited in the June 28, 1973 The Secretary of Finance and the provincial
name of the barrio with the municipal P.D. – “Local Tax code” (amended March treasurer or the city treasurer are given
treasurer. Provided, that no tax or 20, 1974 by PD 426) authority to review tax ordinances and to
license fee imposed by a barrio suspend the effectivity of any tax ordinances.
council shall exceed fifty per cetrum (provincial & city ordinances – Secretary of
of a similar tax or fee levied, assessed Finance, municipal ordinances – provincial
or imposed by the municipal council. treasurer, barrio ordinances – city treasurer.
(Sec. 14, RA 2370 (Sec. 44 of PD 231)
3. The Barrio treasurer collects all taxes May 20, 1974 1. Code governing the appraisal and
existing (except real property taxes), fees P.D. 464 – “Real Property Tax Code” assessment of real property for purposes
and contributions due the barrio treasury of taxation by provinces, cities and
for which he shall issue official receipts. municipalities, as well as the levy,
Xxx (2nd par. Sec. 16, RA 2370) collection and administration of the real
September 12, 1967 1. Grants local governments greater freedom property tax. (Sec. 1, PD 464)
R.A. 5185 – “Decentralization Act of 1967” and ampler means to respond to the needs 2. Provides for the levy, assessment and
of their people and promote their collection in the provinces, cities, and
prosperity and happiness and to effect a municipalities an annual ad valorem tax on
more equitable and systematic distribution real property , such as land, buildings,
of governmental powers and resources. machinery and other improvements affixed

or attached to real property not specifically council may, by ordinance, provide for the
exempted. (Sec. 38, PD 464) imposition and collection of a special levy
3. Empowers provincial, city or municipal on the lands comprised within the
boards or councils to fix uniform rate of province, city or municipality xxx especially
real property tax applicable to their benefited by the laying out, opening,
respective localities as follows constructing, straightening, widening,
 In the case of the province, the tax grading, paving, curbing, walling,
shall be fixed by ordinance of the deepening,, or otherwise establishing,
provincial board at the rate of not less repairing, enlarging,, or improving public
than one fourth of one percent but avenues, roads, streets, alleys, sidewalks,
not more than one half of one percent parks, plazas, bridges, landing places,
of the assessed value of real property wharves, piers, docks, levees, reservoirs,
 In the case of a city, the tax shall be waterworks, water courses, esteros,
fixed by ordinance of the provincial canals, drains and sewers: xxx Within the
board or city council at the rate of not meaning of this Section, all lands
less than one half of one percent but comprised within the district benefited,
not more than two percent of the except lands exempt from the real
Cont May 20, 1974 assessed value of real property. (Sec. property tax under Section forty hereof,
P.D. 464 – “Real Property Tax Code” 39, PD 464) shall be subject to the payment of the
4. Imposes annual tax of one percent on real special levy. (Sec. 47, PD 464)
property that accrues to the Special 7. The real property tax for any year shall
Education fund created under R.A. No. attach and become due and payable on the
5447, and is in addition to the basic real first of January and from the same date
property tax which local governments are said tax and all penalties subsequently
authorized to levy, assess and to collect accruing thereto shall constitute a lien
under this Code xxx (Sec. 41, PD 464) upon the property subject to such tax. Said
5. Imposes an additional real property tax on lien shall be superior to all other liens,
idle lands at the rate of five percent per mortgages, or encumbrances of any kind
annum based on the assessed value of the whatsoever, shall be enforceable against
property as determined by the Provincial the property whether in the possession of
or City Assessor of the Province or City the delinquent or any subsequent owner
where the property is located, or by the or possessor, and shall be removable only
Municipal Assessor in the case of idle lands by the payment of the delinquent taxes
situated in the municipalities of and penalties.
Metropolitan Manila. (Sec. 42 (a), PD 464) Cont May 20, 1974 8. The real property tax on properties
6. The provincial, city, municipal boards or P.D. 464 – “Real Property Tax actually, directly and exclusively used for

