LTOM Book 1 E

ONLINE EDITION - COMPLIMENTARY COPY

LOCAL TREASURY
OPERATIONS MANUAL
2ND EDITION
DEPARTMENT OF FINANCE
BUREAU OF LOCAL GOVERNMENT FINANCE
Manila, Philippines

Local Treasury Operations Manual (LTOM), 2nd Edition
Second Printing, 2020.
Printed in the Philippines
Published by the Bureau of Local Government Finance
ISBN: 978-971-94098-8-5
Copyright © Bureau of Local Government Finance, 2019 Telefax:

+632 522-8771 / 527-2803
Web: www.blgf.gov.ph
E-mail: central@blgf.gov.ph
All rights reserved.
No part of this book may be reproduced in any form or by any means without the express
permission of the copyright owner and the publisher.
Cover design and layout by: Jane Dianne S. Gaylican

ACKNOWLEDGMENT
This Local Treasury Operations Manual (LTOM), 2nd Edition, is a product of collaboration
of key stakeholders whose common goal is to improve the quality of local public financial
management, particularly the treasury operations of local government units.
The Technical Working Group, composed of BLGF Central and Regional Office Directors,
technical staff, and selected provincial, city and municipal treasurers, in various consultation
workshops and fora, helped bring about this new LTOM edition.
The BLGF acknowledges the Department of Finance, through the Secretary of Finance and the
Undersecretary for Revenue Operations, for the guidance and support in the updating and
publication of this LTOM.
The BLGF is likewise grateful for the support extended by the European Union’s Public
Financial Management 2 (EU PFM 2) Project, entitled “Support to the LGUs for More
Effective and Accountable Public Finance Management”, during the development phase of
this LTOM, and to the Asian Development Bank (ADB) during the consultations and exposure
workshops with key stakeholders and printing of the books.

ii

Republic of the Philippines
Roxas Boulevard Corner Pablo Ocampo, Sr. Street
Manila 1004
MESSAGE
The Department of Finance (DOF) has made great strides in building revenues and
maintaining fiscal discipline in the Philippines. We paved the way toward increasing national tax
effort, foreign direct investments and, more importantly, maintaining high growth over the past
few years. These trends, in turn, ensured the roll out initiatives on social services, as well as big-
ticket infrastructure projects to address gaps in economic development.
Our Bureau of Local Government Finance (BLGF) played and continues to play a key
and essential role to sustain all the gains we have achieved. Its strategies are focused on
implementing a three-pronged approach to modernize local finance: (i) policy reforms and
updating of regulations, (ii) improvements in systems and operations, and
(iii) high-impact capacity development.
This updated edition of the Local Treasury Operations Manual (LTOM) is indeed one
that will contribute to our goals of improving local finance as it incorporates updates on relevant
laws, policies, rules and regulations of the government. It seeks to address competency gaps by
providing local treasurers relevant information in key areas, such as budgeting, accounting,
auditing, supply management, real property assessment, financing, custody and disbursement of
funds, among others.
I believe this resource complements our strategy to professionalize the ranks of local
treasurers, which is key to a more transparent, independent and sustainable local fiscal landscape.
Equipping them with the right skills and ethical orientation to perform their jobs well will
likewise increase tax collection and revenue generation, and reduce LGUs’ dependency on the
internal revenue allotment.
I have high hopes that local treasurers will adopt the LTOM and take on a proactive
stance to further improve the efficiency of services provided by their respective LGUs. Cutting
red tape and ensuring a business-friendly environment will not only reduce the stress and cost of
tax-related processes, but also attract investments and ensure efficient delivery of social services.
I am confident that our cumulative and collaborative efforts will enable us to achieve a long
period of high and inclusive growth that leads to the economic inclusion of all Filipinos.
Thank you.
CARLOS G. DOMINGUEZ
Secretary of Finance
iii

Manila 1004
MESSAGE
Congratulations to the Bureau of Local Government Finance (BLGF) for the publication
of this Local Treasury Operations Manual (LTOM), 2nd Edition.
We, at the Department of Finance (DOF), recognize the achievements and
accomplishments of your office to not only modernize local finance, but also to maintain
excellence and integrity in local fiscal administration. Despite the challenges, the BLGF
continues to put in place long-term policies and initiatives that seek to transform local
government units (LGUs) into becoming more innovative and independent, able to respond to
the growing demands to sustain our country’s thriving economy.
The LTOM, thus, places clearer focus on the vital role played by local treasurers, and
the contributions they make to build and drive LGUs’ capacities to allocate their own funds to
where they are needed most. It reaffirms DOF’s policies on good fiscal governance and LGU
fiscal autonomy, which are both critical and strategic in the achievement of our development
goals.
Through this Manual, local treasurers can now acquire the necessary knowledge,
resource materials and technical know-how to boost collections, increase the tax base, and
reinforce prudence in expenditure management. Over the long-term, this will redound to the
benefit of the government and the general public as it allows LGUs to effectively meet local
needs and priorities. However, much more work remains to be done.
In this context, we count on local treasurers to diligently use the LTOM and be more
efficient, progressive-minded, honest, transparent, accountable, and risk-averse, but willing to
take daring and bold decisions, to ensure good fiscal governance.
Local treasurers should build on and expand the progress the government has already
made and help address the remaining challenges to bring about real change. After all, only
against this backdrop can we effectively help the country leapfrog towards a more sustainable
and inclusive development path.
ANTONETTE C. TIONKO
Undersecretary Revenue
Operations Group
iv

8th Floor EDPC Building, BSP Complex, Roxas Boulevard, 1004 Manila
MESSAGE
Let me first congratulate the people behind the development and publication of the
Local Treasury Operations Manual (LTOM), 2nd Edition, for their tireless work and invaluable
dedication to update the basic reference for all local treasurers.
The Bureau of Local Government Finance (BLGF) remains committed to undertake
innovations and programs that continuously improve local finance to make it viable and
dynamic, and therefore help empower local governments as critical partners in attaining our goal
of sustainable and inclusive economic growth and development.
More than a decade since our first publication of the LTOM, much has changed with the
enactment of new laws, recent jurisprudence, and related rules and regulations of oversight
agencies that affect local treasury functions. As such, this LTOM, 2 nd Edition, provides a four-
volume reference capturing the latest policy developments, legal references, practical
illustrations, organizational improvements, and standard forms concerning local tax
administration, revenue generation, tax information system management, custody and
disbursement of funds, expenditure management, election- related responsibilities, internal
controls and related fiduciary functions.
The issuance of this LTOM is very timely to support our vision to professionalize the
local treasury service under the Standardized Examination and Assessment for Local Treasury
Service Program of the Department of Finance and the BLGF, in partnership with the Civil
Service Commission. At the heart of this program lies the need to have a reliable, updated,
complete, and instructive resource to improve the knowledge, skills, competencies and work-
ethic in local treasury work and to be successful local fiscal advisers and managers.
As local fiscal landscapes continuously evolve in pursuit of meaningful decentralization,
may this Manual be an effective instrument to help transform the quality of local treasury work
as an important dimension of a modern, responsive and inclusive local public financial
management system, on which the public can repose greater trust and confidence.
NIÑO RAYMOND B. ALVINA

Executive Director

Manila 1004
DEPARTMENT ORDER NO.
Local Treasury Operations Manual (LTOM), 2nd Edition
1. LEGAL BASES. This Department Order is issued to promulgate the Local Treasury Operations
Manual (LTOM), 2nd Edition, pursuant to Article 456 of the Implementing Rules and Regulations
(IRR) of Republic Act (RA) No. 7160, otherwise known as the Local Government Code (LGC) of
1991, and in line with the mandates of the Department of Finance (DOF) to supervise the revenue
operations of all local government units, under Executive Order (EO) No. 292, s. 1987, and of the
Bureau of local Government Finance (BLGF) to exercise administrative and technical supervision,
and coordination over treasury and assessment operations of local governments, under EO No. 127,
s. 1987.
2. COVERAGE. The LTOM, 2nd Edition, consists of four (4) books, which form integral parts
hereof, as follows:
Book I Fiscal Organization of Local Governments and the Local Treasury Office;
Book II Receipt and Collection of Income, Revenues and Other Fund Sources;
Book III Fund Management Practices, Expenditures and Disbursement; and
Book IV Detailed Procedures on the Administration and Collection of Real Property

Tax, Business Tax, Fees and Charges and Other Fund Sources.
3. LIMITATIONS. The provisions contained in the LTOM, 2nd Edition, are adoption of pertinent
provisions of relevant laws, jurisprudence, regulations, policies, issuances, opinions and rulings
affecting local finance and treasury operations. The applicable portions of related provisions from
various laws and issuances have been adopted into sections and/or discussions of specific topics in
the LTOM, and structured accordingly to cover the different aspects of local treasury operations.
Users of the LTOM, 2nd Edition, are encouraged to further refer to the LGC and its IRR, the
Government Accounting and Auditing Manual, and the Manual on the New Government
Accounting System for LGUs, both of the Commission on Audit, the Budget Operations Manual
for LGUs of the Department of Budget and Management, cited jurisprudence, and other pertinent
issuances of DOF and BLGF on local finance and treasury operations.
4. SEPARABILITY CLAUSE. Any portion or provision of the LTOM, 2nd Edition, that may be
declared unconstitutional or invalid shall not have the effect of nullifying other portions and
provisions thereof as long, as such remaining portion or provision can still subsist and be given
effect in its entirety.
vi

5. REPEALING CLAUSE. This Order supersedes Department Order No. 10-08 dated 26 March
2008, and all Department issuances relative to the LTOM that are inconsistent herewith. However,
the LTOM, 2nd Edition, does not seek to supersede the issuances and rulings of other oversight
agencies, but only reiterates and amplifies their respective applications in local treasury
operations.
6. EFFECTIVITY. This Order shall take effect fifteen (15) days after its publication in the Official
Gazette and the University of the Philippines Office of the National Administrative Register
(ONAR) or in a newspaper of general circulation in the Philippines.
All BLGF Central and Regional Offices, and all local treasurers and assistant local treasurers are
hereby directed to properly, efficiently and strictly implement the LTOM, 2nd Edition.
CARLOS G. DOMINGUEZ
Secretary
vii

OVERVIEW
LOCAL TREASURY OPERATIONS MANUAL

A. INTRODUCTION
This LTOM, 2nd Edition, is a compendium of the latest laws, policies, rules and regulations
of the government that affect the local finance and treasury operations of local government
units (LGUs). It is a vital reference material for local treasurers, which is designed to be
dynamic and responsive to the changing policy landscape and evolving local public financial
management that affect local treasury operations.
This publication was developed in consultation with local treasurers and key stakeholders,
after various dialogues, meetings, exposure workshop, focus group discussions and
management review, together with selected provincial, city and municipal treasurers
forming the Technical Working Group.
1. Title. This Manual shall be known as the Local Treasury Operations Manual
(LTOM), 2nd Edition, also herein referred to as the LTOM, 2nd Edition.
2. Background. Prior to this publication, the first edition of the LTOM was issued by the
Secretary of Finance under Department Order No.10-08, dated 26 March 2008, pursuant
to Article 456 of the Implementing Rules and Regulations (IRR) of the Local
Government Code (LGC) of 1991. The LTOM has since been designed to serve as a
handy reference material for all provincial, city and municipal treasurers in discharging
their mandated functions. Since then, the LTOM has been a regular reference of local
treasury offices in their day-to-day operations.
B.RATIONALE
In recent years, the DOF, through the BLGF, perceived the need to update, improve and
enhance the first edition of the LTOM to be continuously relevant and attuned to recent
laws, jurisprudence, and policies, rules and regulations issued by oversight agencies, and to
be published in a user-friendly and easy to carry form.
Developments over the past decade concerning local finance render some provisions of the
first LTOM obsolete and irrelevant to local treasury offices, and there were cases or
complaints wherein local treasurers and other officials unknowingly follow superseded
provisions. Thus, this LTOM, 2nd Edition, adopted measures to address these issues and
concerns, and strategically changed the content groupings and packaging into a four-volume
manual to make it more functional for local treasurers and other stakeholders.
1. Major Changes in Fiscal Organization since the LTOM was Issued. The
LTOM is guided by the LGC, which consolidated and adopted the various provisions
of different laws expanding the fiscal decentralization and autonomy of local
governments. These include Presidential Decree (PD) No. 231, as amended by PD No.
426, PD No. 464 and PD No. 477, which sought to improve the fiscal operations and
organization of LGUs.
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LTOM, 2ND EDITION
However, there are laws amending certain provisions of the LGC, as well as other laws
providing for changes in the fiscal operations of LGUs, that have been issued after 2008.
All these pertinent laws and policies are included in this LTOM and summarized in
Annex 1 hereof.
2. Relationship of the LTOM to Existing Laws, Issuances and

Pronouncements of Other Fiscal and Regulatory Agencies. The LTOM, 2nd
Edition, is primarily based on the provisions of the LGC and its IRR, and relevant
jurisprudence, particularly those that apply to LGU financial operations and fiscal
management.
This Manual also draws heavily from the Government Accounting and Auditing Manual
(GAAM) and the New Government Accounting System for LGUs (NGAS- LGU) of the
Commission on Audit (COA); the Budget Operations Manual (BOM) of the Department
of Budget and Management (DBM); opinions/ rulings and issuances of the DOF and the
BLGF; policies, regulations and opinions/rulings/ decisions of various bodies or
agencies and authorities concerned with local fiscal management and operations, such as
DOF, COA, DBM, National Economic and Development Authority (NEDA), and other
authoritative expert references.
Consequently, this Manual provides discussions, illustrations, forms and prescribed
courses of action to supplement existing guidelines and regulations of the DOF and the
BLGF. This Manual, however, does not seek to supersede issuances and rulings of other
competent authorities, but rather aim to reiterate and amplify their respective
implementation.
C.OBJECTIVES OF THIS MANUAL

The objectives of this Manual are as follows:
1. To provide Local Treasurers with an updated reference material that will guide them
in discharging their duties and functions under the decentralized framework and
environment of the LGC;
2. To equip Local Treasurers with necessary information to develop their own
capabilities to respond to the demands of their roles within the LGU and fiscal
management structures;
3. To enable Local Treasurers to fully appreciate their powers, functions, and
authorities, and to relate these constructively with those of other officers concerned
with fiscal functions;
4. To raise awareness of Local Treasurers on the basic concepts and tools of the non-
traditional functions of LGUs that they may be involved in, whether as principals or
as advisers; and
5. To serve as a guide to Local Treasurers and other fiscal officers in the management
of the LGU’s financial affairs conforming to prescribed good governance
practices and internal control measures for improved accountability and
transparency.
ix
OVERVIEW
D. BRIEF DESCRIPTION OF THIS MANUAL

This publication consists of four (4) books forming integral parts of the LTOM, 2 nd Edition,
which are printed and packaged individually for easy reference. Each book contains
important information and annexes, and is intended to be used as a stand- alone reference on
local treasury operations.
Some provisions contained in the Manual are closely paraphrased, if not quoted verbatim,
from the relevant text of the laws, jurisprudence, regulations, policies, issuances, opinions,
rulings and decisions. Valid portions of various laws and issuances were recast into a single
provision, and parts of a single provision that apply to the different aspects of treasury
operations are reflected separately in the appropriate topics.
The sources of particular sections or topics in this Manual are reflected in the text itself, or
set in parenthesis, to enable users to refer to the original provision if desired. Likewise, the
location of provisions alluded to in another chapter or section are indicated in the respective
portions.
For more detailed reading and information, users of this Manual are encouraged to refer to
the LGC and its IRR, the GAAM, the NGAS-LGU, the BOM and the myriad of compilation
of rulings, issuances and circulars of concerned oversight agencieis.

LTOM, 2ND EDITION
BOOK I
Fiscal Organization of Local Governments
and the Local Treasury Office
xi
TABLE OF CONTENTS
TABLE OF CONTENTS
ACRONYMS xv
CHAPTER 1 1
FISCAL ORGANIZATION OF LOCAL GOVERNMENTS
Section 1. Legal Framework 1
Section 2. Creation, Division, Merger, Abolition 3
and Conversion of LGUs
Section 3. The Provincial/City/Municipal Treasury Office 7
Section 4. Organizational Structures:
Models for the Local Treasury Office 8
CHAPTER 2 18
THE LOCAL TREASURER
AND THE ASSISTANT LOCAL TREASURER
Section 5. Authority of the Secretary of Finance to Appoint Local 18
Treasurer and Assistant Local Treasurer
Section 6. Authority of the LCE over the Local Treasurer 19
and Assistant Local Treasurer
Section 7. Qualifications of Local Treasurer 20
Section 8. Processing of the Appointments of Provincial, City, 20
and Municipal Treasurers and Assistant Provincial, City, and
Municipal Treasurers
Section 9. Designation of Acting/Officer-In-Charge (OIC)/In-Charge 26
of Office (ICO) Provincial/City/Municipal Treasurers
and Assistant Treasurers
Section 10. Automatic Succession of the Assistant Provincial/City/ 32
Municipal Treasurer
Section 11. Designation in the Absence of an Assistant Local Treasurer 32
Section 12. Relief or Detail of Local Treasurers 32
and Assistant Local Treasurers
Section 13. Other Personnel Actions for Local Treasurers 35
Section 14. Preventive Suspension of Local Treasurers 43
Section 15. Attendance to Administrative, Civil or Criminal Investigation 46
of Local Treasurers and Assistant Local Treasurers
Section 16. Approval and Grant of Application for Leave of Absence 47
of Local Treasurers and Assistant Local Treasurers
Section 17. Authority to Travel Abroad and Participate 50
in Training Programs
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LTOM, 2ND EDITION
CHAPTER 3 52
ADMINISTRATIVE AND TECHNICAL SUPERVISION
Section 18. Scope and Nature 52
A. Administrative and Technical Supervision by the BLGF 52
B. Technical Supervision by Provincial Treasurer 53
Over Municipal and Component City Treasurers
Section 19. Fiscal Performance Evaluation of LGUs and Local Treasurers 54
A. Conduct of Local Treasury Operations Evaluation 54
B. LGU Financial Sustainability Score Cards (LGUFSS) 54
C. Performance Standards for Local Treasurers 55
Section 20. Turn-Over of Accountabilities to the Incoming 56
and Out-going Local Treasurers
CHAPTER 4 60
ROLES, DUTIES, AND RESPONSIBILITIES
OF THE LOCAL TREASURER
Section 21. Powers and Duties of Local Treasurer 60
Section 22. The Local Treasurer’s Role in Boards and Committees 67
Created Pursuant to the LGC and Other Laws
Section 23. Treasurer’s Role in National and Local Elections 70
Pursuant to the Omnibus Election Code
CHAPTER 5 71
BONDING OF LOCAL TREASURERS
AND OTHER LGU ACCOUNTABLE OFFICERS
Section 24. Legal Basis for the Bonding of Local Treasurers 71
and Other LGU Accountable Officers
Section 25. Guidelines on Bonding of Local Treasurers 71
and Accountable Officers
Section 26. Schedule of Cash Accountability 73
and the Corresponding Bonds
Section 27. Renewal 74
Section 28. Increase in the Amount of Accountability 75
Section 29. Accountable Officers Considered Unsafe Risks 75
Section 30. Cancellation of Bond 76
Section 31. Effect of Cancellation 76
Section 32. The Fidelity Fund 76
Section 33. Extent of Liability 76
Section 34. Validity of Fidelity Bonds. 77
Section 35. Adjudication and Payment of Claims against the Fidelity Fund 77
xiii

TABLE OF CONTENTS
FORMS AND ANNEXES 80

Annex 1 List of Laws that Shaped Fiscal Decentralization in 81
the Philippines
Annex 2 DOF Department Order No. 031.2018 - Guidelines on the 119
Computation and Certification of Income for the Creation, Conversion,
Merger or Abolition of a Local Government Unit (LGU)
Annex 3 DOF Department Personnel Order No. 477-2019 124
- Guidelines on the Evaluation and Processing of Appointments of
Local Treasurers and Assistant Local Treasurers
Annex 4 BLGF Memorandum Circular No. 025-2019 - Guidelines on the 131
Evaluation and Processing of Appointments of Local Treasurers and
Assistant Local Treasurers
Annex 5 DOF Department Special Order No. 01-2018 - Updated Code of 145
Approving and Signing Authorities (CASA) of the Bureau of
Local Government Finance (BLGF)
Annex 6 BLGF Memorandum Circular No. 16-2015 - Local Public 149
Financial Management Tools for the Electronic Statement of
Receipts and Expenditures
Annex 7 DOF Department Order No. 075.2018 - Establishing the Local 151
Government Unit (LGU) Fiscal Sustainability Scorecard (FSS) in
the Bureau of Local Government Finance (BLGF)
Annex 8 DOF Department Order No. 006.2015 - Performance Standards for 171
Local Treasurers and Assistant Treasurers
xiv

LTOM, 2ND EDITION
ACRONYMS
AGDB Authorized Government Depository Bank
AOM Audit Observation Memorandum
ASPP Annual Supplies Procurement Plan
ATAP Authority to Accept Payment
BARMM Bangsamoro Autonomous Region in Muslim Mindanao
BAC Bids and Awards Committee
BIR Bureau of Internal Revenue
BLGF Bureau of Local Government Finance
BMBE Barangay Micro Business Enterprises
BTr Bureau of the Treasury
CESB Career Executive Service Board
COA Commission on Audit
COMELEC Commission on Elections
CRAAF Consolidated Report of Accountability for
Accountable Forms
CSC Civil Service Commission
CTOO Chief Treasury Operations Officer
DILG Department of Interior and Local Government
DBM Department of Budget and Management
DepEd Department of Education
DOF Department of Finance
DO/PO District/Provincial Office
DOST Department of Science and Technology
EU PFM 2 European Union’s Public Financial Management 2
eSRE electronic Statement of Receipts and Expenditures
GAAM Government Accounting and Auditing Manual
GAD Gender and Development Fund
GF General Fund
GOCC Government Owned and Controlled Corporation
GSIS Government Service Insurance System
HUC Highly Urbanized City
HoA Head of the Agency
ICO In-Charge of Office
IPCR Individual Performance Commitment and Review
IRA Internal Revenue Allotment
IRR Implementing Rules and Regulations
JMC Joint Memorandum Circular
LCE Local Chief Executive
LDRRMF Local Disaster Risk Reduction and Management Fund
LFC Local Finance Committee
LGC Local Government Code
LGU Local Government Unit
LMB Land Management Bureau
LTO Local Treasury Operations
MC Memorandum Circular
MMA Metro Manila Area
xv
ACRONYMS
MMDA Metro Manila Development Authority

MOOE Maintenance and Other Operating Expenses
MTO Municipal Treasurer’s Office
NAPOLCOM National Police Commission
NCR National Capital Region
NEDA National Economic and Development Authority
NGAS New Government Accounting System
NSO National Statistics Office
OIC Officer-In-Charge
OPCR Office Performance Commitment and Review
PBL Public Bonding Law
PCW Philippine Commission on Women
PDS Personal Data Sheet
PNB Philippine National Bank
PPMP Project Procurement Management Plan
PRC Professional Regulation Commission
PS Personal Services
PSA Philippine Statistics Authority
PTO Provincial Treasurer’s Office
RAAF Report of Accountability for Accountable Forms
RATA Representation and Transportation Allowance
RCI Report of Checks Issued
RPT Real Property Tax
RRACCS Revised Rules on Administrative Cases in the Civil
Service
SALN Statement of Assets, Liabilities and Net Worth
SAM State Audit Manual
SC Supreme Court of the Philippines
SEAL Standardized Examination and Assessment for Local
Treasury Service Program
SEF Special Education Fund
SPL Special Privilege Leave
SPMS Strategic Performance Management System
SRE Statement of Receipts and Expenditures
SUC State Universities and Colleges
TCT Transfer Certificates of Title
TDS Tax Declarations
TOP Treasurer of the Philippines
UBOM Updated Budget Operations Manual
xvi

LTOM, 2ND EDITION
INTRODUCTION
LTOM Book I describes the key features of the local government unit’s fiscal organization
and responsibilities, including the present requirements for the creation of local
governments, pursuant to existing laws.
Likewise, Book I discusses the policies and guidelines on the appointment and designation
of local treasurers and assistant local treasurers, their general and specific roles, duties and
responsibilities, as well as the scope and extent of administrative and technical supervision
over local treasury operations of LGUs.
LTOM Book I consists of five (5) Chapters, including Annexes, as follows:
Chapter 1 Fiscal Organization of Local Government Units (LGUs)
Chapter 2 The Local Treasurer and the Assistant Local Treasurer
Chapter 3 Administrative and Technical Supervision by the BLGF
Chapter 4 Roles, Duties and Responsibilities of the Local Treasurer
Chapter 5 Bonding of Local Treasurers and Other LGU Accountable Officers
xvii

CHAPTER
FISCAL ORGANIZATION OF LOCAL GOVERNMENT
1 UNITS (LGUS)
SECTION 1. LEGAL FRAMEWORK

A. The State shall ensure the autonomy of local governments. (Article II, Sec. 4, 1987 Phil.
Constitution)
B. 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.
(Article X, Sec. 4, 1987 Phil. Constitution)
Each LGU shall have the power to create its own sources of 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 taxes, fees, and
charges shall accrue exclusively to the local governments. (Article X, Sec. 5, 1987 Phil.
Constitution)
LGUs shall have a just share, as determined by law, in the national taxes which shall be
automatically released to them. (Article X, Sec. 6, 1987 Phil. Constitution)
C. LGUs shall have the power and authority to establish an organization that shall be
responsible for the efficient and effective implementation of their development plans,
program objectives and priorities; to create their own sources of revenues and to levy
taxes, fees, and charges which shall accrue exclusively for their use and disposition and
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 an
equitable share in the proceeds from the utilization and development of the national
wealth and resources within their respective territorial jurisdictions including sharing the
same with the inhabitants by way of direct benefits; to acquire, develop, lease,
encumber, alienate, or otherwise dispose of real or personal property held by them in
their proprietary capacity and to apply their resources and assets for productive,
developmental, or welfare purposes, in the exercise or furtherance of their
governmental or proprietary powers and functions and thereby ensure their development
into self-reliant communities and active participants in the attainment of national goals.
(Sec. 18, LGC)
D. Local governments shall be entitled to an equitable share in the proceeds of the
utilization and development of the national wealth within their respective areas, in the
manner provided by law, including sharing the same with the inhabitants by way of
direct benefits. (Art. X, Sec. 7,1987 Phil. Constitution) Every LGU created or
recognized under the LGC is a body politic and corporate endowed with powers to be
exercised by it in conformity with law. 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)
E. When a new LGU is created, its corporate existence shall commence upon the

LTOM, 2ND EDITION
election and qualification of its chief executive and a majority of the members of its
sanggunian, unless some other time is fixed therefor by the law or ordinance creating it.
(Sec.14, LGC)
F. Every LGU, as a corporation, shall have the following powers:
1. To have continuous succession in its corporate name;
2. To sue and be sued;
3. To have and use a corporate seal;
4. To acquire and convey real or personal property;
5. To enter into contracts; and
6. To exercise such other powers as are granted to corporations, subject to the
limitations provided in the LGC and other laws. [Sec. 22 (a), LGC]
G. LGUs shall enjoy full autonomy in the exercise of their proprietary functions and in the
management of their economic enterprises, subject to the limitations provided in the
LGC and other applicable laws. [Sec. 22 (d), LGC]
H. Every LGU shall exercise the powers expressly granted and those necessarily implied
therefrom, as well as powers necessary, appropriate, or incidental for its efficient and
effective governance, and those which are essential to the promotion of the general
welfare. Within their respective territorial jurisdictions, LGUs shall ensure and support,
among other things, the preservation and enrichment of culture, promote health and
safety, enhance the right of the people to a balanced ecology, encourage and support the
development of appropriate and self-reliant scientific and technological capabilities,
improve public morals, enhance economic prosperity and social justice, promote full
employment among their residents, maintain peace and order, and preserve the comfort
and convenience of their inhabitants. (Sec. 16, LGC)
I. The financial affairs, transactions, and operations of LGUs shall be governed by
the following fundamental principles and policies, to wit:
1. No money shall be paid out of the local treasury except in pursuance of an
appropriations ordinance or law [Sec. 305 (a), LGC];
2. Local government funds and monies shall be spent solely for public purposes
[Sec. 305 (b), LGC];
3. Local revenue is generated only from sources expressly authorized by law or
ordinance, and collection thereof shall at all times be acknowledged properly [Sec.
305 (c), LGC];
4. All monies officially received by a local government officer in any capacity or on
any occasion shall be accounted for as local funds, unless otherwise provided by
law [Sec. 305 (d), LGC]; and
5. Provinces, cities and municipalities shall maintain a General Fund which shall be
used to account for such monies and resources as may be received

FISCAL ORGANIZATION OF LOCAL GOVERNMENT UNITS (LGUS)
by and 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
expenditures, obligations or purposes not specifically declared by law as accruing
and chargeable to, or payable from, any other fund. (Sec. 308, LGC)
SECTION 2. CREATION, DIVISION, MERGER, ABOLITION

AND CONVERSION OF LGUs
An LGU may be created, divided, merged, abolished, or its boundaries substantially altered
either by law enacted by Congress in the case of a province, city, municipality, or any other
political subdivision, or by ordinance passed by the sangguniang panlalawigan or
sangguniang panlungsod concerned in the case of a barangay located within its territorial
jurisdiction, subject to such limitations and requirements prescribed in the LGC. (Sec. 6,
LGC)
A. Common Requirements for Creation and Conversion of an LGU:
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 capacity to provide services, to wit:
Indicators
It must be sufficient, based on acceptable standards, to provide for all

essential government facilities and services and special functions
Income
commensurate with the size of its population, as expected of the LGU
concerned.
It shall be determined on the total number of inhabitants within the
Population
territorial jurisdiction of the LGU concerned.
It must be contiguous, unless it comprises two or more islands or is
separated by a LGU independent of the others; properly identified by
Land Area metes and bounds with technical descriptions; and sufficient to provide
for such basic services and facilities to meet the requirements of its
populace.
2. Compliance with income, population and land area shall be attested to by the DOF,
the National Statistics Office (NSO), now known as the Philippine Statistics
Authority (PSA), and the Land Management Bureau (LMB), respectively. (Sec. 7,
LGC)
3. The creation of a province, city or municipality shall not reduce the land area,
population, and income of the original unit or units at the time of said creation to
less than the minimum requirements prescribed by law.
4. Also, no creation, division, merger, abolition, or substantial alteration of
boundaries of LGUs shall take effect unless approved by a majority of the votes
cast in a plebiscite called for the purpose in the political unit or units directly
affected. Said plebiscite shall be conducted by the Commission on

LTOM, 2ND EDITION
Elections (COMELEC) within one hundred twenty (120) days from the date of
effectivity of the law or ordinance effecting such action, unless said law or
ordinance fixes another date. (Sec. 10, LGC)
B. Requirements for the Creation of Local Governments - Local government
units may be created in accordance with the criteria provided for in the LGC,
summarized as follows:
Coverage/ Requisites for Creation Legal

LGU
Jurisdiction Income1 Population Land Area Basis
Province Cluster of Average annual A population A contiguous Sec.
municipalities, income, as certified by of not less territory of at 461,
or the DOF, of not less 250,000 least 2,000 sq. LGC
municipalities than Php20,000,000.00 inhabitants as km.2 as
and component based on 1991 certified by certified by the
cities constant prices the NSO, now LMB.
(See Annex 2), known as the
and either of the PSA; or
following requisites:
City3 Municipality Locally generated A population A contiguous RA

or a cluster of average of not less territory of No.
barangays annual income, as 150,000 at least 100 sq. 9009
certified by the DOF, inhabitants, as km. as
of at least certified by certified
4
by the
Php100,000,000.00 the NSO, now LMB.
for the last two known as the
(2) consecutive PSA; or
years based on
2000 constant
prices (See
Annex 2), and if it
has either of the
following requisites:
1 The average annual income shall include the income accruing to the general fund, exclusive of special funds, trust funds,
transfers and non-recurring income.
2 The territory need not be contiguous if it comprises two (2) or more islands or is separated by a chartered city or cities which do
not contribute to the income of the province.
3 A city may either be Component or Highly Urbanized. Provided, however, that the criteria established in the LGC shall not affect
the classification and corporate status of existing cities. Independent component cities are those component cities whose
charters prohibit their voters from voting for provincial elective officials. Independent component cities shall be independent of
the province. (Sec. 451, LGC)
4 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 of one (1) or more islands. The territory need not be
contiguous if it comprises two (2) or more islands.


LGU
Jurisdiction Income Population Land Area Basis
Municipality5 A group of Average A population Contiguous Sec.
barangays annual income,as of not less territory of 442,
certified by 25,000 at least 50 LGC
the provincial inhabitants, sq. km. as
treasurer, as certified certified by the
of at least by the NSO, LMB.6
Php2,500,000.00 now known as
for the last two the PSA; and
(2) consecutive
years based on
1991 constant
prices (See
Annex 2);
Barangay7 Out of a N/A A population N/A Sec.
contiguous of at least 2,000 386,
territory inhabitants as LGC
certified by
the NSO, now
known as
PSA, except
in cities and
municipalities
within Metro
Manila and other
metropolitan
political
subdivisions
or in HUCs
where such
territory shall
have a certified
population of
at least 5,000
inhabitants.
5 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 a majority of the votes cast in the plebiscite to be conducted by the
COMELEC in the LGU/s directly affected. Except as may otherwise be provided in the said Act, the plebiscite
shall be held within one hundred twenty (120) days from the date of its effectivity. (Sec. 441, LGC)
6 The territorial jurisdiction of a newly created municipality shall be properly identified by metes and bounds. The
requirement on land area shall not apply where the municipality proposed to be created is composed of one (1)
or more islands. The territory need not be contiguous if it comprises two (2) or more islands. (Sec. 442, LGC)
7 Creation of a Barangay
i. To enhance the delivery of the basic services in the indigenous cultural communities, barangays may be
created in such communities by an Act of Congress, notwithstanding the aforementioned requirement.
ii. The territorial jurisdiction of the new barangay shall be properly identified by metes and bounds or by more
or less permanent natural boundaries. The territory need not be contiguous if it comprises two (2) or more
islands.
iii. The governor or city mayor may prepare a consolidation plan for barangay, based on the foregoing criteria,
within his territorial jurisdiction. The plan shall be submitted to the sangguniang panlalawigan or
sangguniang panlungsod concerned for appropriate action.
iv. In the case of municipalities within the Metropolitan Manila area and other metropolitan political subdivisions,
the barangay consolidation plan shall be prepared and approved by the Sangguniang Bayan concerned.
(Sec. 386, LGC)

LTOM, 2ND EDITION

LGU
Jurisdiction Income Population Land Area Basis
Highly Cities Latest annual Minimum population N/A Sec.
Urbanized income of at least of 200,000 452,
Cities Php50,000,000.00, inhabitants, LGC
(HUC)8 based on 1991 as certified by the
constant prices,as NSO, now known as
certified by the City the PSA.
Treasurer (See
Annex 2); and
C. Requirements for the Merger/Consolidation or Abolition of LGUs