education purposes as provided under require notification in any province,
Presidential Decree No. 261 shall begin to municipality, or city to be accomplished
accrue on January 1, 1975. (Sec. 56, PD through the mailing of individual tax bills
464) stating the amount of the annual tax due,
9. The collection of the real property tax and the quarterly installments, its due date, the
all penalties accruing thereto, and the delinquency and the applicable penalty.
enforcement of the remedies provided for (Sec. 59, PD 464)
in this Code or any applicable laws, shall be 14. Real Property taxes may, in the discretion
the responsibility of the treasurer of the of the taxpayer, be paid without penalty in
province, city or municipality where the four installments, xxx except the special
property is situated. (Sec. 57, PD 464) levies authorized under Sections forty
10. The provincial or city assessor shall prepare seven and fifty five of this Code which shall
and submit to the treasurer of the be governed by the local ordinance or
province, city or municipality, on or before Department Order issued by the Secretary
the thirty-first day of December of each of Finance, as the case may be.
year, an assessment roll containing a list of Cont May 20, 1974 15. Beginning with calendar year 1978 and
all persons to whom real properties have P.D. 464 – “Real Property Tax thereafter, the President of the Philippines
been newly assessed or reassessed and the may, at his discretion or upon
values of such taxable properties. (Sec 58, recommendation of the Secretary of
PD 464) Finance, authorized the grant of discounts
11. The provincial or city treasurer shall, on or on taxes due on real property at such rates
before the thirty first of January each year, and for such periods as he may fix, if he
cause notice of the periods during which deems that the public interest so requires.
real property tax may be paid without (Sec. 61, PD 464)
penalty.
12. The notices in their respective jurisdiction June 3, 1974 1. The provincial, city and municipal treasurer
shall be posted at the main entrance of the P.D. 477 – “Decree on Local Fiscal shall be the chief financial officer of their
provincial building or city hall of all Administration” respective local governments and in such
municipal buildings and in public capacity shall provide technical and staff
conspicuous place in each barrio, and services to the chief executive and other
published in a newspaper and announced local officials in budget preparation,
by crier at least three times. authorization, execution and accountability
13. The form and detail shall be prescribed by (Sec. 24, PD 477
the Secretary of Finance: Provided, 2. Monies shall not be disbursed unless the
however, that in lieu of or in addition to treasurer concerned certifies that
such notice, the Secretary of Finance may appropriations and funds are available for

the purpose. (Sec. 51, PD 477) June 25, 1975 Loan applications of LGUs are submitted to the
3. Checks in settlement of obligation shall be P.D. 752 – “Credit Financing for Local Secretary of Finance for review and guarantee
drawn by the Provincial and City Treasurer, Governments the loans.
as the case may be, and shall be November 7, 1975 1. Creates a public corporation, to be known
countersigned by the Provincial or City P.D. 827 – “Creating the Metropolitan as the Metropolitan Manila, vested with
Auditor. (Sec. 52, PD 477) Manila and the Metropolitan Manila powers and attributes of a corporation
4. Provincial or City Treasurer shall be Commission” including the power to make contracts, sue
appointed by the President of the and be sued, acquire, purchase,
Philippines upon recommendation of the expropriate, hold transfer and dispose of
Secretary of Finance. (Sec. 60, PD 477) property and such other powers as are
5. The provincial or city treasurer exercises necessary to carryout its purposes. The
direct and immediate supervision, corporation shall be administered by a
administration and control over public Commission created under this Decree.
markets and the personnel thereof xxx. (Sec. 1, PD 824)
The provincial treasurer shall exercise 2. The Commission is given jurisdiction over
general supervision over municipal public the cities of Manila, Quezon, Pasay and
markets. (Sec. 60 © of PD 477) Caloocan and the municipalities of Makati,
6. The Secretary of Finance reviews or city Mandaluyong, San Juan, Las Pinas,
budgets (Sec. 2, PD 477) Malabon, Navotas, Pasig, Pateros,
7. The Secretary of Finance reviews provincial Paranaque, Marikina, Muntinlupa and
or city budgets (Sec. 29, PD 477) TAguig in the province of Rizal, and the
8. The provincial treasurer reviews municipal municipality of Valenzuela, in the province
budgets. (Sec. 30, PD 477) of Bulacan, all of which together shall
9. The Secretary of Finance may authorize henceforth be known as Metropolitan
appropriations in excess of the percentage Manila
(45% - 55%) which shall not be more than 3. All the city or municipal treasurers of the
25% of the maximum expendable amounts local government units placed under the
nor shall such exemptions be granted in Commission shall close their respective
case of overdrafts or imminence thereof. books of accounts for submittal to the
(Sec. 28, PD 477) Commission not later than December 15,
1975. Thereafter, their functions and
August 2, 1974 The local treasurer shall prepare, for the responsibilities shall be performed or
P.D. 526 – “Supply Management” approval of the local chief executive, an annual discharged by the Commission for Finance.
August 2, 1974 procurement program for the ensuing fiscal (Sec. 11, PD 824)
P.D. 526 – “Supply Management year. (Sec. 19, PD 526) April 12, 1976 1. Division of Metropolitan Manila into Local
P.D. 921 – “Providing for the Administration Treasury and Assessment Districts