1. Division and merger of existing LGUs shall comply with the same requirements
herein prescribed for their creation: provided, however, that such division shall not
reduce the income, population, or land area of the LGU/s concerned to less than
the minimum requirements prescribed in the LGC: provided, further, that the
income classification of the original LGU/s shall not fall below its current
classification prior to such division. (Sec. 8, 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 Book III of 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 or ordinance abolishing an LGU shall specify the province, city, municipality,
or barangay with which the LGU sought to be abolished will be incorporated or
merged. (Sec. 9, LGC)
D. Creation, Division, Merger or Alteration of Boundaries of Municipalities
or Barangays in the Bangsamoro Autonomous Region pursuant to RA
No. 11504 or An Act Providing for the Organic Law for the Bangsamoro
Autonomous Region in Muslim Mindanao (BARMM)
1. The Bangsamoro Autonomous Region is an integral, indivisible, and inseparable
part of the territory of the Republic of the Philippines. The Bangsamoro people
shall uphold the Constitution as the fundamental law of the land and unequivocally
owe allegiance and fidelity to the Republic of the Philippines. (Art. IV, Sec. 1, RA
No. 11504)
8 Highly Urbanized Cities (HUC):
i. Cities which do not meet the above requirements shall be considered component cities of the province in
which they are geographically located. If a component city is located within the boundaries of two (2) or
more provinces, such city shall be considered a component of the province of which it used to be a
municipality. Qualified voters of highly urbanized cities shall remain excluded from voting for elective
provincial officials. [Sec. 452 (b)(c), LGC]
ii. Unless otherwise provided in the Constitution or the LGC, qualified voters of independent component cities
shall be governed by their respective charters, as amended, on the participation of voters in provincial
elections. Qualified voters of cities who acquired the right to vote for elective provincial officials prior to the
classification of said cities as highly urbanized after the ratification of the Constitution and before the
effectivity of the LGC, shall continue to exercise such right. (Sec. 452, LGC)
iii. It shall be the duty of the President to declare a city as highly urbanized after it shall have met the minimum
requirements prescribed, upon proper application therefor and ratification in a plebiscite by the qualified
voters therein. (Sec. 453, LGC)

2. In the exercise of its right to self-governance, the Bangsamoro Autonomous

Region is free to pursue its political, economic, social and cultural development as
provided for in the Organic Law. (Art. IV, Sec. 2, RA No. 11504)
3. The authority of the Bangsamoro Government to regulate the affairs of its
constituent local government units shall be guaranteed in accordance with the
Organic Law and a Bangsamoro local government code to be enacted by the
Parliament. The privileges already enjoyed by local government units under
Republic Act No. 7160, otherwise known as the “Local Government Code of
1991,” as amended, and other existing laws shall not be diminished.
The Parliament may create, divide, merge, abolish, or substantially alter
boundaries of municipalities or barangays in accordance with a law enacted by the
Parliament. The municipalities or barangays created, divided, merged, or whose
boundaries are substantially altered, shall be entitled to their appropriate share in
the national taxes or Internal Revenue Allotment: Provided, That the criteria laid
down in Republic Act No. 7160, as amended, and other national laws shall be
satisfied: Provided, further, That it shall be approved by a majority of the votes
cast in a plebiscite in the political units directly affected.
When such acts require the creation of a legislative district, the Bangsamoro
Government shall cooperate and coordinate with the National Government through
the Philippine Congress-Bangsamoro Parliament Forum to prioritize the
deliberations on the creation of a legislative district.
Nothing in the Organic Law shall be construed to allow the Bangsamoro
Government to create legislative districts.
(Art. Vl, Sec. 10, RA No. 11504)
4. The powers of government shall be vested in the Parliament which shall exercise
those powers and functions expressly granted to it by the Organic Law, and those
necessary for, or incidental to, the proper governance and development of the
Bangsamoro Autonomous Region. (Art. Vll, Sec. 2, RA No. 11504)
SECTION 3. THE PROVINCIAL/CITY/MUNICIPAL TREASURY OFFICE

A. Pursuant to the provisions of the LGC, there shall be a municipal, city and provincial
treasurer, as among the officials mandated to respectively govern each of the municipal,
city and provincial governments. [Sec. 443(a), 454(a), 463(a), LGC]
B. Pursuant to Sec. 470 (d) of the LGC, the treasurer shall take charge of the treasury office,
perform the duties provided for under Book II of the LGC, among other powers and
duties mentioned in Chapter 4 of this manual.
C. The provisions under Book II of the LGC shall govern the exercise by provinces, cities,
municipalities, and barangays of their taxing and other revenue-raising powers. (Sec.
128 to 383, LGC)

LTOM, 2ND EDITION
SECTION 4. ORGANIZATIONAL STRUCTURES:

MODELS FOR THE LOCAL TREASURY OFFICE
A. The Local Treasury Office, as the core administrator of LGU funds and finances, shall
adopt appropriate and responsive organizational structure that takes into consideration
the major divisions or functional units of the office that respond to the goals of the LGU
and for the provision of efficient and quality services to its constituency and key
stakeholders.
Models of efficient and desirable organizational setup and structure of Provincial
Treasury Office (PTO), City Treasury Office (CTO) and Municipal Treasury Office
(MTO), according to specific considerations, are presented below.
B. The Local Treasury Office is also encouraged to create an Information Technology

(IT) Unit or IT plantilla positions to perform the following functions:
1. Handle the security and maintenance of digitized real property tax records of the
local treasury office and assist in the posting of related tax information campaign
materials;
2. Handle the maintenance and updating of systems applications and information
technology requirements of the local treasury office and provide recommendations;
3. Prepare and submit reports as may be required by the BLGF;
4. Provide troubleshooting services in the local treasury office; and

5. Perform other related functions that may be assigned.
C. For the PTO, the following basic functional units/divisions are directly under the
Provincial Treasurer and may be assisted by an Assistant Provincial Treasurer, or two
Assistant Provincial Treasuers (one for Operations, and the other for Administration).
The Local Treasurers of component municipalities and cities are under the technical
supervision of the PTO. The functions of the divisions under the PTO are provided
below:
1. Administrative Division
a. Ensure that all national and local circulars, memoranda and guidelines
concerning local treasury operations are received, disseminated and acted
upon/complied with;
b. Maintain records of all communications and documents pertaining to local
treasury operations;
c. Prepare Office Performance Commitment and Review (OPCR) and ensure
submission of the Individual Performance Commitment and Review (IPCR)
of personnel, compliant to the approved Strategic Performance Management
System (SPMS) of the LGU;
8

d. Maintain records of all pertinent information of PTO personnel (i.e., PDS,

SALN, Leave Credits);
e. Ensure the observance of R A No. 6713 or the “Code of Conduct and
Ethical Standards for Public Officials and Employees,” and recommend
disciplinary action when appropriate;
f. Ensure that all accountable officers are properly bonded pursuant to
the provisions of the Public Bonding Law (PBL);
g. Draft reply/memo circulars pertaining to treasury matters;
h. Conduct annual physical inventory of the following: unused accountable
forms; office supplies; property, plant and equipment; Transfer Certificates
of Title (TCTs)/Tax Declarations (TDs) of government- owned properties
and pertinent documents to support ownership; and ensure that all buildings,
property and equipment are insured annually;
i. Prepare monthly report of accountable forms;
j. Prepare and submit reports as may be required by the BLGF;
k. Perform other duties and functions that may be assigned.
2. Treasury Operations and Review Division

a. Assist in the conduct of public auction of delinquent real properties;
b. Recommend strategies and revenue measures to increase collection;
c. Assist the Provincial Treasurer in preparing proposed revenue ordinances;
d. Prepare reports regarding collections on a regular basis;
e. Prepare the annual estimated revenue of the province before July 15th of
each year;
f. Prepare Budget Proposals of the PTO, including the Project Procurement
Management Plan (PPMP), Annual Supplies Procurement Plan (ASPP), and
other related reports;
g. Prepare and submit reports as may be required by the BLGF; and
h. Perform other duties and functions that may be assigned.
3. Cash Division
a. Disburse obligations, such as salaries and wages, allowances and
honorarium;
b. Prepare checks for disbursement of various obligations of the Province;

LTOM, 2ND EDITION
c. Receive daily collections including payments on real property tax paid by

property owners, to the provincial treasurer of the province to which the
municipality where the subject property is located;
d. Prepare daily consolidated report of collections and deposits and attach
the list of checks for deposit;
e. Deposit daily to authorized government depository banks (AGDBs) all
collections received from collectors or remitted by different collecting
offices;
f. Remit national and municipal shares;
g. Prepare daily report of checks issued (RCI);
h. Update cash books daily and prepare daily Cash Position Report;
i. Prepare daily, weekly or monthly report of collections;
j. Prepare and submit electronic Statement of Receipts and Expenditures

(eSRE) quarterly reports and other reports required by the BLGF;
k. Consolidate the eSRE quarterly reports of its component municipalities; and
l. Perform other duties and functions that may be assigned.
4. Local Economic Enterprise Division. As may be necessary; refer to

functions of this division under the CTO.
Figure 1. Organizational Structure of the Provincial Treasury Office
PROVINCIAL TREASURER
Assistant Provincial Assistant Provincial

Treasurer Treasurer
(Operations) (Administration)
Local Economic
Administrative Treasury Operations Cash
Enterprise
Division and Review Division Division
Division
10

D. The City Treasury Office (CTO), on the other hand, is viewed to be more complex in
structure than that of the PTO. It has at least five major functional divisions, each of
which may be divided into sections; provided, that it is in accordance with DBM and
CSC rules and regulations.
All the functional divisions of the CTO are directly under the supervision of the City
Treasurer and may be assisted by one or two Assistant City Treasurers. The functions of
the divisions under the PTO are provided below:
1. Administrative Division
pertaining to treasury operations are received, disseminated and acted
upon/complied with;
b. Maintain records of all communications and documents pertaining to
c. Prepare OPCR and ensure submission of the IPCR of personnel, compliant
to the approved SPMS of the LGU;
d. Maintain records of all pertinent information of CTO personnel (i.e. PDS,
e. Ensure the observance of RA No. 6713 or the “Code of Conduct and Ethical
Standards for Public Officials and Employees,” and recommend disciplinary
action, when appropriate;
the provisions of the PBL;
forms; office supplies; property, plant and equipment; TCTs/TDs of
government-owned properties and pertinent documents to support
ownership; and ensure that all buildings, property and equipment are insured
annually;
i. Prepare Budget Proposals of the CTO, including the PPMP, ASPP and other
related reports;
j. Prepare Estimated Revenue for submission before July 15th of each year;
k. Issue accountable forms to accountable officers and prepare monthly
reports pertaining thereto;
l. Prepare and submit reports as may be required by the BLGF; and
m. Perform other duties and functions that may be assigned.
11

LTOM, 2ND EDITION
2. Cash Division. For clearer delineation of functions of personnel in the Cash

Division, it may be subdivided into two sections: (i) Cash Receipts Section, and
(ii) Cash Disbursement Section.
a. Receive daily collections from all collection officers of the LGU;
b. Prepare the daily consolidated report of collections and deposits and attach
c. Deposit daily cash and check collections to AGDBs;
d. Prepare daily, weekly and monthly report of collections;
e. Update cash books and prepare daily cash position report;
f. Prepare monthly report of used and unused accountable forms;
g. Disburse salaries and wages, allowances and honorarium of
employees;
h. Prepare checks in payment of various obligations of the city;
i. Remit national government and barangay shares;
j. Prepare daily RCI;
k. Prepare and submit quarterly eSRE reports, and other reports required by
the BLGF; and
3. Real Property Tax Division

a. Compute and collect payments on real property tax and issue
Certificate of payments/tax clearance upon request;
b. Update records of real property tax payments and prepare list of
delinquent properties for posting and publication;
c. Send notices of delinquency to delinquent real property owners;
d. Assist in the conduct of public auction of delinquent real properties;
e. Ensure that cash books of collectors are updated daily;
f. Prepare monthly report of barangay share;
g. Prepare monthly/quarterly report of real property tax collection;
h. Recommend strategies to increase real property tax collection;
i. Prepare and submit reports as may be required by the BLGF; and
j. Perform other duties and functions that may be assigned.
12

4. Business Tax and Miscellaneous Revenue Division

a. Evaluate gross receipts of business establishments and assess the
corresponding local business taxes, fees and charges, and other duly
authorized local impositions;
b. Collect and record payments on business taxes, fees and charges, and other
taxes;
c. Issue certificate of payment upon request;
d. Prepare notice of delinquency on local business tax;
e. Inspect business establishments within the jurisdiction of the city, relative to
the implementation of approved tax ordinances, pursuant to the provisions
of the LGC;
f. Calibrate and seal all weights and measures used within the LGU
jurisdiction;
g. Receive, inspect and assess applications of retirement of business;
h. Ensure that cash books of collectors are updated daily;
i. Recommend strategies to increase collection of local business tax;
j. Prepare and submit reports as may be required by the BLGF; and
k. Perform other duties and functions that may be assigned.
5. Treasury Operations and Review Division

a. Assist in the conduct of public auction of delinquent real properties;
b. Prepare reports regarding collections on a regular basis;
c. Recommend strategies and revenue measures to increase collection;
d. Prepare the annual estimated revenue of the city before July 15 th of each
year;
e. Prepare Budget Proposals of the CTO, including the PPMP, ASPP and other
related reports;
f. Conduct Examination of Books of Accounts on Business Establishments;
g. Evaluate request on re-assessment and tax credit;
h. Assist the City Treasurer in preparing proposed revenue ordinances;
i. Prepare and submit reports as may be required by the BLGF; and
j. Perform other duties and functions that may be assigned.
13

LTOM, 2ND EDITION
6. Local Economic Enterprise Division

a. Advise the LCE and the sanggunian, regarding the establishment of
local economic enterprises, if the same is warranted, marketable, viable and
self-liquidating;
b. Ensure that setting up and operation of the local economic enterprises shall
be included in the development planning and investment programming;
c. Ensure that funding requirement for the creation of local economic
enterprise is included in the annual budget of the LGU;
d. Advise the LCE and sanggunian in the enactment of ordinances on local
economic enterprises, which should be aligned to the LGU development
goals and objectives and ensure that the same shall operate under the basic
principle of financial self-sufficiency via cost recovery;
e. Advise the LCE and sanggunian regarding the efficiency and effectiveness
of its service delivery, that the same is responsive to the needs of the
constituency and does not compete with the goods and services provided by
the private sector; and
f. Advise the LCE of delinquencies incurred by the local economic enterprise
clients/lessees for the purpose of taking the necessary remedial measures
and enforcing sanctions, if applicable.
Figure 2. Organizational Structure of the City Treasury Office
CITY TREASURER
Assistant City Assistant City

Treasurer Treasurer
(Operations) (Administration)
Real Business Treasury Local

Adminis-
Cash Property Tax and Operations Economic
trative
Division Tax Miscellaneous and Review Enterprise
Division
Division Revenue Division Division Division
14

E. For the Municipal Treasury Office (MTO), the organizational structure is simpler, with
only two (2) functional divisions, i.e., the Cash Division, and the Revenue Division,
whose functions are similar to that of the CTO’s, together with Administrative Section
to provide administrative support to the operations of the office.
1. Administrative Section
regarding treasury operations are received, disseminated and acted
upon/complied with;
b. Maintain records of all communications and pertinent documents on local
c. Prepare OPCR and ensure submission of the IPCR of personnel, compliant
with the approved SPMS of the LGU;
d. Maintain records of pertinent information of all MTO personnel (i.e. PDS,
e. Ensure the observance of RA No. 6713 or the “Code of Conduct and Ethical
Standards for Public Officials and Employees,” and recommend disciplinary
action when appropriate;
the provisions of the PBL;
forms; office supplies; property, plant and equipment; TCTs/TDs of
government-owned properties and pertinent documents to support
ownership; and ensure that all buildings, property and equipment are insured
annually;
i. Prepare Budget Proposals of the MTO, including the Procurement
Management Plan, Annual Supplies Procurement Plan and other related
reports;
j. Prepare the Estimated Revenue for submission before July 15th of each year;
k. Issue accountable forms to accountable officers;
l. Prepare monthly report of accountable forms;
m. Prepare and submit reports as may be required by the BLGF; and
n. Perform other duties and functions that may be assigned.
15

LTOM, 2ND EDITION
2. Cash Division
a. Receive daily collections from all collection officers of the LGU;
b. Prepare the daily consolidated report of collections and deposits and attach
c. Deposit daily collections of the municipality to AGDBs;
d. Prepare daily, weekly and monthly report of collections;
e. Update Cash Books and prepare daily cash position report;
f. Assist the Municipal Treasurer in handling the disbursement of local
government funds and such other funds entrusted by law or other competent
authority;
g. Disburse salaries and wages, allowances and honorarium of
employees;
h. Prepare checks in payment of various obligations of the municipality;
i. Remit national and barangay shares;
j. Prepare daily RCI;
k. Prepare and submit quarterly eSRE reports required by the BLGF; and
3. Revenue Division
a. Compute and collect payments on Real Property Tax (RPT);
b. Prepare monthly/quarterly report of RPT collection;
c. Update records of RPT payment and prepare list of delinquent
properties;
d. Send notices of delinquency to delinquent real property owners;
e. Prepare notices of delinquency on RPT for posting and publication;
f. Prepare monthly report of barangay share;
g. Evaluate gross receipts of business establishments and assess local business
taxes, fees and charges, and other duly authorized local impositions;
h. Collect and record payments on business taxes, fees and charges, and other
taxes;
i. Prepare notice of delinquency on local business tax;
16

j. Inspect business establishments within the jurisdiction of the municipality

relative to the implementation of approved tax ordinances pursuant to the
provisions of the LGC;
k. Receive, inspect and assess applications for retirement of business;
l. Calibrate and seal all weights and measures within the jurisdiction of the
LGU;
m. Issue Certificate of payments/tax clearance, upon request;
n. Ensure that cash books of collectors are updated daily;
o. Recommend strategies to increase collection on RPT, business tax and other
revenues;
p. Prepare and submit reports as may be required by the BLGF; and
q. Perform other duties and functions that may be assigned.
Figure 3. Organizational Structure of the Municipal Treasury Office
MUNICIPAL TREASURER
Assistant Municipal Treasurer
Administrative Section
Cash Division Revenue Division
Note: Administrative functions may be more of records management, supply management,

bonding requirements, performance management and similar administrative support
functions. HR functions may be limited to attendance monitoring, travel order and training,
monitoring of personnel action, but maintenance of personnel records must still be lodged
with the HR office or department of the LGU.
17

CHAPTER
THE LOCAL TREASURER
2 AND THE ASSISTANT LOCAL TREASURER
SECTION 5. AUTHORITY OF THE SECRETARY OF FINANCE

TO APPOINT LOCAL TREASURER AND ASSISTANT
LOCAL TREASURER
A. The appointment of a Treasurer shall be mandatory for Provincial, City and Municipal
Governments [Sec. 470 (c), LGC], while the appointment of an Assistant Local Treasurer
shall be optional [Sec. 471(b), LGC].
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,
subject to civil service law, rules and regulations. [Sec. 470 (a), LGC]
C. Nepotic Appointment
1. No person shall be appointed in the career service of the local government if
he/she is related within the fourth civil degree of consanguinity or affinity to the
appointing or recommending authority. (Sec. 79, Title III, LGC)
2. All appointments in the national, provincial, city and municipal governments or in
any branch or instrumentality thereof, including government owned or
controlled corporations, made in favor of a relative of the appointing or
recommending authority or of the chief of the bureau or office or of persons
exercising immediate supervision over him, are hereby prohibited.
The word “relative” and members of the family referred to are those related
within the third degree either of consanguinity or of affinity.
(Sec. 59. Chapter VIII, Book V, Administrative Code of 1987)
3. The rule on Nepotic appointment under Sec. 79, Title III of the LGC applies to local
treasurers and assistant treasurers in LGUs and not that under Sec. 59, Chapter
VIII, Book V of the Administrative Code of 1987. (CSC Resolution No. 1000170
dated 06 October 2010 as affirmed by CA Decision dated 07 November, 2013 in
CA G. R. S. P. No. 121404)
18

THE LOCAL TREASURER AND THE ASSISTANT LOCAL TREASURER
SECTION 6. AUTHORITY OF THE LCE OVER THE LOCAL TREASURER

AND ASSISTANT LOCAL TREASURER
The Treasurer shall be under the administrative supervision of the Governor or Mayor, as the
case may be, to whom he/she shall report regularly on the tax collection efforts in the LGUs.
[Sec. 470 (b), LGC]
The administrative supervision by the Local Chief Executive (LCE) over local treasurers
shall be executed in close coordination with the Secretary of Finance being the appointing
authority of treasurers. For this purpose, the treasurer shall be guided by the definition of
administrative supervision as provided under Sec. 38(2), Chapter 7, Book IV of Executive
Order 292 or the Administrative Code of 1987.
“Administrative Supervision. - (a) Administrative supervision which shall

govern the administrative relationship between a department or its
equivalent and regulatory agencies or other agencies as may be provided by
law, shall be limited to the authority of the department or its equivalent to
generally oversee the operations of such agencies and to insure that they are
managed effectively, efficiently and economically but without interference
with day-to- day activities; or require the submission of reports and cause
the conduct of management audit, performance evaluation and inspection
to determine compliance with policies, standards and guidelines of the
department; to take such action as may be necessary for the proper
performance of official functions, including rectification of violations,
abuses and other forms of maladministration; and to review and pass upon
budget proposals of such agencies but may not increase or add to them;
(b) Such authority shall not, however, extend to: (1) appointments and
other personnel actions in accordance with the decentralization of
personnel functions under the Code, except when appeal is made from an
action of the appointing authority, in which case the appeal shall be
initially sent to the department or its equivalent, subject to appeal in
accordance with law; (2) contracts entered into by the agency in the pursuit
of its objectives, the review of which and other procedures related thereto
shall be governed by appropriate laws, rules and regulations; and (3) the
power to review, reverse, revise, or modify the decisions of regulatory
agencies in the exercise of their regulatory or quasi-judicial functions; and
(c) Unless a different meaning is explicitly provided in the specific law
governing the relationship of particular agencies, the word “supervision”
shall encompass administrative supervision as defined in this paragraph.”
The DOF shall maintain its focal role as the overseer of the operations of local treasury
offices, both in administrative and technical aspects.
19

LTOM, 2ND EDITION
SECTION 7. QUALIFICATIONS OF A LOCAL TREASURER

A. No person shall be appointed Treasurer unless, he/she possesses the following
qualifications:
1. A citizen of the Philippines;
A person with dual citizenship shall not be appointed in government unless he/she
renounces his/her foreign citizenship pursuant to the provision of RA 9225. (CSC
Memorandum Circular No. 23, series of 2016)
2. A resident of the LGU concerned;
One is a resident of a place from which his departure is indefinite as to time,
definite as to purpose; and for this purpose he has made the place his temporary
home. (Uytengsu vs. Republic of the Philippines, GR No. L-6379)
3. Of good moral character;
4. A holder of a college degree preferably in commerce, public administration or law
from a recognized college or university;
5. A first grade civil service eligible or its equivalent; and
6. Must have acquired experience in treasury or accounting service for at least five
(5) years in the case of the City or Provincial Treasurer, and three (3) years in the
case of Municipal Treasurer. [Sec. 470 (c) and 471(b), LGC]
B. The Secretary of Finance, in the exercise of his/her appointing power, may institute
additional competency indicators as criteria in the selection process, subject to civil
service rules and regulations.
SECTION 8. PROCESSING OF THE APPOINTMENTS OF PROVINCIAL,

CITY, AND MUNICIPAL TREASURERS AND ASSISTANT
PROVINCIAL, CITY, AND MUNICIPAL TREASURERS
Pursuant to Department Personnel Order (DPO) No. 477.2019 dated 04 June 2019, and its
implementing guidelines, the appointments of the Provincial, City, or Municipal Treasurers
or Assistant Treasurers shall be processed as follows:
A. Criteria for Evaluation. ln evaluating all the recommendees of the LCE, the
following qualifications and attributes shall be weighted:
1. Education: College degree, preferably in commerce, public administration or law,
from a recognized college or university;
2. Experience in treasury or accounting service: Provincial and City Treasurers and
Assistant Provincial and City Treasurers: At least five (5) years; Municipal
Treasurers or Assistant Municipal Treasurers: At least three (3) years;
20

3. Performance: At least ‘Very Satisfactory’ rating in the last rating period prior to
the assessment or screening;
4. Relevant Training: Completion of trainings, scholarships, and other capacity
building interventions relevant to the duties and functions of the position
undertaken within the last five (5) years reckoned from the date of LCE
recommendation; and
5. Other Related Criteria and Attributes: To further establish competency and fitness,
additional criteria and attributes shall be evaluated and weighted, namely: (i)
Salary Grade/Rank; (ii) Previous Designation in the Local Treasury Service; (iii)
Post-graduate Degree/s; (iv) Bar and/or Professional License; (v) SEAL
certification; and (vi) Interview by the BLGF.
The weights for SEAL certification shall be as follows: 10% for BCLTE, 15% for
ICLTE, and 20% for ACLTE.
The table of criteria and the respective weight allocations is attached as Annex
3 [Department Personnel Order (DPO) 477.2019].
All mandatory requirements required under the LGC and CSC rules that have no point
allocation or determined on a pass-fail basis, such as citizenship, residency, good moral
character, eligibility, and non-nepotic relationship, together with the applicable clearances
and certifications, shall be fully evaluated by the BLGF.
B. Appointment Requirements and Procedures
1. Publication and Posting of Vacancy. Per ltem Nos. 3.2 and 3.3 of DPO No.
477.2019, the publication and posting of the vacant position of Local Treasurer
(LT) or Assistant Local Treasurer (ALT), in accordance with RA No. 7041, as
amended, for at least fifteen (15) calendar days, shall first be complied with. The
filling up of the vacant position shall be made after fifteen
(15) calendar days from its publication, but shall not exceed nine (9) months from
the date of publication. Such notice of vacancy shall strictly contain the
qualification standards, as provided under Secs. 470 and 471 of Republic Act (RA)
No. 7160 or the Local Government Code (LGC) of 1991, and shall be posted in at
least three (3) conspicuous places within the concerned LGU, and shall be reported
to the Civil Service Commission (CSC).
2. Prescribed Documentary Requirements. The basic documentary
requirements for processing the appointments of LT and ALT are as follows:
First Level Basic Documentary Requirements

for Appointment of Local Treasurers and Assistant Local Treasurers
Document Remarks
A. Requirements from the Individual Recommendees
1. Personal Data Sheet (PDS) - CSC Form No. 212, with the following:
3 Originals*
1.1 Service Record 3 Originals

1.2 Work Experience Sheet 3 Originals
21

LTOM, 2ND EDITION
Document Remarks
1.3 Previous Office Order of Designation as Treasurer/ 1 Certified Copy
Assistant Treasurer each
1.4 Sworn Certificate of Employment (for private work
1 Photocopy
experience)
1.4 Latest Approved Appointment (if applicable) 1 Certified Copy
1.5 Certificate of Residency9 1 Original
2. Certificate/s of Eligibility
2.1 Civil Service Commission for CSP and/or BCLTE 1 Authenticated
Copy for each
2.2 Professional Regulation Commission (PRC)
applicable eligibility
2.3 Bar
1 Certified Copy
3. Relevant Training Certificates10
each
1 Certified Copy
4. Performance Evaluation for the last two (2) rating periods11
each
B. LGU Requirements
1. Recommendation Letter of Local Chief Executive, with the following:
1 Original*
1.1 Sworn Statement of Non-Prohibited Relationship12 1 Original*

1.2 Certification of Availability of Funds13 1 Original
1.3 Approved Plantilla Schedule for the current year 1 Certified Copy
1.4 Publication of Vacancy (not beyond 3 months old)
1 Original
and Posting, with Qualification Standards14
1.6 Certificate of SPMS Compliance 1 Certified Copy
1.7 If applicable, provide justification/certification for: 1 Original for each
a. Quantum Leap in Salary Grade applicable case or
b. Dearth of Applicants/Inclusion of Applicants from Other include in the
LGUs recommendation
c. Non-inclusion of Next-in-Rank Employees letter
1.8 Government Issued ID with Photo and Signature of LCE 1 Certified Copy
Additional Requirement for Assistant Local Treasurer:

Certificate of Compliance with Sec. 325 of Republic Act No. 716015
* Original document must be signed by hand.

9 Certificate issued by the concerned Barangay Chairman and stating the candidate’s good moral character
10 Maximum ot 120 hours for the last 5 years for PT/CT: and 40 hours for the last 5 years for MT
11 Reckoned from the date of recommendation of the LCE
12 Certificate must state that the nominee is not within the 4th degree of affinity or consanguinity of the LCE
13 Certificate issued by the concerned Local Accountant or Budget Officer stating the authorized salary rate,
salary grade and item number of the position
14 The Qualifications Standards to be published and posted must follow Sec. 470 and 471 of Republic Act No. 7160
15 Signed by hand by the LCE and Local Accountant stating that the filling up of the position complies with Sec.
325a of the LGC
22

Second Level Basic Documentary Requirements

Document Remarks
1. Transcript of Records (except for recommendees who are already 1 Authenticated

regularly appointed Local Treasurer/Assistant Local Treasurer) Copy for each
academic degree
2. Latest Sworn Statement of Assets, Liabilities, and Net Worth
1 Original
(SALN)
3. Medical Certificate - Latest CSC Form No. 211 1 Original
4. Valid Clearances and Certificate/s of No Pending Case (if with pending case/s,
provide Case Summary/ies):
4.1 National Bureau of Investigation (NBI) 1 Original
4.2 Civil Service Commission (CSC) 1 Original
4.3 Ombudsman 1 Original
4.4 BLGF (only for recommendees who are already appointed
1 Original
LT/ALT
4.5 LGU or NGA (only for recommendees who are appointed
1 Original
government personnel)
5. Marriage Certificate (for married female only) 1 Certified Copy
6. Acceptance of Lower Salary (if applicable) 1 Original
3. Submission of Documentary Requirements.

The LGU, through its Human Resource Management Officer, shall:
a. Require each recommendee to submit all documentary requirements listed
in item A under the First Level Basic Documentary Requirements and
ensure the completeness of information;
b. Prepare the documentary requirements in item B of the First Level Basic
Documentary Requirements;
c. Consolidate, label, tab and properly file in a docket or binder all documents
enumerated in Annex A, together with the letter of recommendation of the
LCE [See Annex 4 (MC 025-2019)] as cover; and
d. Requisites in the Submission of Letter of Recommendation of the LCE. The
letter of recommendation with supporting documents shall be submitted to
the BLGF RO, through the Provincial Treasurer, in the case of
municipalities and component cities, and to the BLGF CO Administrative
Division, in the case of LGUs in the National Capital Region (NCR), for
pre-evaluation and initial screening. lf the recommendation is made by the
LCE in Acting Capacity, compliance with Sec. 46 of RA No. 7160, or the
LGC, shall be observed.
23

LTOM, 2ND EDITION
4. First Level (lnitial Screening) Process. The concerned BLGF Action Officer
shall pre-evaluate the LGU's compliance with the documentary requirements and
provide immediate feedback. ln case the documents submitted are found
incomplete or deficient, the LGU shall be properly notified using the prescribed
forms under the said guidelines. The evaluation of the documents shall be
certified as to completeness and orderliness, and submitted to the BLGF
Regional and Central Human Resource Merit Promotion and Selection Boards
(HRMPSBs) for deliberations. The BLGF HRMPSB shall deliberate and rank the
recommendees for LT and/or ALT position/s. lt shall comparatively evaluate all
recommendees using the prescribed evaluation form. lnterview of recommendees
by the BLGF Regional Director or Executive Director, as the case may be, shall be
required to further evaluate the candidates' capacity for the position, and the
corresponding points shall be included in the evaluation sheet. The results of each
deliberation shall be formalized through a Board Resolution, and supported by
duly signed summary of ratings, including all the First Level documentary
requirements and the accomplished compliance certification, to be submitted to the
BLGF Central HRMPSB.
5. Second Level (Final Deliberation) Process. The BLGF Central HRMPSB
shall conduct the corresponding Second Level process for the final deliberation of
all recommendees. The BLGF CO Administrative Division shall communicate the
results to the BLGF RO to inform the concerned recommendee of the submission
of the documentary requirements specified in the Second Level Basic
Documentary Requirements. Upon completion of all the required documents, the
BLGF Central HRMPSB Chairperson shall endorse the proposed appointment
papers to the Secretary of Finance, through the Undersecretary of Revenue
Operations Group (ROG), for final action, together with the certification as
provided. As part of due diligence, the BLGF Office of the Executive Director, the
ROG Office of the Undersecretary, and/or the DOF Office of the Secretary may
require additional information or clarification whenever warranted.
6. Return Without Action Policy. All recommendations or documents received by
the BLGF RO or CO that are not compliant with the requirements shall be given
up to thirty (30) days upon issuance of notification to complete the same. If after
the lapse of the said period the requirements remain to be completed, the entire
set of documents shall be immediately and formally returned without action to the
concerned LCE. ln cases of individual applications received by the BLGF, the
same shall be immediately referred to the concerned LCE for appropriate action.
7. lssuance of Appointment Papers. All appointments signed and issued by
the Secretary of Finance shall be subject for attestation by the CSC. The same are
not covered by Section 18 Rule Vl of the ORAOHRA, which requires the
concurrence of the majority of all the members of the local Sanggunian to approve
such appointments, inasmuch as the appointing authority is the Secretary of
Finance.
24

As per ltem No. 3.11 of DPO No. 477.2019, a certified true copy of the
appointment shall be issued to the appointee, through the BLGF, copy furnished
the LCE, in order that said appointee can immediately take his/ her oath of office
and assume the duties of the position. ln cases where the nature of the
appointment issued involves promotion or transfer from another agency or LGU to
another, the appointee shall seek an Authority to Transfer from the head of the
agency where he/she is employed prior to assumption, which shall be submitted to
the BLGF CO. Upon receipt of the copy of appointment, the appointed LT or ALT
shall submit to the CSC Field Office, through the BLGF CO Admin Division, the
following:
a. Duly acknowledged, signed and dated Appointment Paper;
b. Copy of the Oath of Office; and
c. Clearance Form (CSC Form No.7).
C. Reappointment. In case of modifications in appointment due to conversion of the

local government (i.e., cityhood, division, merger, etc.), such shall be requested by the
LCE concerned and shall be screened and evaluated by the respective BLGF Regional
and Central HRMPSBs following the foregoing procedures and requirements, to wit:
1. Recommendation Letter of Local Chief Executive, with the following:
a. Sworn Statement of Non-Prohibited Relationship;
b. Certification of Availability of Funds;
c. Approved Plantilla Schedule for the current year; and
d. Government Issued ID with Photo and Signature of LCE.
2. Personal Data Sheet (PDS) - CSC Form No. 212, with the following:
a. Service Record;
b. Work Experience Sheet;
c. Office Order of Designation as Treasurer/Assistant Treasurer;
d. Latest Approved Appointment; and
e. Certificate of Residency.
3. Certificate/s of Eligibility (CSC, PRC, BAR)
4. Relevant Training Certificates
5. Performance Evaluation for the last two (2) rating periods
6. Latest Sworn Statement of Assets, Liabilities, and Net Worth (SALN)
7. Valid Clearances and Certificate/s of No Pending Case (if with pending
case/s, provide Case Summary/ies): NBI, CSC, Ombudsman, BLGF
8. Marriage Certificate, if applicable.
25

LTOM, 2ND EDITION
Pending the issuance of an appointment, the incumbent treasurer/assistant treasurer may

be issued a Notice of Salary Adjustment to effect the commensurate salary of the position
upon the conversion of the LGU. For requests for change of position title which
corresponds to a reappointment, the publication of the position is no longer necessary.
Copies of the LGU’s Charter and plebiscite shall, however, be likewise submitted to
support the request.
D. Administrative Costs. All administrative costs related to the conduct of screening and
deliberations by the BLGF ROs and CO shall be chargeable to the concerned BLGF
office funds only. No fees, of whatever nature, shall be collected for the processing of
appointments from the LGU or individual recommendees.
(BLGF Memorandum Circular No. 025-2019, 30 October 2019)
SECTION 9. DESIGNATION OF ACTING/OFFICER-IN-CHARGE (OIC)/