of Local Financial Services in Metropolitan  First District – Manila to the Budget Commission. (Sec. 1, PD 1373)
Manila, creating Local Treasury and  Second Distric – Quezon City, February 10, 1983 1. The Sangguniang Panlalawigan reviews
Assessment Districts therein” Pasig, Marikina, Mandaluyong Batas Pambansa 337 – “The Local municipal ordinances, resolutions and
and San Juan Government Code” executive orders. (Sec. 153, BP 337)
 Third District – Caloocan City, 2. The Municipal Treasurer is appointed by
Novotas and Valenzuela the Minister of Finance upon
 Fourth District – Pasay City, recommendation of the Municipal Mayor,
Makati, Paranaque, takes charges of the municipal treasury
Muntinlupa, Las Pinas, Pateros office and acts as the chief financial officer
and Taguig (Sec. 1, PD 921) of the municipality.
2. Under the general direction of the 3. The City Treasurer is appointed by the
Commissioner for Finance of the MMC, the President of the Philippines upon
City Treasurers of the Treasury districts recommendation of the Minister of
shall exercise general supervision over the Finance, takes charges of the city treasury
April 12, 1976 local treasury offices of the municipalities office and acts as the chief financial officer
P.D. 921 – “Providing for the Administration belonging to their respective districts. (Sec. of the city. (Sec. 181, BP 337)
of Local Financial Services in Metropolitan 2, PD 921) 4. The Assistant City Treasurer is appointed
Manila, creating Local Treasury and 3. The power to appoint the Municipal by the Ministry of Finance upon
Assessment Districts therein” Treasurers, Assistant Municipal Treasurer recommendation of the City Mayor.
of the municipalities within the MMA shall 5. The Provincial Treasurer is appointed by
be vested upon the Commissioner for the President of the Philippines upon
Finance upon recommendation of the City recommendation of the Minister of
Treasurer. (Sec. 3, PD 921) Finance.
4. The City Treasurers of MMA shall be 6. The Provincial Treasurer takes charge of
appointed by the President of the the disbursement and accounting of all
Philippines upon recommendation of the provincial funds and other funds the
Secretary of Finance. (Sec. 5, PD 921) custody of which may be entrusted to
May 16, 1978 The Budget Commission is made responsible him/her by law or other competent
P.D. 1375 – “Transferring to the Budget for the review and evaluation on the annual authority. (Sec. 212, BP 337)
Commission the functions of Local principal and supplemental budgets and other 7. The Assistant Provincial Treasurer is
Government Budget Administration” financial statements covering all funds of local appointed by the Minister of Finance upon
governments, and the review and formulation recommendation of the Provincial
of recommendations on resolutions of local Governor. (Sec. 213, BP 337)
legislative bodies involving appropriation of January 9, 1990 1. The Metropolitan Authority is constituted
local funds. These functions presently E.O. 392 – “Constituting the Metropolitan to cover the four (4) cities and thirteen (13)
performed by the DOF, are hereby transferred Manila Authority” municipalities comprising the Metropolitan

Area. 134, LGC)
2. The Authority is given jurisdiction over the 3. Rates of levy are expanded and increased.
delivery of basic urban services requiring 4. The LGUs sharing in the proceeds of real
coordination in the Metropolitan Manila. property tax is increased.
Covered among the basic urban services 5. IRA shares of LGUs are increased and the
are land use, planning and zoning, traffic formula for distribution to the LGUs
management, public safety, urban revised.
development and renewal, an 6. The power of review of local tax
management control of operations during ordinances by the Secretary of Finance are
calamities and emergencies affecting removed and transferred to the
public welfare and safety, and sanitation Sangguniang Panlalawigan.
and waste management. (Sec. 1, EO 392) 7. The power to appoint local treasurers is
3. The authority is governed by the retained by the Secretary of Finance.
Metropolitan Manila Council composed of
the Mayors of the four (4) cities and March 1, 1995 1. The affairs of Metropolitan Manila are to
thirteen (13) municipalities of R.A. 7924 – “Creating the Metropolitan be administered by the Metropolitan
Metropolitan Manila. (Sec. 2, EO 392) Manila Development Authority” or Manila Development Authority (MMDA),
4. City and municipal treasurers of the local “MMDA” which replaces the Metro Manila
government units comprising Metropolitan Authority. (MMA)
Manila continue to collect all revenues and 2. The MMDA continues to receive the
receipts accruing to the Metropolitan Internal Revenue Allotment (IRA)
Manila Commission and remit the same to previously allocated to the MMA (Sec.
the Authority. (Sec. 7, EO 392) 10(b), RA 7924)
5. All city and municipal treasurers, municipal 3. The MMDA is likewise empowered to levy
assessors, their assistants, and all other fines, and impose fees and charges for
officials whose appointment was vested various services rendered. (Sec. 10 (c), RA
upon the Metropolitan Manila Commission 7924)
shall be appointed by the President of the 4. Five percent of the total gross revenue of
Philippines, upon recommendation of the the preceding year, net of the internal
Council, subject to the civil service law, revenue allotment, of each LGU covered
rules and regulations. (Sec. 8, EO 392) (per Section
January 1, 1992 1. Major powers, functions and services July 27, 2009 1. The present Local Calamity Fund shall
R.A. 7160 – “The Local Government Code of therefore exercised by the national henceforth be known as the Local Disaster
1991” of “LGC” government are devolved to the LGUs. RA 10121 (NDRRMC) – “An Act Risk Reduction and Management Fund
(Sec. 17, LGC) Strengthening The Philippine Disaster Risk (LDRRMF). Not less than five percent (5%)
2. Provinces are given taxing powers. (Sec. Reduction And Management System, of the estimated revenue from regular