IN-CHARGE OF OFFICE (ICO) - PROVINCIAL/CITY/
MUNICIPAL TREASURERS AND ASSISTANT TREASURERS
A. General Guidelines on Designation Pursuant to CSC Memorandum
Circular (MC) No. 24 s. 2017 - The designation of a treasurer shall be in accordance
with the following civil service rules:
1. Employees to be designated should hold permanent appointments in career
positions;
2. Designees can only be designated to positions within the level they are
currently occupying. Employees holding first level positions cannot be
designated to perform the duties of second level positions except in
meritorious cases as determined by the CSC Regional Office upon request for
exemption by the agency concerned, such as organizational set-up, calamity
and due to exigency of the service. The exception shall not apply to positions
involving supervisory and executive managerial functions. Division Chiefs
may be designated to perform the duties of second level executive/
managerial or third level positions;
3. For position with incumbents who temporarily cannot perform the duties of
the position (vacation, or sick leave, study leave, scholarship, maternity leave,
special assignments), the designation should be synchronized with the
absence of the incumbent, unless earlier revoked or recalled by the appointing
officer/authority. However, the designation of employees every year may be
renewed in the exigency of the service but not to exceed two (2) years;
4. For position without incumbents, a designation may be made only for a
maximum of one (1) year. However, the designation of employees every year
may be renewed in the exigency of the service but not to exceed two (2)
years;
26

5. Designations shall be made through an office order issued by the appointing

officer/authority concerned;
6. For designations to critical positions in the local government units such as
Provincial/City/Municipal Government Department Head, a copy of the
office order shall be furnished by the HRMOs of the LGUs to the CSCFO
concerned. Employees designated to positions with duties involving practice
of profession shall be required to possess the necessary professional license;
7. Designees cannot be granted the salaries of the positions they are being
designated to. However, allowances that go with the performance of the
functions, such as RATA (Representation and Transportation Allowances) or
EME (Extraordinary and Miscellaneous Expenses) may be granted as
provided under the provisions of the General Appropriations Act (GAA) or
appropriation of the respective local sanggunian; provided the grant of the
same is specifically stated in the designation order; and
8. Only experience gained from designation compliant with the above stated
rules shall be credited as relevant experience for purposes of appointment.
B. Designation of Local Treasurers and Assistant Local Treasurers - As a

general rule, the authority to designate an Acting/OIC/ICO Provincial, City or Municipal
Treasurer, or their respective Assistants, including the authority for the payment of
RATA and the extension of such designation, is delegated to the concerned BLGF
Regional Director, subject to the confirmation of the BLGF Executive Director, in
accordance with established rules and procedures for the purpose. The designation of
City and Municipal Treasurers and their Assistants in the National Capital Region shall
be made by the Secretary of Finance, upon the indorsement of the BLGF Executive
Director. (Department Special Order No. 01-2018 dated 09 November 2018)
C. Qualifications of the Acting/OIC/ICO - Provincial/City/Municipal Treasurer

and Acting/OIC/ICO-Assistant Treasurers - The proposed designee should meet
the following requirements:
1. Must have complied with the minimum qualification requirements of the
position pursuant to the provisions of Secs. 470 and 471 of the LGC;
2. Must belong to the local treasury service over which the Secretary of
Finance, through the Bureau of Local Government Finance, exercises
administrative and technical supervision;
In the absence of qualified and ranking personnel from the local treasury
office, ranking and qualified personnel from the local accounting or budget
offices, assessment office and other related LGU offices, or the BLGF
Central or Regional Offices, may be considered, subject to first being
detailed or reassigned by the appointing authority concerned to
27

LTOM, 2ND EDITION
the Local Treasury Office to which the recommendee will be assigned before the
designation as Acting/OIC/ICO can be effected; and
3. Must have completed or passed any additional competency standards
instituted by the Department of Finance (DOF), whether implemented
directly by the DOF or by an appropriate national government agency in
partnership with the DOF.
D. Recommendation of Local Chief Executive Required for Designations.
The designation of an Acting/OIC/ICO Provincial/City/ Municipal Treasurer and
Acting/OIC/ICO Assistant Provincial/City/Municipal Treasurer shall require written
request of the Local Chief Executive concerned.
E. Specific Guidelines in the Issuance of Designations of Provincial, City and
Municipal Treasurers and Assistant Treasurers.
1. The following designations shall be issued in case a vacancy occurs in the
Office of the Provincial, City or Municipal Treasurer or Assistant Treasurer:
a. Acting Treasurer/Assistant Treasurer
i. If the vacancy is permanent, occasioned by the retirement,
resignation, transfer, death, dismissal from the service, which is
final, and other modes of separation, which are permanent in
nature, of the regular incumbent and the proposed designee
meets the minimum qualifications required for the position.
ii. The designee shall discharge fully the powers and
responsibilities of the Provincial, City, Municipal Treasurer or
Assistant Treasurer, as a result of permanent vacancy of the
position, with the same rights and prerogatives of the position,
except the right to receive the salary appurtenant thereto.
b. Officer-in-Charge (OIC)
i. If the vacancy is temporary, occasioned by the suspension, leave
of absence or official travel exceeding five (5) working days,
dismissal from the service, which is not yet final, detail to other
station, and other forms of sudden incapacity of the regular
incumbent to perform official duties, and the proposed
designee meets the minimum qualifications required for the
position.
ii. The designee shall discharge fully the powers and
responsibilities as Provincial, City or Municipal Treasurer or
Assistant Treasurer, as a result of temporary vacancy of the
position, with the same rights and prerogatives of the concerned
position, except the right to receive the salary appurtenant
thereto.
28

c. In-Charge of Office (ICO)

i. If the vacancy in the position of Provincial, City or Municipal
Treasurer is not exceeding five (5) working days, and the
proposed designee meets the minimum qualifications required
for the position.
ii. As ICO Treasurer, the designee shall perform the duty in a
caretaker capacity, which shall be confined only to day-to- day
operations and functions of administration of the office, such as
signing authority over recurring transactions and mandatory or
statutory obligations of the local government unit concerned.
2. Designations of Acting/OIC Treasurer and Assistant Treasurer shall be for a period
of one (1) year, unless sooner revoked. As may be applicable, the period of
designation shall be synchronized with the period of the absence of the regular
incumbent. As a matter of sound policy and when the exigency of service so
requires, designations may be extended but not to exceed one
(1) year, in accordance with Items 3 and 4, Sec. 13 of CSC MC No. 24, s. 2017,
except when:
a. The designee for Provincial, City or Municipal Treasurer is the
regularly appointed Assistant Local Treasurer;
b. The filling up of the vacant position held by the designee is in
process and the designee is considered for the position;
c. The incumbent Treasurer or Assistant Local Treasurer is suspended
for a period exceeding one (1) year, wherein the designation may be
extended for the remaining period of suspension;
d. The incumbent Treasurer or Assistant Local Treasurer is
dismissed from the service, but the decision is not yet final; and
e. There is established dearth of qualified employees within the local
government concerned. In the case of municipalities, the concerned
Provincial Treasurer shall certify such dearth in the local treasury
offices under his/her jurisdiction before designees from non-treasury
and other LGU treasury offices are considered.
3. All designations and extension thereof shall be upon the written request of the
local chief executive. In the case of designations of Treasurer and Assistant Local
Treasurer of component cities and of municipalities, the indorsement of the
concerned Provincial Treasurer is required. Extension of designations shall only
be conditioned on the satisfactory performance of the designee during the period
of designation pursuant to the approved Strategic Performance Management
System.
4. Designations of City and Municipal Treasurers and Assistant Local Treasurers in the
National Capital Region and extensions thereof shall be made by
29

LTOM, 2ND EDITION
the Secretary of Finance, except for ICO, which shall be acted upon by the
BLGF Executive Director. All other designations shall be made by the concerned
BLGF Regional Director, and such designations and extensions thereof shall be
confirmed by the BLGF Executive Director.
Designations of treasurers/assistant treasurers shall be processed by the BLGF
within fifteen (15) days before the expected temporary or permanent vacancy. The
designation Order issued by the Regional Office shall thereafter be submitted to the
BLGF Central Office within fifteen (15) days from its issuance, for confirmation
by the BLGF Executive Director. Non-submission of the designation order for
confirmation and/or non-compliance thereof will render subject Order ineffective.
5. Designations shall comply with the requirements of DOF Department Personnel
Order No. 335-03, as amended, and Department Order No. 053.2016, as amended,
establishing the Standardized Examination and Assessment for Local Treasury
Service (SEAL) Program. The requirement of SEAL Level 1 in the designation of
local treasurers and assistant local treasurers shall take effect in June 2019 to
provide for sufficient transition period, address the dearth of qualified personnel in
the local treasury offices who may be designated for the purpose, and allow local
treasury personnel to acquire the certification through the Basic Competency on
Local Treasury Examination of the Civil Service Commission.
(DOF Personnel Order No. 469.2018, 24 May 2018 amending DPO No.
562.2016, 10 November 2016)
6. The rule on nepotism shall also apply in the designation of treasurers/ assistant
treasurers.
7. Designations of employees holding first level positions to local treasurer or
assistant treasurer positions shall require prior approval from the concerned CSC
Regional Office, upon the request of the BLGF Regional Director having
jurisdiction thereof, in accordance with Sec. 13.c.2 of CSC MC No. 24, s.2017.
8. In case the designee is detailed from another LGU or office, the detail should be
covered by an agreement between the LCE of both LGUs or the concerned agency
head, particularly as regards the continued payment of the salaries and other
benefits of the designee by the LGU or office where he/she is regularly appointed,
and the subsequent return to his/her regular station once deemed necessary and in
the absence of any legal impediment, pursuant to Sec. 13 (b) of CSC MC No. 24,
s. 2017.
9. The BLGF Executive Director shall confirm the designations of provincial, city,
and municipal treasurers issued by the BLGF Regional Offices.
(DPO No. 308. 2016 dated 29 July 2016 as amended by DPO No. 094.
2017, 17 February 2017)
30

F. Documentation – Designations submitted to the DOF, through the BLGF Central

Office, for confirmation, shall be supported by the following documents:
1. Regional Special Personnel Order (RSPO) issued by the BLGF Regional Director;
2. Comments/Recommendations of the BLGF Regional Director contained in an
Indorsement;
3. Written endorsement of the Provincial Treasurer, in the case of the Acting/ OIC
Municipal Treasurer and Acting/OIC Assistant Municipal Treasurer, or
Acting/OIC City Treasurer and Acting/OIC Assistant City Treasurer of component
cities;
4. Written request and recommendation of the Local Chief Executive(s) concerned;
5. Updated Personal Data Sheet, as prescribed by the CSC;
6. Copy of the plantilla of the local treasury office of the LGU concerned;
[DOF Department Personnel Order (DPO) No. 335-03, 01 October 2003]
7. Justification in case the most ranking personnel in the treasury office was not
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;
8. Authenticated Civil Service Eligibility by the Civil Service Commission (CSC) or
its equivalent; (Art. V, Sec. 9, PD 807)
9. Sworn Statement of Assets and Liabilities of the immediate preceding year;
(Sec. 34, Chapter 9, Book 1, Administrative Code of 1987)
10. Performance Ratings using the CSC-approved Strategic Performance Rating
System of the LGU or results from any other performance evaluation tool
instituted by the DOF, applied during the period of designation, should at least be
Very Satisfactory or its equivalent thereof; (CSC MC No. 6, s. 2012)
11. Affidavit of Disclosure re: non-dual citizenships; (BLGF Memorandum Circular
No. 10-001-2016, 03 October 2016)
12. Notarized certification of non-relationship within the 4 th degree of consanguinity
to the designee issued by the LCE;
13. Certification of the Provincial Treasurer that there is dearth of qualified
employees within the local government concerned, if applicable;
14. Written agreement between the LCEs or heads of agency concerned in case
the designee needs to be detailed to the local treasury office; and
15. Authority or approval of the CSC Regional Office concerned allowing the
designation of a first level employee and/or a detailed employee to be designated
Acting/OIC/ICO Treasurer or Assistant Treasurer.
31

LTOM, 2ND EDITION
SECTION 10. AUTOMATIC SUCCESSION OF THE ASSISTANT

PROVINCIAL/CITY/MUNICIPAL TREASURER
A. When the incumbent Local Treasurer dies, absconds or becomes incapacitated and when
the exigencies so require, the regularly appointed Assistant Local Treasurer may
automatically perform the functions as In-Charge of Office (ICO), as defined in Sec. 9
hereof, without the need of order of designation from the BLGF.
B. However, the regularly appointed Assistant Local Treasurer who automatically assumes
as ICO Local Treasurer shall within twenty-four (24) hours notify directly the concerned
BLGF Regional Director, the concerned banks and the COA of the absence, sickness,
death or any other reason of incapacity of the regular incumbent to discharge his/her
functions, and of the date of his/her assumption.
C. Within forty-eight (48) hours after receipt of the notice, the BLGF Regional Director
shall, in the absence of the recommendation of the LCE concerned, issue the Order of
Designation of the Assistant Local Treasurer. The rules under Sec. 9 hereof shall
suppletorily apply. In the case of the NCR, the BLGF Executive Director shall
immediately recommend to the Secretary of Finance for the issuance of the designation
order.
D. It shall be the duty of the BLGF to ensure that impending vacancies are properly
monitored and immediately acted upon, and that the concerned local chief executive is
properly informed.
SECTION 11. DESIGNATION IN THE ABSENCE

OF AN ASSISTANT LOCAL TREASURER
In cases where there is no 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, OIC or ICO Provincial/City/Municipal
Treasurer, as the case may be. If other ranking and qualified personnel of other offices outside
of the Local Treasury Office of the LGU concerned, who is duly bonded, is considered
due to dearth of qualified and competent personnel within the local treasury office, he/she
may be designated as Acting or OIC or ICO Provincial/City/ Municipal Treasurer. The
policies and procedures set under Sec. 9 of this Manual shall be adopted for this purpose.
SECTION 12. RELIEF OR DETAIL OF TREASURERS

AND ASSISTANT LOCAL TREASURERS
A. Requests for relief of treasurers and assistant treasurers shall be acted upon only for
justifiable reasons and after compliance with the requisites of due process as follows:
32

1. The treasurer consents thereto;

2. There exists an audit finding of actual shortage of cash which should be on
hand, pursuant to Sec. 348 of the LGC;
a. No order of relief shall be authorized unless the following are established in
coordination with the COA:
i. The actual date/s of auditorial visit by COA;
ii. Existence of actual cash shortage as appearing in the Cash
Examination Report; and
iii. There is a written recommendation from the COA for the relief of the
treasurer or assistant treasurer.
b. Upon confirmation with the COA, the Regional Director shall immediately
direct the relief from the office of the treasurer/ assistant treasurer.
c. The concerned treasurer/assistant treasurer shall secure a clearance
from the COA relative to his/her restoration to Office.
3. The treasurer/assistant treasurer has been formally charged with grave offense and
the ninety (90)-day preventive suspension has expired, but formal investigation
has not yet been terminated.
(DOF Department Personnel Order 335-03, 01 October 2003)
B. The detail of Treasurers and Assistant Treasurers shall be in accordance with Section 4
of Department Special Order No. 01.2018, dated 09 November 2018, and shall be
governed by the following guidelines, in accordance with Sec. 13 (b) of CSC MC 24, s.
2017:
1. A detail is the temporary movement of an employee from one department or
agency to another which does not involve a reduction in rank, status or salary.
2. An office order shall be issued by the appointing authority. Hence, in the case of a
local treasurer being detailed to another office or agency, the detail order shall be
issued by the Secretary of Finance or his/her duly authorized representative upon
the recommendation/consent/approval of the local chief executive concerned. The
local treasurer/assistant treasurer detailed receives his/her salary only from his/her
parent unit/agency.
3. A detail without the consent of the treasurer shall be allowed only for a maximum
period of one (1) year. Detail with consent shall be allowed for a maximum of
three (3) years provided that the extension or renewal thereof shall be discretionary
on the part of the parent agency.
4. The detail of a treasurer/assistant treasurer from one department or agency to
another shall be covered by an agreement manifesting the arrangement between
the agency heads that it shall not result in reduction in rank, status
33

LTOM, 2ND EDITION
or salary of the employee, the duration of the detail, duties to be assigned to the
employee and responsibilities of the parent agency and the receiving agency.
5. No detail shall be made within three (3) months before any election unless
authorized by the COMELEC. (Sec. 5, Rule XVIII; Omnibus Rules Implementing
Book V of E. O. No. 292 and Other Pertinent Civil Service Law)
6. If the treasurer/assistant treasurer believes that there is no justification for the
detail, he/she may appeal the detail order within fifteen (15) days from receipt to
the CSC (Commission) or CSC Regional Office (CSCRO) with jurisdiction.
Pending appeal, the detail order shall be executory unless otherwise ordered by the
CSC. Decision of said CSCRO may be further appealed to the Commission within
fifteen (15) days from receipt.
7. During the period of the detail, the parent LGU relinquishes administrative
supervision over the detailed treasurer/ assistant treasurer to the receiving agency.
Administrative supervision refers to the authority to direct the performance of
duties; restrain the commission of acts; and review, approve, reverse or modify
acts or decisions of the detailed treasurer/assistant treasurer. In this regard, the
receiving agency has the responsibility to monitor the punctuality and attendance
of the employee, approve requests for leave, evaluate his/her performance, grant
the authority to travel and exercise other acts necessary to effectively supervise the
treasurer/assistant treasurer; provided a report on said matters is submitted to the
parent agency for record purposes.
8. Prior to the effectivity of the detail, the parent LGU shall furnish a certification of
the available sick and vacation leave credits of the detailed treasurer/ assistant
treasurer to the receiving agency. In the event the receiving agency approves
requests for leave by the detailed treasurer/ assistant treasurer, a copy of the same
shall be submitted to the parent LGU.
9. The detailed treasurer or assistant treasurer shall be designated to a position whose
duties are comparable to his/her position in the parent agency. However, he/she
shall not be designated to a position exercising control or supervision over regular
and career employees of the receiving agency.
10. The authority to discipline the detailed treasurer/assistant treasurer is still vested in
the appointing officer/authority of the parent agency where he/she belongs. As
used herein, the authority to discipline includes the determination of the existence
of a prima facie case against the detailed treasurer/assistant treasurer, issuance of a
formal charge, issuance of the order of preventive suspension if the case so
warrants, conduct of formal investigation, and rendering of the decision on the
administrative case.
11. With respect to personnel actions such as promotion, transfer, renewal, change of
status, demotion, upgrading and reclassification of positions and the like, which
require the issuance of an appointment, and other personnel
34

movements such as reassignment, detail, secondment, job rotation and designation

which do not necessarily require the issuance of an appointment, including salary
adjustment, step-increment and monetization of leave credits concerning the
detailed treasurer/ assistant treasurer, the same shall still be under the jurisdiction
of the mother agency notwithstanding that the local treasurer/assistant treasurer is
detailed in another agency.
12. All human resource actions and movements, including monetization of leave
credits, concerning the detailed treasurer/assistant treasurer, shall still be under the
jurisdiction of the parent agency, notwithstanding his/her detail in another agency.
SECTION 13. OTHER PERSONNEL ACTIONS FOR LOCAL TREASURERS