Providing For The National Disaster Risk sources shall be set aside as the LDRRMF services to be identified by the local
Reduction And Management Framework to support disaster risk management sanggunian.
And Institutionalizing The National Disaster activities such as, but not limited to, pre-
Risk Reduction And Management Plan, disaster preparedness programs including January 10, 2003 1. All procurement of the national
Appropriating Funds Therefor And For training, purchasing life-saving rescue government, its departments, bureaus,
Other Purposes.” equipment, supplies and medicines, for RA 9184 (Procurement Law) – “An Act offices and agencies, including state
post-disaster activities, and for the Providing For The Modernization, universities and colleges, government -
payment of premiums on calamity Standarization And Regulation Of The owned and/or-controlled corporations,
insurance. The LDRRMC shall monitor and Procurement Activities Of The Government government financial institutions and local
evaluate the use and disbursement of the And For Other Purposes” government units, shall, in all cases, be
LDRRMF based on the. LDRRMP as governed by these principles:
incorporated in the local development 2. Transparency in the procurement process
plans and annual work and financial plan. and in the implementation of
Upon the recommendation of the procurement contracts.
LDRRMO and approval of the sanggunian 3. Competitiveness by extending equal
concerned, the LDRRMC may transfer the opportunity to enable private contracting
said fund to support disaster risk reduction parties who are eligible and qualified to
work of other LDRRMCs which are participate in public bidding.
declared under state of calamity. 4. Streamlined procurement process that will
2. Of the amount appropriated for LDRRMF, uniformly apply to all government
thirty percent (30%) shall be allocated as procurement. The procurement process
Quick Response Fund (QRF) or stand-by shall simple and made adaptable to
fund for relief and recovery programs in advances in modern technology in order
order that situation and living conditions to ensure an effective and efficient
of people In communities or areas stricken method.
by disasters, calamities, epidemics, or 5. System of accountability where both the
complex emergencies, may be normalized public officials directly or indirectly
as quickly as possible. involved in the procurement process as
3. Unexpended LDRRMF shall accrue to a well as in the implementation of
special trust fund solely for the purpose of procurement contracts and the private
supporting disaster risk reduction and parties that deal with government are,
management activities of the LDRRMCs when warranted by circumstances,
within the next five (5) years. Any such investigated and held liable for their
amount still not fully utilized after five (5) actions relative thereto.
years shall revert back to the general fund 6. Public monitoring of the procurement
and will be available for other social process and the implementation of

awarded contracts with the end in view of prescribe the time, manner, terms and
guaranteeing that these contracts are conditions for the payment of tax. In case
awarded pursuant to the provisions of this of fraud or failure to pay the tax, the
Act and its implementing rules and sangguniang panlalawigan may impose
regulations, and that all these contracts such surcharges, interest and penalties as
are performed strictly according to it may deem appropriate.
specifications.
5. The proceeds from the amusement tax
GAAM shall be shared equally by the province
and the municipality where such
amusement places are located."
May 21, 2009 1. The province may levy an amusement tax February 24, 2001 1. A municipality or a cluster of barangays
to be collected from the proprietors, may be converted into a component city if
RA 9640 (Amusement Tax) –An Act lessees, or operators of theaters, cinemas, RA 9009 – “An Act Amending Section 450
Amending Section 140 (A) Of Republic Act it has a locally generated average annual
concert halls, circuses, boxing stadia, and Of Republic Act No. 7160, Otherwise Known income, as certified by the Department of
No. 7160, Otherwise Known As “The Local other places of amusement at a rate of not As The Local Government Code Of 1991, By
Government Code Of 1991” Finance, of at least One hundred million
more than ten percent (10%) of the gross Increasing The Average Annual Income pesos (P100,000,000) for the last two (2)
receipts from the admissions fees Requirement For A Municipality Or Cluster consecutive years based on 2000 constant
Of Barangays To Be Converted Into A prices, and if it has either of the following
2. In the case of theaters or cinemas, the tax Component City” requisites:
shall first be deducted and withheld by
their proprietors, lessees, or operators and  a contiguous territory of at least
paid to the provincial treasurer before the one hundred (100) square
gross receipts are divided between said kilometers, as certified by the Land
proprietors, lessees, or operators and the Management Bureau; or
distributors of the cinematographic films.
 a population of not less than one
3. The holding of operas, concerts, dramas, hundred fifty thousand (150,000)
recitals, paintings, and art exhibitions, inhabitants, as certified by the
flower shows, musical programs, literary National Statistics Office.
and oratorical presentations, except pop,
rock, or similar concerts shall be exempt 2. The creation thereof shall not reduce the
from the payment of the tax herein land area, population and income of the
imposed. original unit or units at the time of said
creation to less than the minimum
4. The sangguniang panlalawigan may requirements prescribed herein.

The State shall encourage the private
3. The territorial jurisdiction of a newly- sector to undertake the actual formation
created city shall be properly identified by and organization of cooperatives and shall
metes and bounds. The requirement on create an atmosphere that is conducive to
land area shall not apply where the city the growth and development of these
proposed to be created is composed of cooperatives.
one (1) or more islands. The territory need
not be contiguous if it comprises two (2) 3. Toward this end, the Government and all
or more islands. its branches, subdivisions,
instrumentalities and agencies shall
4. The average annual income shall include ensure the provision of technical guidance,
the income accruing to the general fund, financial assistance and other services to
exclusive of special funds, transfers, and enable said cooperatives to develop into
non-recurring income." viable and responsive economic
GAM Book 2 enterprises and thereby bring about a
strong cooperative movement that is free
from any conditions that might infringe
RA 6938 (Cooperative Code of the Phils) as 1. A cooperative is an autonomous and duly upon the autonomy or organizational
amended registered association of persons, with a integrity of cooperatives.
common bond of interest, who have
RA 9520 (Philippine Cooperative Code) – An voluntarily joined together to achieve their
Act Amending The Cooperative Code Of The 4. Further, the State recognizes the principle
social, economic, and cultural needs and of subsidiarity under which the
Philippines To Be Known As The "Philippine aspirations by making equitable
Cooperative Code Of 2008" cooperative sector will initiate and
contributions to the capital required, regulate within its own ranks the
patronizing their products and services promotion and organization, training and
and accepting a fair share of the risks and research, audit and support services
benefits of the undertaking in accordance relative to cooperatives with government
with universally accepted cooperative assistance where necessary.
principles. RRACCS
2. It is the declared policy of the State to

foster the creation and growth of BLGF CENTRAL OFFICE DIRECTORS
cooperatives as a practical vehicle for
promoting self-reliance and harnessing
people power towards the attainment of
economic development and social justice. JOCELYN T.PENDON

OIC – Executive Director TOMAS R. CARILLO BRENDA L. MIRANDA
Chief OIC – Chief
Policy, Planning, Programming and Standard Division Local Debt Monitoring and
Evaluation Division
ATTY. FLOSIE F. FANLO TAYAG, CESO IV JOSE ARNOLD M. TAN, CESO V
Deputy Executive Director for Administration Deputy Executive Director for
Operations RODERIC R. RAÑESES ALJIENAR J. BALIWAG
Local Treasury Examiner II Administrative Assistant III
ARMI M. ADVINCULA, CESE MA. PAMELA P. QUIZON

Director II OIC – Director
Administration, Financial and Management Service Local Fiscal Policy Service
NIÑO RAYMOND B. ALVINA

Director II
Local Government Units Operations Service
TECHNICAL WORKING GROUP: BLGF REGIONAL DIRECTORS
CONSOLACION Q. AGCAOILI DIVINA M. CORPUZ

OIC – Regional Director OIC – Regional Director MR. CARMELANE G. TUGAS MS. CONSOLACION Q. AGCAOILI
BLGF Region I BLGF Region III OIC-Regional Director OIC-Regional Director
BLGF CAR BLGF Region 1
GUALBERTO B. BERNAS IV AMALIA C. SANTOS

OIC – City Treasurer Parañaque City OIC – City Treasurer, Makati MS. TERESITA S. ATUEL MS. DIVINA M. CORPUZ
City OIC-Regional Director OIC-Regional Director
BLGF Region II BLGF Region III
ENCARNACION E. SANTIAGO JOSEPHINE A. ASEO

OIC – City Treasurer, Navotas City OIC – Chief MR. GEORGE T. ROMA MS. AIDA D. ABREGANA
Local Treasury Operations OIC-Regional Director OIC-Regional Director
Division BLGF Region IV-A (CALABARZON) BLGF Region IV-B (MIMAROPA)

MR. RICARDO T. CAWED MR. GILBERT B. GUMABAY MR. EDUARDO L. DEL ROSARIO
OIC-Regional Director OIC-Regional Director OIC-Regional Director
BLGF Region V BLGF Region VI BLGF Region XIII
MS. MERCY N. SANTOS MR. PETER PAUL D. BALUYAN

OIC-Regional Director OIC-Regional Director
BLGF Region VII BLGF Region VIII
MS. REMA E. CALDERON MR. HERMINIGILDA G. GARSULA

BLGF Region IX BLGF Region X
MS. LUNINGNING R. LLANTO MS. TESSIE S. MANGACCAT

BLGF Region X BLGF Region XI CONTRIBUTORS:
ANASTACIA R. LLANETA
Financial Analyst IV, BLGF Region 5 MARILOU Q. CAÑETE
Local Treasury Operations Officer IV
CYNTHIA G. FAURILLO BLGF Region 7
BLGF Region 5 LILIAN B. AGTULAO
Local Treasury Operations Officer III
NEMIA D. SEGOVIA BLGF CAR
BLGF Region 5 SUSAN S. NISPEROS
MARIA RHODORA C. GASCON BLGF Region I
Financial Analyst IV, BLGF Region 6
CATHERINE B. GUTIERREZ
JUNE ANN C. ABELLA Local Treasury Operations Officer III
Financial Analyst IV, BLGF Region 7 BLGF Region I