The following human resource actions shall be approved by the Secretary of Finance, or
his/her duly authorized representative, subject to the recommendation/indorsement of the
concerned local chief executive:
A. Secondment
1. Secondment is the movement of an employee from one department or agency to
another which is temporary in nature and which may or may not require the
issuance of an appointment which may either involve increase in compensation
and benefits. Acceptance thereof is voluntary on the part of the employee.
2. An office order shall be issued by the appointing authority or his/her duly
authorized representative in favour of the seconded Treasurer/Assistant Treasurer,
considering that secondment is a personnel action. (CSC letter dated 7 November
2016)
3. Secondment shall be governed by the following general guidelines:
a. Secondment shall be limited to employees occupying managerial,
professional, technical and scientific positions;
b. Secondment to international bodies/organizations recognized by the
Philippine government may be allowed;
c. Secondment for a period of one year or more shall be subject to approval by
the CSC. In case the secondment of less than one year is extended and such
extension shall cover a total period of one year or more, the extension shall
be subject to CSC approval;
d. Approval of the secondment shall be subject to the following conditions:
i. A Memorandum of Agreement or contract for secondment
between the parent and receiving agency, concurred in by the
35

LTOM, 2ND EDITION
treasurer/assistant treasurer and approved by the Secretary of

Finance, shall be submitted to the CSC within 30 days from signing of
the contract;
ii. A seconded treasurer/assistant treasurer shall not be allowed to report
to the receiving agency earlier than the date of signing of the
Memorandum of Agreement; and
iii. The period of secondment shall be for a maximum of three (3) years
except otherwise provided by law or as required under bilateral/
multilateral agreements.
e. Any violation of the provisions of the Memorandum of Agreement shall be
ground for discontinuance thereof without prejudice to the filing of
disciplinary action against the person/s responsible for the violation;
f. Acceptance of scholarship by a seconded treasurer/assistant treasurer shall
terminate the secondment;
g. Payment of salaries of a seconded treasurer/assistant treasurer shall be borne
by the receiving agency. In case of a higher compensation covered by a duly
issued appointment within the Philippine government, the same may be used
for the purpose of computing his retirement benefits but not for the purpose
of commutation of leave credits earned in the mother agency. In case of a
lower compensation, the parent agency (LGU) shall pay the difference. This
rule does not apply in cases of secondment to international agencies; and
h. The seconded treasurer/assistant treasurer shall be on leave without pay in
his/her parent agency (LGU) for the duration of his secondment, and during
such period, he or she may earn leave credits which are commutable
immediately thereafter and payable by the receiving agency.
[Sec. 6 (c), CSC MC No. 15, s. 1999]
B. Transfer (Sec. 11 of CSC MC No. 24, s. 2017)

Transfer is the movement of an employee from one position to another which is of
equivalent rank, level or salary without gap in the service involving the issuance of an
appointment.
The transfer may be from one organizational unit to another in the same department or
agency or from one department or agency to another.
A treasurer/assistant treasurer who seeks to transfer to another office shall notify the
LCE concerned in writing within 30 days prior to the effective date of his/her transfer.
The LCE shall endorse the said request to the Secretary of Finance, or his/her duly
authorized representative, who shall notify the treasurer/assistant treasurer in writing of
the approval of the request within 30 days from date of notice. If said request is not
granted by the LCE or the Secretary of Finance, or his/her duly
36

authorized representative, it shall be deemed approved after the lapse of 30 days from
the date of notice without the need to notify the employee concerned. It is understood
that the treasurer/assistant treasurer who seeks to transfer is cleared from money,
property and work-related accountabilities.
If, for whatever reason, the treasurer/assistant treasurer fails to transfer on the specified
date, he/she shall be deemed resigned. However, should he/she opt to remain in the same
LGU before the specified date of transfer, he/she may be reappointed if there is no gap
in the service or reemployed if there is gap in service. In both cases, the
treasurer/assistant treasurer shall undergo the usual hiring process.
Transfer during election period shall be governed by COMELEC rules and regulations.
C. Reassignment [Sec. 13(a) CSC MC No. 24, s. 2017]

Reassignment is the movement of an employee across the organizational structure within
the same department or agency, which does not involve reduction in rank.
The reassignment of local treasurers and assistant local treasurers shall be made in
accordance with Section 4 of Department Special Order No. 01.2018, dated 09
November 2018, and shall be governed by following civil service rules:
1. Reassignment of employees with station-specific place of work indicated in their
respective appointments within the geographical location of the agency shall be
allowed only for a maximum period of one (1) year. The restoration or return to
original post/assignment shall be automatic without the need of any order of
restoration/revocation of the order of reassignment.
An appointment is considered station-specific when: (a) the particular office or
station where the position is located is specifically indicated on the face of the
appointment paper; or (b) the position title already specifies the station, such as
Human Resource Management Officer, Accountant, Budget Officer, Assessor,
Social Welfare and Development Officer, and such other positions with
organizational unit/station-specific function. Such position titles are considered
station-specific even if the place of assignment is not indicated on the face of the
appointment.
It is noted that the appointment of a treasurer/assistant treasurer is station
specific.
2. Reassignment is presumed to be regular and made in the interest or exigency of
public service unless proven otherwise or if it constitutes constructive dismissal.
Constructive dismissal exists when an official or employee quits his/her work
because of the agency head’s unreasonable, humiliating, or demeaning actuations,
which render continued work impossible because of geographic location, financial
dislocation and performance of other duties and responsibilities inconsistent with
those attached to the position. Hence, the employee is deemed illegally dismissed.
This may occur although there
37

LTOM, 2ND EDITION
is no diminution or reduction in rank, status or salary of the employee.

Reassignment that constitutes constructive dismissal may be any of the
following:
a. Reassignment of an employee to perform duties and responsibilities
inconsistent with the duties and responsibilities of his/her positions such as
from a position of dignity to a more servile or menial job;
b. Reassignment to an office not in the existing organizational structure;
c. Reassignment to an existing office but the employee is not given any
definite set of duties and responsibilities;
d. Reassignment that will cause significant financial dislocation or will cause
difficulty or hardship on the part of the employee because of geographic
location;
e. Reassignment that is done indiscriminately or whimsically because the law
is not intended as a convenient shield for the appointing/ disciplining officer
to harass or oppress a subordinate on the pretext of advancing and
promoting public interest, such as reassignment of employees twice
within a year, or reassignment of career service officials and employees
with valid appointments during change of administration of elective and
appointive officials; or
f. Reassignment that results in constructive dismissal must be sufficiently
established.
3. The employee may appeal the reassignment order within 15 days upon receipt
thereof to the Commission or CSCRO with jurisdiction, as provided under specific
law, if he/she believes there is no justification for the reassignment. Pending
appeal, the reassignment shall not be executory. The decision of the CSCRO may
be further appealed to the Commission within 15 days from receipt thereof.
Reassignment during election period shall be governed by COMELEC rules and
regulations.
D. Reinstatement [Sec. 11(f) CSC MC No. 24, s. 2017]

The reinstatement of a treasurer/assistant treasurer shall be guided by the following:
Reinstatement to a comparable position- is the restoration of a person, as a result of a
decision, to a career position from which he/she, through no delinquency or misconduct,
been separated but subject position is already abolished, requiring the issuance of an
appointment to a comparable position to the separated employee.
Reinstatement to the position – involves the restoration of a person, as a result of a
decision, to a career position from which he/she, through no delinquency or
38

misconduct, been separated from the service but subject position is still available, does
not need the issuance of an appointment.
The reinstatement of treasurers/assistant treasurers shall be effected upon the issuance
of an appropriate order of the Secretary of Finance or the Executive Director of BLGF,
as may be applicable.
E. Extension of Service [Sec. 129, CSC MC No. 24, s. 2017]

The extension of service of a treasurer/assistant treasurer who will reach the compulsory
retirement age of 65 years may be allowed for a period of six (6) months and in
meritorious circumstances may be extended for another six (6) months. The request for
extension shall be filed with the CSC not later than three
(3) months prior to the date of his/her compulsory retirement. Services rendered during
the period of extension shall no longer be credited as government service.
However, for one who will complete the fifteen (15) years of service required under the
GSIS Law, a maximum period of two (2) years may be allowed. Services rendered
during the period of extension shall be credited as part of government service for
purposes of retirement.
The request shall be submitted to the BLGF with the following documents:
1. Recommendation for the extension of service signed by the Local Chief
Executive concerned, or the treasurer in case of extension to complete
the 15-year service required under the GSIS Law, containing the
justifications for the request;
2. Certification by a licensed government physician that the treasurer/
assistant treasurer subject to the request is still mentally and physicallyfit
to perform the duties and functions of his/her position;
3. Certified true copy of the employee’s Certificate of Live Birth;
4. Clearance of no pending administrative case issued by the CSC,
Office of the Ombudsman, the LGU concerned and the BLGF;
5. Service record of the treasurer/assistant treasurer, if the purpose of the
extension is to complete the 15-year service requirement under the GSIS
Law;
6. Certification from the GSIS on the Total Length of Service (TLS) of the
treasurer or assistant treasurer for those who are completing the 15-year
service requirement;
7. Certified true copy of the updated Plantilla of Personnel issued by the LGU
HRM Officer; and
8. Proof of payment of the filing fee.
39

LTOM, 2ND EDITION
The request shall be forwarded to the BLGF Executive Director, thru the concerned
BLGF Regional Director and Provincial Treasurer, as may be applicable, for initial
evaluation, not later than six (6) months prior to retirement.
The BLGF Executive Director shall evaluate the recommendation and subsequently
endorse the same to the CSC for approval.
The only basis for the Secretary of Finance, BLGF Executive Director or the LCE to
allow treasurers/ assistant treasurers to continue rendering service after his/ her 65 th
birthday is a CSC Resolution granting the request for extension. In the absence of such
resolution, the said treasurer/assistant treasurer shall not be authorized to perform the
duties of his/her position and his/her salaries shall be the liability of the official
responsible for the continued service of the treasurer/ assistant treasurer.
During the period of extension, the employee on service extension shall be entitled to
salaries and salary increases, allowances, and other remunerations that are normally
considered part and parcel of an employee’s compensation package subject to the
existing regulations on the grant thereof, except step increments. The treasurer/assistant
treasurer shall likewise be entitled to 15 days’ vacation and 15 days sick leave annually,
provided that the same are not commutative and cumulative.
F. Other Modes of Separation from the Service

1. Resignation
The resignation of a local treasurer/assistant local treasurer shall be guided by the
provisions of Sec. 104 of CSC MC No. 24, s. 2017:
a. Resignation is an act of an official or employee by which he/she voluntarily
relinquishes in writing his/her position effective on a specific date which
shall not be less than thirty (30) days from the date of such notice or earlier
as mutually agreed upon by the employee and the appointing
officer/authority. To constitute a complete and operative resignation of an
official or employee, there must be a written intention to relinquish the
office, the acceptance by the appointing officer/ authority and a written
notice of such acceptance duly served to the official or employee concerned
(It is now clear that there is a 30-day notice rule in the government sector.
Also note that in the case of Reyes v. Atienza, 470 SCRA 670, the Supreme
Court said that without acceptance by competent authority, resignation is
nothing and the officer remains in office.)
b. An official or employee is deemed to have tendered his/her resignation upon
receipt by the appointing officer/authority of the former’s written
resignation.
c. Pending receipt by the official or employee of the action taken by the
appointing officer/authority on the resignation, the official or
40

employee shall remain in office and retain all the powers, duties and
responsibilities appurtenant thereto.
d. The appointing officer/authority shall act on the notice of resignation within
30 days from receipt thereof. In case the resignation of the official/employee
remains unacted upon for 30 days from receipt of the formal letter of
resignation by the appointing officer/authority, it shall be deemed complete
and operative on the specified date of effectivity or 30 days from submission
thereof, in cases where the effectivity date is not specified. It must be
understood, however, that the required clearance from money, property and
work-related accountabilities shall be secured by the official or employee
before or immediately after the date of effectivity of resignation.
e. In the interest of service, however, the appointing officer/authority may set a
date of effectivity of the resignation, but in no case shall be earlier than the
date specified in the letter of resignation or 30 days from submission
thereof.
f. The acceptance of resignation is mandatory. The appointing officer/
authority may suspend the effectivity date of resignation despite its initial
written notice of acceptance due to any of the following reasons:
i. When the country is at war or when any other national or local
emergency has been declared by the appropriate authority; and
ii. When it is necessary to prevent loss of life or property or in case of
imminent danger to public safety due to an actual or impending
emergency caused by serious accidents, fire, flood, typhoon,
earthquake, epidemic or other disaster or calamity.
A resignation previously suspended due to any of the above-mentioned
reasons shall nonetheless be effective 30 days after the circumstances causing
the previous suspension has ceased as certified by the appropriate authority
or the appointing officer/authority.
g. If the last day of the period given to the appointing officer/authority to act
and furnish copy of the written action on the tendered resignation falls on a
holiday or non-working day, copy of the written action shall be furnished
the official or employee concerned on the next working day immediately
following a holiday or non-working day.
h. The treasurer/assistant treasurer concerned may withdraw the tender of
resignation any time prior to the receipt of notice of acceptance of the
resignation from the Secretary of Finance or the BLGF Executive Director,
as may be applicable, or before the lapse of the 30-day period given for the
latter to act on the resignation, whichever comes first. Such acceptance is
mandatory because the resignation is not yet considered complete.
41

LTOM, 2ND EDITION
i. Until the resignation is accepted, the tender of resignation is revocable. Once

the resignation is deemed complete and operative, the withdrawal thereof shall
not automatically restore the treasurer/assistant treasurer to his/her former
position.
In such case, once the Secretary of Finance as the appointing authority, or the
BLGF Executive Director, as may be applicable, accepts the resignation and
the treasurer/assistant treasurer is notified of such acceptance, the
resignation is complete and cannot be withdrawn unless the appointing
authority allows such withdrawal.
j. The following documents shall be submitted to the CSC Field Office
concerned within thirty (30) calendar days from the date of the effectivity of
the resignation, for record purposes:
i. the voluntary written notice of the treasurer/assistant treasurer
informing the Secretary of Finance as the appointing authority, or the
BLGF Executive Director, as may be applicable that he/she is
relinquishing his/her position and the effectivity date of said
resignation;
ii. the acceptance of resignation in writing by the Secretary of Finance,
or the BLGF Executive Director, as may be applicable which shall
indicate the date of effectivity of the resignation; and
iii. proof of notice of the acceptance of resignation to the treasurer/
assistant treasurer.
k. A treasurer/assistant treasurer under investigation, except those prohibited
by law (under Sec. 12 RA 3019 of the Anti-Graft and Corrupt Practices
Act), may be allowed to resign pending decision of his/her case without
prejudice to the continuation of the proceedings until finally terminated.
Under RA 3019, public officers charged of bribery and any crimes are
not allowed to retire or resign pending investigation.
2. Dismissal
Dismissal is the termination or the act of being discharged from employment or
service for cause. It is the definite severance of an officer or employee from
government service on the initiative of the agency or office, CSC, Ombudsman, or
regular courts.
(Sec. 105, CSC MC No. 24, s. 2017)
The implementation of a dismissal order for a treasurer or assistant treasurer shall
be the responsibility of the Secretary of Finance or the BLGF Executive Director,
as may be applicable.
42

3. Dropping from the Rolls and Retirement pursuant to Sec. 106, CSC MC
No. 24, s. 2017
For other modes of separation of a treasurer/assistant treasurer, such as dropping
from the rolls, retirement, or death, a copy of the order of dropping from the rolls
or notice of separation signed by the Secretary of Finance or the BLGF Executive
Director, as may be applicable, stating the date of such separation or death, shall
be submitted by the BLGF to the CSC Field Office concerned within thirty (30)
calendar days from the date of the effectivity of the dropping from the rolls, date of
separation, or death for record purposes.
SECTION 14. PREVENTIVE SUSPENSION OF LOCAL TREASURERS

A. Preventive Suspension Issued by the Office of the Ombudsman
1. Grounds. The Ombudsman may direct the preventive suspension of a
treasurer/assistant treasurer pending an investigation on the following grounds:
a. the charge against such treasurer/assistant treasurer involves
dishonesty, oppression or grave misconduct or neglect in the
performance of duty;
b. the charges would warrant removal from the service; or
c. the respondent’s continued stay in office may prejudice the case filed
against him.
2. Duration. The preventive suspension shall continue until the case is terminated
by the Office of the Ombudsman but not more than six (6) months, without pay,
except when the delay in the disposition of the case by the Office of the
Ombudsman is due to the fault, negligence or petition of the respondent, in which
case the period of such delay shall not be counted in computing the period of
suspension herein provided.
(Sec. 24, R. A. 6770)
3. Entitlement to salaries and back wages. If exonerated, back salaries and
other benefits due the treasurer/assistant treasurer at the rate prescribed for the
position he/she held from the time of his/her preventive suspension until his/her
actual reinstatement shall be paid without deduction. (Edgar R. Del Castillo vs.
CSC, et al., GR No. 112513, 21 August 1997)
B. Preventive Suspension Issued by the DOF or CSC