Asst. Provincial Treasurer, Masbate
MAYVELYN N. RODRIGUEZ
Local Treasury Operations Officer III CONCEPCION M. BENAVIDEZ
BLGF Region I Municipal Treasurer, Virac, Catanduanes
MARILYN F. RONQUILLO AMIE C. CASTELO

Financial Analyst IV, BLGF Region I Asst. Municipal Treasurer, Tiwi, Albay
LINA T. DIVINA NILDA V. GENEROSO

Local Treasury Operations Officer III Provincial Treasurer, Negros Occidental
BLGF Region III
ROSALIA C. AGUILING
ENGRACIO S. MAGSINO JR. Acting Asst. Provincial Treasurer, Iloilo
Local Treasury Operations Officer III
BLGF Region III ATTY. AMY GRACE O. BOLIVAR
City Treasurer, San Carlos City
NORMA M. MALLARE
Local Treasury Operations Officer IV ELSIE S. JIMENEA
BLGF Region 4-A City Treasurer, Silay City
ILUMINADA B. DIMAYUGA MA. CRISTINA G. FUENTES

Local Assessment Operations Officer IV City Treasurer, Cadiz City
BLGF Region 4-A
DENNIS T. CUNAG AYLIN C. PARADO
Local Treasury Operations Officer IV Asst. Municipal Treasurer, Consolacion, Cebu
BLGF Region 4-B
DELIA C. VILBAR
TROADIO P. BARRADAS Asst. City Treasurer, Ormoc City
BLGF Region 4-B ZOSIMA A. CORDANO
City Treasurer, Tacloban City
EILEEN M. VILLAGRACIA
Special Investigator III BLGF ELIZABETH A. LIM
Region XI City Treasurer, Catbalogan City
LINA R. REOYAN HARRIET I. FLORENCIO

Municipal Treasurer, Barauen, Leyte
GERARDO AVORQUE
CHARITA B. PACAYRA ICO-Provincial Treasurer, Leyte
Municipal Treasurer, Calbiga, Samar
ISABELO B. BELISARIO
Acting Assistant Provincial Treasurer
LIBERTO Y. YUSORES
OIC-Municipal Treasurer, Caramoran, Catanduanes WILMA K. IKITAN
Municipal Treasurer, Calanasan, Apayao
REYMUNDO F. QUIÑONES
Municipal Treasurer, Gubat, Sorsogon IMELDA I. MACANES
Provincial Treasurer, Benguet
AUGUSTO CEASAR E. ERMIÑO
Asst. Municipal Treasurer, Gubat, Sorsogon STEAWART B. BACCAY
Acting Provincial Treasurer, Ifugao
DIOSDADO V. LLOSALA
Municipal Treasurer, Castilla, Sorsogon CAWED A. GAMONNAC
Provincial Treasurer, Mt. Province
RICARDO E. BADILLO ALEX B. CABARRUBIAS

ICO-City Treasurer, Masbate City Asst. City Treasurer, Baguio City
REY C. VILLARUEL JOSEPHINE P. CALAJATE

OIC-Municipal Treasurer, Kalibo, Aklan Provincial Treasurer, Ilocos Norte
RIC D. TAN
Provincial Treasurer, Siquijor ROMELITA F. ALCANTARA
City Treasurer, Dagupan City
ATTY. REGAL M. OLIVA
City Treasurer, Mandaue City JOSEFINA J. CARANTO
City Treasurer, San Carlos City
ALLAN G. VALENCIANO
Provincial Treasurer, Northern Samar EDMAR C. LUNA
City Treasurer, San Fernando City
MERLINDA L. MARQUEZ
Municipal Treasurer, Malitbog, Southern Leyte NENITA B. COLOMA

Municipal Treasurer Solsona, Ilocos Norte MOHAYLA B. AMUD
Local Treasury Operations Officer IV,
SEGUNDINO O. URBANO BLGF Region IX
Municipal Treasurer, Nueva Era, Ilocos Norte
JEAN B. DAANG
AMI RUEL S. COLOMA Local Treasury Operations Officer IV
Municipal Treasurer, Pinili, Ilocos Norte BLGF Region X
LYDIA R. PADILLA
HUBERT MAURICIO A. PAZ Local Treasury Operations Officer II
Municipal Treasurer, Bantay, Ilocos Sur BLGF Region XI
ISIDRO II A. FERNANDEZ MIMBAI M. MANGELEN

Municipal Treasurer, Umingan, Pangasinan Local Treasury Operations Officer IV
BLGF Region XII
JULIET G. QUINSAAT
City Treasurer, Angeles City JESSIE A. CONCEPCION
Provincial Treasurer, Zamboanga Del Norte
ELVIRA M. REYES SUSAN S. YAMBA
City Treasurer, Tagaytay City Provincial Treasurer, Zamboanga Del Sur
ATTY.EDITH C. NAPALAN JOJO M. MAR

City Treasurer, Bacoor City OIC – Provincial Treasurer, Tawi-Tawi
FERNANDO M. MANZANERO SANCEN D. CARORO

Asst. City Treasurer, Tanauan City City Treasurer, Dipolog City
ARJAN V. BABANI PURA R. NUÑAL

ICO-City Treasurer, San Pablo City City Treasurer, Isabela City
ALEXANDER L. BEJOSANO GLENN C. BAÑEZ

Municipal Treasurer, Los Baños, Laguna OIC – City Treasurer, Cagayan De Oro City
MINERVA V. BOONGALING LOUELA S. MAYBITUIN

Municipal Treasurer, Pagsanjan, Laguna City Treasurer, Iligan City

MILDRED J. HINGCO
Provincial Treasurer, Lanao Del Norte MARLOUN C. GUMBAO
City Treasurer, Koronadal City
ELMA B. GULA
Provincial Treasurer, Misamis Occidental RODILON G. LACAP
ICO – City Treasurer, General Santos City
MERCELITA A. BARAN
Municipal Treasurer, Lala, Lanao Del Norte MANOLITO S, FILIPINAS
Provincial Treasurer, Cotabato Province
JUAN DESIDERIO U. PANADERO
Municipal Treasurer, San Fernando, Bukidnon PERLITA S. SEARES
OIC – Provincial Treasurer, Sultan Kudarat Province
REGINA C. RICAFORT
Provincial Treasurer, Davao Del Norte TADJUDIN A. BATUA-AN
OIC – Provincial Treasurer, Lanao Del Sur
MA. LYDIA M. ELLICA
ICO – Provincial Treasurer, Davao Del Sur ALVIN G. ELORDE
OIC – Provincial Treasurer, Agusan Del Sur
ADELINDA B. AMACNA
Provincial Treasurer, Davao Oriental ANNABELLE S. NALUAN
Provincial Treasurer, Dinagat Islands
MERLINA G. CABALLERO
City Treasurer, Island Garden City Of Samal MA. GAY Y. COTIANGCO
ICO – Provincial Treasurer, Surigao Del Norte
MARTHA FLOR D. DE RAMOS
Municipal Treasurer, Sto. Tomas, Davao Del Norte JINKY H. LADIA
Acting Assistant City Treasurer, Bayugan City
MA. REMA Q. CABUSAO

Acting Assistant City Treasurer, Butuan City
ALEXANDER U. DIMAPORO Municipal Treasurer, Amai Manabilang, Lanao
Del Sur
1. The Local Government Code of 1991, Annotated, Jose A. Nolledo, 1993 Reprint with
REFERENCES August 1993 Addendum;

2. Local Government Taxation ( Philippine Laws on Local Government Finance), Vol. III, 14. Manual on the New Government Accounting System (NGAS) for Local Government
Annotated, Sofronio B. Ursal, 1992; Units, Vol. I – III, Professional Development Center, COA, 2002;
3. Philippine Law on Local Government Taxation, Annotated, Sofronio B. Ursal, 2000; 15. Updated Description of Accounts under the NGAS (COA Circular No. 2004-008), Sept.
20, 2004;
4. Real Property Taxation, Annotated, Atty. Florecita P. Flores and Antonio A. Avila, Jr.,
First Edition, 2002; 16. 2005 IFAC Handbook of International Public Sector Accounting Standards (IPSAS);
5. Local Taxation and Fiscal Matters, Book II, LGC of 1991, PACTAA, Inc., 1992;
17. Handbook on the Implementing Rules and Regulations (IRR) to the Government
6. Local Government Code of the Autonomous Region in Muslim Mindanao (Muslim Procurement Reform Act (RA No. 9184);
Mindanao Autonomy Act No. 25);
18. Updated Budget Operations Manual (UBOM) for Local Government Units,
7. Decentralization in the Philippines – Strengthening Local Government Financing and Department of Budget and Management (DBM), June 2005;
Resource Management in the Short-Term, Joint Document of the World Bank and
Asian Development Bank, March 31, 2005; 19. Management Services, Part II, 2nd Ed., Nenita Angeles Deaño-Mejorada, 1993;
8. Omnibus Election Code of the Philippines (BP 881), Commission on Elections 20. Manual on Certificate of Settlement and Balances, Revised 1993, COA, 1993;
(COMELEC), 1992;
21. Rules Implementing the Barangay Micro-Business Enterprises (BMBE Act of 2002 or
9. Omnibus Rules Implementing Book V of EO 292, as Amended by MC No. 41, s. 1998, RA 9178), Department of Finance (DOF) Order No. 17-04;
Civil Service Commission (CSC);
22. Local Administrative Regulation (LAR) No. 1-85, DOF, 1985;
10. State Audit Code (Government Auditing Code of the Philippines or PD 1445),
Reprinted 1999, Accounting and auditing Development Office, Commission on Audit 23. Training Handbook on Cash Management and Control System, Professional
(COA); Development Center, COA, May 2004;
11. Government Accounting and Auditing Manual (GAAM), Vol. 1, Government Auditing 24. Training Handbook on Internal Control Structure, Professional Development Center,
Rules and Regulations, COA, 1992; COA, Nov. 2002;
12. Government Accounting and Auditing Manual (GAAM), Vol. 2, Government 25. Training Handbook on Risk Management, Professional Development Center, COA,
Accounting, COA, 1992; Dec. 2004;
13. Government Accounting and Auditing Manual (GAAM), Vol. 3, Government Auditing 26. Revenue Audit Manual for Local Governments, Vol. I, COA, 1997;
Standards and Procedures, and Internal Control System, COA, 1992;
27. DOF Circulars, Memoranda, Opinions, and Rulings, various years;