1. Grounds. Upon petition of the complainant or motu propio, the DOF or CSC
who have concurrent administrative disciplinary authorities may issue an order of
preventive suspension upon service of the formal charge or notice of charge/s, or
immediately thereafter to any treasurer/ assistant treasurer pending an
investigation, if:
43

LTOM, 2ND EDITION
The charge involves dishonesty; oppression; grave misconduct; neglect in the

performance of duty; administrative offenses which are punishable by dismissal
from the service on its second or third offense; or if there are reasons to believe
that the local treasurer/assistant treasurer is guilty of charges which would warrant
his/her removal from the service.
An order of preventive suspension may be issued to temporarily remove the
treasurer/assistant treasurer from the scene of his/her misfeasance, malfeasance or
nonfeasance to preclude the possibility of:
a. exerting undue influence or pressure on the witnesses against
him/her; or
b. tampering with evidence that may be used against him/her.
In lieu of preventive suspension, for the same purpose, the proper disciplining
authority or head of office, may reassign respondent to other unit of the agency
during the formal hearings.
2. Duration. Unless otherwise provided for by law, the disciplining authority may
place the respondent under preventive suspension for a maximum period of ninety
(90) days in the case of national agencies or sixty (60) days in the case of LGUs.
When the administrative case against an officer or employee under preventive
suspension is not finally decided by the disciplining authority within the period of
preventive suspension, he/she shall be automatically reinstated in the service
unless the delay in the disposition of the case is due to the fault, negligence or
petition of the respondent, in which case, the period of delay shall not be included
in the counting of the period of preventive suspension. Any period of delay caused
by motions filed by the respondent shall be added to the period of preventive
suspension. Provided, that where the order of preventive suspension is for a period
less than the maximum period, the disciplining authority undertakes to finish the
formal investigation within the said period and is precluded from imposing
another preventive suspension. Provided, further, that should the respondent be on
authorized leave, said preventive suspension shall be deferred or interrupted until
such time that said leave has been fully exhausted.
3. Entitlement to Salaries and Back Wages. The payment of back salaries
during the period of suspension shall be governed by the following:
a. A declaration by the CSC that an order of preventive suspension is null and
void on its face entitles the treasurer/assistant treasurer to immediate
reinstatement and payment of back salaries corresponding to the period of
the unlawful preventive suspension without awaiting the outcome of the
main case.
b. The phrase “null and void on its face” in relation to a preventive suspension
order, imports any of the following circumstances:
i. The order was issued by one who is not authorized by law.
ii. The order was not premised on any of the conditions under Sec.
26 (A and B) Rule 7, of the Revised Rules on Administrative
Cases in the Civil Service (RRACCs).
44

iii. The order of preventive suspension was issued without a formal

charge or notice of charges.
iv. While lawful in the sense that it is based on the enumerated
grounds, the duration of the imposed preventive suspension has
exceeded the prescribed periods, in which case the payment of
back salaries shall correspond to the excess period only.
4. Reinstatement. A declaration of invalidity of a preventive suspension order not
based on any of the reasons enumerated shall result in the reinstatement of the
treasurer/assistant treasurer. The payment of back salaries shall, however, await
the final outcome of the principal case. If the treasurer/ assistant treasurer is fully
exonerated of the charge/s or when penalty imposed in the principal case is
reprimand, he or she shall be paid such back salaries. Otherwise, no back salaries
shall be awarded.
The phrase “full exoneration” contemplates a finding of not guilty for the offense/s
charged. Downgrading of the charge to a lesser offense shall not be construed as
“full exoneration” within the contemplation of these guidelines.
Even if the respondent treasurer/assistant treasurer be eventually found innocent of
the charge/s proffered against him/her, the same shall not give rise to payment of
back salaries corresponding to the period of preventive suspension in the absence
of any finding of its illegality.
(Rule 7, RRACCS)
5. Claims for salaries during preventive suspension, if exonerated, shall be supported

by the following documents:
a. A certified true copy of the order of exoneration or of the court’s order
dismissing the criminal case against the treasurer/assistant treasurer
absolving him/her;
b. A certified true copy of the authority granted by the department
head for the payment of salary during suspension; or
c. A certified true copy of the President’s order of exoneration
providing for payment of salary during suspension.16
6. Other provisions on Suspension of Local Treasurers and Assistant Local

Treasurers:
a. Any public officer against whom any criminal prosecution under a
valid information pursuant to RA 3019 otherwise known as the Anti-
Graft and Corrupt Practices Act or under the provisions of the Revised
Penal Code on bribery is pending in court, shall be suspended from
office. Should he/she be convicted by final judgment, he/she shall lose
all retirement gratuity benefits under
16 Sec 220, Volume I, Government Accounting and Auditing Manual (GAAM)
45

LTOM, 2ND EDITION
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 during suspension, unless in the meantime administrative
proceedings have been filed against him/her.17
b. The respondent treasurer/assistant treasurer is entitled to back salaries
from the time he/she was dismissed until his/her reinstatement - i.e. for
the period of his/her preventive suspension pending appeal. For the
period of his/her preventive suspension pending investigation, the
respondent is not entitled to any back salaries.18
SECTION 15. ATTENDANCE TO ADMINISTRATIVE, CIVIL

OR CRIMINAL INVESTIGATION OF LOCAL
TREASURERS AND ASSISTANT LOCAL TREASURERS
Absence of a Treasurer or Assistant Treasurer is considered service in regular course under
the following circumstances:
A. Witness in a criminal case. When a Treasurer or Assistant Treasurer is summoned
by the court or is required by lawful authority to render service as a witness in a criminal
case, such service shall be deemed to be of service in the regular course of employment
and the Treasurer or Assistant Treasurer shall be entitled to his/her salary during the
period of such service payable by the office to which he/she pertains, regardless of
whether he/she has served for or against the prosecution in such criminal case [Sec. 226
(a), Vol. I, GAAM]. In case the hearing or trial is conducted outside the LGU where the
Treasurer or Assistant Treasurer is stationed, he/she shall 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 summons of the Court shall
be considered sufficient supporting documentation in lieu of a Travel Order.
B. Witness in his/her own behalf in a criminal or administrative proceeding.
The attendance of a Treasurer or Assistant Treasurer in his/her own behalf, to secure
his/her exoneration from charges or matter alleged against him/her is attendance to
his/her own benefit. If he/she is not under suspension, the time consumed in such
attendance shall be charged to his/her leave, if he/she has any. Upon exoneration,
however, when the case in which he/she is the accused or the respondent is the direct
result of an act performed by him/her in connection with his/her official duties, his/her
absence charged to his/her leave may be readjusted and his/her attendance in court
considered as service in due course. But when the criminal charges filed are not the
direct acts performed by 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. [Sec. 226
(b), Vol. 1, GAAM]
17 Sec. 13, RA 3019 otherwise known as the Anti-Graft and Corrupt Practices Act
18 CSC vs Bersamin, et al. GR No. 187858
46

C. Witness in a civil case between two private parties, and in which the
Government has no interest. A witness is not obliged to attend as such in a civil
action before any court, judge, justice, or other officer out of the province in which
he/she resides, unless the distance be less than fifty (50) kilometers from his/her place of
residence to the place of trial by the usual course of travel. Therefore, a Treasurer or
Assistant Treasurer cited to appear in a civil case between two private parties wherein
the Government has no interest, in order to testify as to knowledge of fact obtained by
him/ her in his/her official capacity, shall not be entitled to salary for absence on account
of such appearance if the distance from his/her place of residence to the place of trial by
the usual course of travel be more than fifty (50) kilometers. If the distance involved is
less than fifty (50) kilometers, 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 private capacity, his/her absence will be chargeable
against him/her without prejudice to his/her right to seek reimbursement from the party
at whose instance he/she testified. If such witness testifies on a case from knowledge or
fact acquired by him/her in his/her official capacity, or to produce official papers or
documents, and the distance between his/her place of residence and the place of trial is
less than fifty (50) kilometers, his/her appearance will be considered service in due
course, but in such a case the province, city or municipality to which he/she pertains
shall collect witness’ fees for his/her appearance under the conditions prescribed by the
Rules of Court. [Sec. 226, (c) Vol. I, GAAM]
SECTION 16. APPROVAL AND GRANT OF APPLICATION

FOR LEAVE OF ABSENCE OF LOCAL TREASURERS
A. The approval of application for leave of Provincial, City and Municipal Treasurers and
Assistant Provincial, City and Municipal Treasurers shall be as follows:
1. All applications for leave of absence, i.e. vacation, sick, maternity/paternity, and
special privilege leave (SPL) and terminal leave of Provincial/City/ Municipal
Treasurer, regardless of duration or period of absence, and Assistant
Provincial/City/Municipal Treasurer, exceeding seven (7) days, shall be approved
by the concerned BLGF Regional Director. In the case of NCR Treasurers, all
applications for leave of absence shall be approved by the BLGF Executive
Director.
2. Where the applicant intends to leave the country, the application for leave and the
issuance of travel authority shall be approved by the BLGF Executive Director,
regardless of the duration, subject to the guidelines set by the DOF and other
existing policies, rules and regulations on foreign travel.
3. Application for leave of Provincial/City/Municipal Treasurer exceeding seven
(7) days, shall be supported by a request from the LCE concerned for the
designation of an Acting or OIC Treasurer. Likewise, the LCE concerned shall
recommend the approval of said application for leave.
47

LTOM, 2ND EDITION
4. Application for leave of absence of Assistant Provincial/City/Municipal Treasurer

for a period of seven (7) days, and below shall be approved by the
Provincial/City/Municipal Treasurer, a copy of which shall be furnished the BLGF
Regional Director for proper information.
B. Provincial/City/Municipal Treasurer and Assistant Treasurer shall be entitled to special
privilege leave (SPL) as mandated under existing laws (Sec. 21, Rule XVI, Omnibus
Rules Implementing Book V of EO No. 292). Likewise, Provincial/City/ Municipal
Treasurer and Assistant Treasurer may avail of paternity leave of not more than seven
(7) days which shall be non-cumulative and non-commutative, immediately before,
during or after the childbirth or miscarriage of their legitimate spouse. (Sec. 20,
Omnibus Rules Implementing Book V of EO No. 292, as amended by CSC
Memorandum Circular No. 41, s. 1998)
1. The SPL to which the Provincial/City/Municipal Treasurer and Assistant
Provincial/City/Municipal Treasurer shall be entitled to are the following:
a. Funeral/Mourning Leave
b. Graduation Leave
c. Enrollment Leave
d. Wedding/Anniversary Leave
e. Birthday Leave
f. Hospitalization Leave
g. Accident Leave
h. Relocation Leave
i. Government Transaction Leave
j. Calamity Leave
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 Treasurer and the Assistant Provincial/ City/ Municipal Treasurer. The
SPL may be availed of by the Provincial/City/ Municipal Treasurer and the
Assistant Treasurer when the occasion is personal to them or that of their
immediate family members.
In addition to the above special privileges, a Provincial/City/Municipal Treasurer
or an Assistant Treasurer may also avail of the Parental Leave to Solo Parents in
accordance with CSC Memorandum Circular No. 08, s.2004. Such leave refers to
leave benefits granted to a solo parent to enable said parent to perform parental
duties and responsibilities, with respect to minor children, where physical presence
is required. The parental leave of seven
(7) days can be availed of every year on a staggered or continuous basis, and is
not convertible to cash unless specifically agreed upon previously, provided the
solo parent has rendered at least one (1) year government service, whether
continuous or broken, reckoned from the effectivity of Republic Act 8972. (“An
Act Providing for Benefits and Privileges to Solo Parents and their Children”, 22
September 2002)
Maternity Leave. Under CSC Memorandum Circular No. 25, s.2010,
qualified female treasurers, regardless of age and civil status, may also
48

avail of the special leave benefits provided for women who have undergone
surgery caused by gynecological disorders, pursuant to the provisions and
implementing rules and regulations of Republic Act No. 9710 (An Act Providing
for the Magna Carta of Women). This special leave may be availed for every
instance of gynecological disorder requiring surgery for a maximum period of two
(2) months per year, with full pay based on her gross monthly compensation,
provided that such treasurer has rendered at least six (6) months aggregate service
in any or various government agencies for the last twelve (12) months prior to
undergoing surgery for gynecological disorder.
2. Whenever a Provincial/City/Municipal Treasurer or an Assistant Treasurer retires,
voluntarily resigns, or is allowed to resign, or is separated from the service
through no fault of his/her own, he/she shall be entitled to the commutation of all
accumulated vacation leave and/or sick leave to his/her credit, exclusive of
Saturdays, Sundays and 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 law. (Sec. 26, Rule XVI, Omnibus Rules
Implementing Book V of EO No. 292, as amended by CSC Memorandum Circular
No. 41, s. 1998)
3. When a Provincial/City/Municipal Treasurer or an Assistant Provincial/ City/
Municipal Treasurer whose leave credits have been commuted following his/ her
separation from the service is re-employed in the Government before the
expiration of the leave 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 balance in his/her new government office.
(Sec. 26, Rule XVI of Omnibus Rules Implementing Book V, E. O. No. 292, as
amended by CSC Memorandum Circular No. 41,
s. 1998)
4. 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 allowed to monetize a minimum of ten (10) days; provided, that at least
five (5) days are retained after monetization and, provided further, that a maximum
of thirty (30) days may be monetized in a given year. (Sec. 22, Rule XVI of
Omnibus Rules Implementing Book V, EO No. 292, as amended by CSC
Memorandum Circular No. 41, s. 1998)
Treasurer may be allowed to monetize fifty percent (50%) or more of his/her
accumulated vacation or sick leave credits for valid and justifiable reasons such as
the following:
a. Health, medical and hospital needs of the Provincial/City/ Municipal
Treasurer or the Assistant Provincial/City/Municipal Treasurer or the
immediate members of his/her family;
b. Financial aid or assistance brought about by force majeure events
such as calamities, typhoons, fire, earthquakes and accidents;
49

LTOM, 2ND EDITION
c. Educational needs of the Provincial/City/Municipal Treasurer or the

Assistant Provincial/City/Municipal Treasurer or the immediate
members of his/her family;
d. Payment for mortgages and loans entered into for the benefit of the
Provincial/City/Municipal Treasurer or Assistant Provincial/
City/Municipal Treasurer or the immediate members of his/her family;
and
e. Extreme financial needs of the Provincial/City/Municipal Treasurer or
Assistant Provincial/City/Municipal Treasurer or the immediate
members of his/her family to fulfil basic needs for food, shelter and
clothing.
6. The monetization of fifty percent (50%) or more of the accumulated leave credits
shall be upon the favorable recommendation of the LCE and subject to availability
of funds. (Sec. 23, Omnibus Rules Implementing Book V, E. O. No. 292, as
amended by CSC Memorandum Circular No. 41, s. 1998)
Treasurer with ten (10) days or more vacation leave credits shall be required to go
on vacation leave whether continuous or intermittent for a minimum of five (5)
working days annually. (Sec. 25, Omnibus Rules Implementing Book V, E. O. No.
292, as amended by CSC Memorandum Circular No. 41, s. 1998)
SECTION 17. AUTHORITY TO TRAVEL ABROAD

AND PARTICIPATE IN TRAINING PROGRAMS
A. The conduct of capacity development programs for local treasurers and their
participation thereof, shall be subject to an authority issued by the BLGF/DOF upon
review and evaluation of the training design submitted by the concerned organizer. The
concerned treasurer, however, should seek permission from the LCE for his/her
attendance. The local treasurer may designate a caretaker of the treasury office, only
with the function of overseeing the day to day operations of the office during his/her
absence.
B. A local treasurer who intends to travel abroad, or leave the country, either on a
personal or official business, shall be required to secure an authority to travel abroad
from the BLGF Central Office, subject to an indorsement by the concerned Regional
Office. (Department Special Personnel Order No. 001.2018, 9 November 2018)
The following documents shall be submitted at least thirty (30) days prior to the
intended schedule of travel:
1. Letter request stating the destination and purpose of travel;
2. Certification that applicant has no pending administrative/criminal
complaint/ case (Issued by the BLGF Central and Regional Office);
50

3. For personal travel abroad, approved leave of absence (CSC Form No. 6) for
the duration of said travel, recommended by the Local Chief Executive and
approved by the BLGF Regional Director/Executive Director;
4. For official travel abroad:
a. Invitation from the concerned event sponsor; or
b. Authority from the LCE for the local treasurer’s participation to the
event;
5. Sworn statement duly notarized indicating the estimated expenses of the
travel and how it will be financed;
6. Sworn statement of sponsoring party in case expenses are not to the account
of the local treasurer.
7. Clearance from money, property and work-related accountabilities (CSC Form
No. 7, s. 2017);
8. Certified true copy of applicant’s latest statement of assets, liabilities and
net worth; and
9. Recommendation of the Municipal Mayor as to who will be designated
as OIC/ICO of the Municipal Treasury Office.
51