28. BLGF Circulars, Memoranda, Circular Letters, Opinions, and Rulings, various years;
29. COA Circulars and Memoranda, various years.

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UPDATED Copyright © Bureau of Local Government Finance, 2016

LOCAL TREASURY OPERATIONS MANUAL (LTOM) Telefax: (+632) - 522 - 8770 or 71

BOOK 1 Published by:

Bureau of Local Government Finance

First Printing, 2008.

2016 Revised Edition

Updated Local Treasury Operations Manual (LTOM)

Updated Local Treasury Operations Manual (LTOM) 2

Updated Local Treasury Operations Manual (LTOM) 3

Updated Local Treasury Operations Manual (LTOM) 4

Forms and Annexes

Updated Local Treasury Operations Manual (LTOM) 5

Chapter 1. Real Property Taxation

Chapter 2. Business and Other Local Taxes: Taxing Powers of Provinces

Chapter 3. Business and Other Local Taxes: Taxing Powers of Municipalities

Chapter 4. Business and Other Local Taxes: Taxing Powers of Cities

Chapter 5. Business and Other Local Taxes: Taxing Powers of Barangays

Chapter 7. The Community Tax

Chapter 8. Specific Applications of Authority to Tax Franchises

Chapter 9. Fees and Charges

Chapter 10. Local Government Enterprise Operations

Chapter 11. Credit Financing and Alternative Sources of Funds

Forms and Annexes

Updated Local Treasury Operations Manual (LTOM) 6

Updated Local Treasury Operations Manual (LTOM) 7

Updated Local Treasury Operations Manual (LTOM) 8

Updated Local Treasury Operations Manual (LTOM) 9

Chapter 1. FISCAL ORGANIZATION OF LOCAL GOVERNMENT UNITS (LGUs)...............................................2

Chapter 3. ROLES, DUTIES, AND RESPONSIBILITIES OF THE LOCAL TREASURER..........................................2

Updated Local Treasury Operations Manual (LTOM) 10

Chapter 1. FISCAL ORGANIZATION OF LOCAL GOVERNMENT UNITS (LGUs)

Section 1. Legal Framework

Updated Local Treasury Operations Manual (LTOM) 11

Updated Local Treasury Operations Manual (LTOM) 12

Updated Local Treasury Operations Manual (LTOM) 13

Updated Local Treasury Operations Manual (LTOM) 14

Updated Local Treasury Operations Manual (LTOM) 15

Updated Local Treasury Operations Manual (LTOM) 16

Updated Local Treasury Operations Manual (LTOM) 17

3.2 Treasury Operations Review Division/Section;

Figure 1. Organizational Structure of the Treasurer’s Office 3.3 Cash Division/Section;

3.4 Real Estate Division; and

Provincial 3.5 Business Tax Division/Section

Updated Local Treasury Operations Manual (LTOM) 18

Administrative Section 6. Qualifications of a Local Treasurer and Assistant Treasurer. –

Updated Local Treasury Operations Manual (LTOM) 19

4. Eligibility – First Grade civil service eligibility or its equivalent.

Updated Local Treasury Operations Manual (LTOM) 20

14. Status of the regular incumbent, if applicable;

4 1.3 Retirement from the service

Updated Local Treasury Operations Manual (LTOM) 21

b) Qualifications of the Acting/OIC Provincial/City/Municipal Treasurer and Acting/OIC-

Updated Local Treasury Operations Manual (LTOM) 22

Updated Local Treasury Operations Manual (LTOM) 23

Updated Local Treasury Operations Manual (LTOM) 24

Updated Local Treasury Operations Manual (LTOM) 25

Updated Local Treasury Operations Manual (LTOM) 26

Updated Local Treasury Operations Manual (LTOM) 27

Updated Local Treasury Operations Manual (LTOM) 28

9. Government Transaction Leave k) A Provincial/City/Municipal Treasurer or an Assistant Provincial/City/Municipal