CHAPTER
3
SECTION 18. SCOPE AND NATURE
A. Administrative and Technical Supervision by the BLGF.
1. The BLGF shall exercise administrative and technical supervision and
coordination over the treasury and assessment operations of local governments
[Sec. 43 (b), EO No. 127]. It shall provide consultative services and technical
assistance to local treasurers in the implementation of programs, policies and
regulations on local fiscal matters such as local taxation, local revenue
mobilization, and real property assessment as well as administrative matters on the
recruitment, selection and appointment of Local Treasurers and Assistant Local
Treasurers.
2. The functions and authorities of the Secretary of Finance over local treasurers and
assistant treasurers delegated upon the BLGF under Department Special Order No.
01.2018 as provided under Annex 5.
3. Administrative Supervision
a. Process appointments of Local Treasurers and Assistant Treasurers and
other personnel actions such as promotion, designation, detail, secondment,
transfer, retirement, and extension of service, subject to existing CSC rules
and regulations.
b. Act on leave of absence filed.
c. Issuance of Authority for foreign Travel of Local Treasurers and
Assistant Local Treasurers either on Official or Personal purpose.
d. Act on complaints and enforce administrative disciplinary action against
Local Treasurers and Assistant Local Treasurers:
i. Initiate and act on complaints;
ii. Conduct fact-finding and preliminary investigation;
iii. File formal charges, if warranted and authorized by the
Secretary of Finance;
iv. Recommend the imposition of administrative disciplinary
sanctions upon erring treasurers; and
v. Implement decisions/resolutions/orders of judicial and quasi-
judicial bodies against local treasurers.
e. Conduct training programs, seminars, workshops and other allied activities
for the improvement of the administrative skills in the local treasury offices.
52

4. Technical Supervision
a. Supervise and coordinate the conduct of Local Treasury and Assessment
Operations of Provinces, Cities and Municipalities within the region for the
proper implementation of laws, decrees, rules, regulations and
administrative issuances of the DOF;
b. Coordinate the plans, programs and activities of local treasury and
assessment offices in the conduct of tax collection drives and tax
information and education campaigns;
c. Conduct regional training programs, seminars, workshops and other allied
activities for the improvement of the technical skills in the local treasury
offices;
d. Monitor and determine the efficiency and effectiveness of the internal
control system of the office of the Provincial/City/Municipal Treasurer;
e. Monitor the performance of revenue generation in RPT, Business Tax and
non-tax revenues;
f. Conduct revenue and treasury operations evaluation to determine the
compliance by Local Treasurers with applicable laws, rules and regulations;
g. Monitor the implementation by LGUs of national and local tax ordinances
and tax measures; and
h. Review, evaluate, and monitor the timely and accurate submission of LGU
financial and fiscal reports for the purpose of target-setting and policy
formulation.
B. Technical Supervision by Provincial Treasurer Over Municipal and
Component City Treasurers.
1. Municipal Treasury Offices. The Provincial Treasurer shall:
a. Conduct treasury operations evaluation over treasury offices;
b. Monitor all eSRE reports uploaded by municipal treasurers to the eSRE Web
Information System, and shall review, analyze and approve/reject the reports
within fifteen (15) days from the prescribed periods set for the local
treasurers;
c. Exercise the authority to review and examine on a continuing basis real
property tax record to ensure the proper implementation hereof and
determine compliance with existing laws and regulations; (Art. 291, IRR,
Implementing Sec. 200, LGC)
d. Provide technical consultative services such as mentoring, coaching,
trainings, among others; and
e. Perform such other functions as may be provided by law and regulations of
DOF and BLGF.
53

LTOM, 2ND EDITION
2. Component City Treasury Offices. The Provincial Treasurer shall:

a. Provide technical consultative services such as mentoring, coaching,
trainings, among others;
b. Conduct treasury operations evaluation with respect to the imposition,
collection and sharing on tax, sand, gravel and other quarry resources, as
maybe applicable; and
c. Perform such other functions as may be provided by law, and rules and
regulations of DOF and BLGF.
SECTION 19. FISCAL PERFORMANCE MONITORING OF LGUS

AND LOCAL TREASURERS
A. Conduct of Local Treasury Operations Evaluation
1. The BLGF shall regularly conduct efficient and effective evaluations of local
treasury operations of all provinces, cities and municipalities to ensure compliance
with applicable laws, rules and regulations, and to provide the necessary technical
assistance for the purpose.
2. The BLGF Central Office shall conduct local treasury operations evaluation
within Metro Manila and other LGUs outside Metro Manila, when necessary.
3. In the case of the Regional Offices, evaluation shall be conducted within the
provinces and cities, including municipalities in coordination with the Province.
B. Local Government Unit (LGU) Fiscal Sustainability Scorecard (FSS)
1. In order to improve the revenue collection efficiency of all LGUs, optimize their
income generation mandates under the LGC, enjoin good fiscal governance at all
levels, and promote openness and transparency in local fiscal and financial
management, the LGU FSS is established as per Department Order No. 075.2018
dated 20 December 2018 to be the regular evaluation and assessment tool of the
Bureau for the LGUs. The LGU FSS is issued in order to: (1) regularly assess
individual LGU fiscal and financial performance;
(2) provide comprehensive metrics and data analytics on local finance; (3) support
credit financing assessment; (4) assist in local and national policy formulation; and
(5) encourage the development of appropriate rewards system.
2. The LGU FSS shall cover all provinces, cities and municipalities, and shall be
regularly developed and updated by the BLGF as part of its regular programs to
build and sustain good fiscal governance by LGUs.
3. The primary data sources shall be the SRE and QRRPA reports submitted by the
Local Treasurers and Assessors, respectively. Additional official references shall
be considered in regard to benchmarks and reporting
54

compliance requirements, such as population data and growth rate , SMV

ordinance, among others.
4. The Local Government Financial Performance Management System (LGFPMS)
prescribed by the BLGF under Memorandum Circular (MC) No. 16-2015, dated
19 June 2015, shall serve as a guide in establishing a fiscal and financial
performance framework in processing the LGU FSS. (Annex 5)
5. The parameters for evaluation for the Financial or Quantitative Indicators and for
Non-Financial or Qualitative Indicators are discussed in details in Annex 6.
C. Performance Standards for Local Treasurers and Assistant Local Treasurers
1. The Performance Standards and Evaluation System for Local Treasurers referred
to as “Performance Standards” is established to set the criteria and system on the
regular performance appraisal of Local Treasurers and Assistant Local Treasurers
with the end goal of evaluating the level of competency, professionalism and
productivity of all Local Treasurers. This is to ensure that their knowledge, skill
sets, and strategies are attuned to the strategic directions and priorities, particularly
on local government fiscal and financial management, of the Department of
Finance.
2. The Performance Standards shall be an integral part of the human resource
management and development strategy of the Department to build and sustain a
results-oriented performance and professional culture among Local Treasurers and
Assistant Local Treasurers. As such, it shall be used as basis for purposes of
appointment and other personnel action, such as promotion, renewal of
designation, and extension of service, accountability assessment, awards and
recognitions, capacity building interventions, among others, pursuant to existing
rules and regulations.
3. There shall be a regular monitoring and performance evaluation of all Local
Treasurers and Assistant Local Treasurers, to be based on objectively verifiable
indicators and established guidelines, supported by appropriate management and
information systems, and to be undertaken by the BLGF in a transparent,
impartial, open, and synchronized process. Local Treasurers and Assistant Local
Treasurers who fail to meet the minimum standards shall be given assistance to
improve. If the performance of a Local Treasurer or Assistant Local Treasurer
remains unacceptable, despite the opportunity given, the BLGF shall institute the
appropriate administrative action. In no case shall these performance standards and
guidelines engender solicitation of favors or impose undue patronage on Local
Treasurers, Assistant Treasurers or any officials and employees of the Department.
4. The policy to undertake a regular performance evaluation through Performance
Standards shall apply to all provincial, city, and municipal treasurers and assistant
treasurers, whether permanent or designate.
55

LTOM, 2ND EDITION
5. The parameters for evaluation for the Performance Standards are discussed in
details under Department Order No. 006.2015 dated 20 January 2015 (Annex 8).
SECTION 20. TURN-OVER OF ACCOUNTABILITIES TO THE

INCOMING AND OUT-GOING LOCAL TREASURERS
The following steps and procedures shall be undertaken in the turn-over of accountabilities
between the incoming and outgoing local treasurer due to retirement, resignation, leave of
absence, relief, transfer or detail to other offices:
A. Closing of Books Preparatory to Transfer of Accountabilities
1. Before the transfer of accountabilities is effected, all the books and accounts shall
be completely written up to date, including supplies adjustment, as well as reports
on accountable forms and cashbooks.
2. The cashbooks shall then be totaled and closed as of the date of transfer and ruled
off and certified by the outgoing treasurer, showing the balance as per book and
the amount transferred to his/her successor. The successor shall also certify therein
acknowledging the amount actually received by him/ her from his/her predecessor.
3. All cash and cash items, checks, certificate of time deposit, stock certificates shall
be counted and listed in an inventory showing the denomination of each kind of
money.
4. The inventory of checks shall also show their respective serial numbers, date,
amount and name of the payee and of the bank on which they are drawn.
5. Investment certificates like time deposits, treasury bills and stock certificates shall
be inventoried showing their serial numbers and amounts and kind of investment.
This inventory of cash and other cash items shall be compared with the cashbook
balances.
B. Preparation of Invoice-Receipts
1. The outgoing officer shall prepare the invoice-receipts (please see Attachment
“A”) in quadruplicate covering his/her entire accountability for money, property,
unused accountable forms and unissued blank checks. The accomplished invoice-
receipts shall then be submitted, viz:
a. Provincial/City/Municipal Auditor
b. Incoming Provincial/City/Municipal Treasurer
c. Out-going Provincial/City/Municipal Treasurer
d. Provincial/City/Municipal Treasury Office
Each invoice receipt shall bear the following certificate at the bottom of
each sheet:
56

I hereby certify that I have this day of ,

transferred to my successor, Mr./Ms. the items described above, as of , the date
of transfer of accountabilities.
Outgoing P/C/M Treasurer
Date
I hereby certify that I have this day of , actually

received from my predecessor, Mr./Ms.
all the items described above, as of , the date of transfer
of accountability, except
.
Incoming P/C/M Treasurer
Date
2. In the case of property, complete detailed inventories shall be made on the

regular form prescribed therefor in the Acknowledgment Receipt for Equipment
(ARE). The inventories, appropriately worded and receipted for, shall serve as the
invoice-receipts. The invoice-receipts covering accountable forms shall be made
on the regular form of CRAAF. The various accountable forms in the hands of
other accountable officers, which cannot actually be counted by the incoming
Treasurer shall also be transferred to him/her, supported by the corresponding
RAAF held by accountable officer which were last submitted, duly signed by
them.
3. All other important documents such as stock certificates, certificates of time
deposits, treasury bills, duplicate combination of accountable officers’ safes, etc.,
pertaining to the Office which are not included in the inventory above mentioned
must also be listed and invoiced by the outgoing officer and receipted for by the
incoming officer.
C. Advice of Transfer and Settlement of Account:

Provincial, City and Municipal Treasurers shall advise their corresponding Provincial,
City and Municipal Auditors in advance of the actual date of their relinquishment of
Office due to retirement, resignation, leave of absence, relief, transfer or detail to other
Offices, so as to enable their resident Auditors to give preference to the audit of the
Treasurer’s accounts over other work/ activities and to give such officers an opportunity
to adjust the differences found in the settlement of accounts before actually effecting the
transfer of accountability.
57
LTOM, 2ND EDITION
ATTACHMENT A
INVOICE RECEIPT OF TRANSFER OF ACCOUNTABILITIES

Province/City/Municipality of
I. DEPOSITORY OF ACCOUNTS Amount Total

A. CASH IN TREASURY/CASH IN VAULT
GENERAL FUND Php
TRUST FUND Php
SPECIAL EDUCATION FUND Php
SPECIAL ACCOUNTS (use separate sheet if necessary) Php
Php
B. CASH IN BANK
GENERAL FUND Php
TRUST FUND Php
SPECIAL EDUCATION FUND Php
SPECIAL ACCOUNTS (use separate sheet if necessary) Php
Php
II. INVESTMENT ACCOUNTS
A. CERTIFICATE OF TIME DEPOSITS
Date of Maturity
Placement Security Term/Rate Date Principal
Php
-use separate sheet if necessary-

B. TREASURY BILLS
Date of Placement Term/Rate Maturity

C. STOCK CERTIFICATES
Name of Stock Certificate No. No. of Shares Php Amount

III. ACCOUNTABLE FORMS
A. ACCOUNTABLE FORMS (WITH AND WITHOUT MONEY VALUE)
Serial Numbers
To From
Accountable Form No. 51
Community Tax Certificate (Individual)
Community Tax Certificate (Corporation)
Cash Tickets
Parking Tickets
Other Accountable Forms: (please specify)
58

B. BLANK UNISSUED CHECKS
Servicing Bank Account Number Serial Numbers

GENERAL FUND
TRUST FUND
SPECIAL EDUCATION FUND
SPECIAL ACCOUNTS
IV. OTHERS
A. OUTSTANDING CHECKS
Check Number Payee Amount

GENERAL FUND
TRUST FUND
SPECIAL EDUCATION FUND
SPECIAL ACCOUNTS
CERTIFICATION
I hereby certify that I have this day of I hereby certify that I have this day of
transferred to my successor, actually received from my
Mr./Ms. predecessor,
, all the items described above as Mr./Ms.
, the date of the transfer of , all the items described above as of
accountability. , the date of the transfer of
accountability.
Outgoing Provincial/City/Municipal Incoming Provincial/City/Municipal Treasurer

Treasurer
SIGNED IN THE PRESENCE OF:
COA REPRESENTATIVE BLGF REPRESENTATIVE
(BLGF Memorandum Circular No. 03-2007, 05 March 2007)
59

CHAPTER
ROLES, DUTIES, AND RESPONSIBILITIES
4 OF THE LOCAL TREASURER
SECTION 21. POWERS AND DUTIES OF LOCAL TREASURER

The Local Treasurer shall take charge of the Local Treasury Office and perform the
following duties and functions:
A. Collect all local taxes, fees and charges directly or through their duly authorized
deputies (Sec. 170, LGC);
B. Advise the Governor or Mayor, as the case may be, the sanggunian, and other local
government and national officials concerned regarding disposition of local government
funds, and on such other matters relative to public finance;
C. Take custody and exercise proper management of the funds of the LGU concerned;
D. Take charge of the disbursement of all local government funds and such other funds the
custody of which may be entrusted to him/her by law or other competent authority;
E. Inspect private commercial and industrial establishments within the jurisdiction of the
LGU concerned in relation to the implementation of tax ordinances, pursuant to the
provisions under Book II of the LGC;
F. Maintain and update the tax information system of the LGU;
G. In the case of the Provincial Treasurer, exercise technical supervision over all
treasury offices of component cities and municipalities; and
H. Exercise such other powers and perform such other duties and functions as may be
prescribed by law or ordinance.
(Sec. 470, LGC)
I. Specific Functions
1. Certify as to the Availability of Funds. No money shall be disbursed unless
the local budget officer certifies to the existence of the appropriation that has been
legally made for the purpose, the local accountant has obligated said appropriation,
and the local treasurer certifies the availability of funds for the purpose. 19 It is the
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
local budget officer on the existence of an appropriation for the purpose and the
certification of the local accountant on the obligation for the appropriation.
19 Sec. 344, LGC
60

ROLES, DUTIES, AND RESPONSIBILITIES OF THE LOCAL TREASURER
2. Implement Tax Collection and Enforcement Program. The Local

Treasurer is vested by law to collect and receive all monies accruing to their
respective jurisdictions whether in the form of collectible taxes and other revenues
or trust funds pertaining to other branches or units of government.
3. Prepare and Submit Reports. The Local Treasurer shall prepare and submit
daily report of collections, with the supporting document. Likewise, the Local
Treasurer shall accomplish and submit quarterly reports of Statement of Receipts
and Expenditures (SRE) prescribed under DOF DO No. 034.2014, dated 26 May
2014, and other reports in forms prescribed by the BLGF/DOF.
4. Certify RPT Delinquencies Remaining Uncollected. The provincial, city
or municipal treasurers or his/her deputy shall prepare a certified list of all real
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-
collection or non-payment and shall submit the same to the sanggunian concerned
on or before the thirty-first (31 st) of December of the year immediately
succeeding the year in which the delinquencies were incurred, with a request for
assistance in the enforcement of the remedies for collection provided in the LGC.
(Sec. 269, LGC)
5. Examine the Books of Accounts and Pertinent Records of
Businessmen. The 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, and other pertinent records of any person,
partnership, corporation, or association subject to local taxes, fees and charges in
order to ascertain, asses, and collect the correct amount of the tax, fee, or charge.
Such examination shall be made during 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 accounts of the taxpayer examined.
In case the examination herein authorized is made by a duly authorized deputy of
the local treasurer, the written authority of the deputy concerned shall specifically
state the name, address, and business of the taxpayer whose books, accounts, and
pertinent records are to be examined, the date and place of such examination, and
the procedure to be followed in conducting the same.
For this purpose, the records of the revenue district office of the Bureau of Internal
Revenue (BIR) shall be made available to the local treasurer, his deputy or duly
authorized representative. (Sec. 171, LGC)
6. Designate the Barangay Treasurer as his/her Deputy to Collect Local
Taxes, Fee and Charges. The provincial, city and municipal treasurer may
designate the barangay treasurer as his deputy to collect local taxes, fees or
charges. In case a bond is required for the purpose, the provincial, city or
municipal government shall pay the premiums of the bond that may be required
under the LGC. (Sec. 170, LGC)
61

LTOM, 2ND EDITION
7. Submit Certified Statement Covering Income and Expenditures.

The Local Treasurer shall submit, on or before the fifteenth (15 th) day of July each
year, to the LCE a certified statement covering the income and expenditures of the
preceding fiscal year, the actual income and expenditures of the first two (2)
quarters of the current year and the estimated income and expenditures for the last
two (2) quarters of the current year. All statements of income and expenditure
shall be jointly certified by the Local Treasurer and the Local Accountant.
8. Issue a Certified Statement Covering Actual Income. On or before the fifth
(5th) day of September each year, the City or Municipal Treasurer, jointly with the
City or Municipal Accountant, shall issue a certified statement covering the actual
income of the past year, estimates of income of the current and ensuing fiscal
years from local sources, for the barangay concerned. Based on such certified
statement, the barangay treasurer shall submit, on or before the fifteenth (15th) day
of 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 (b), IRR, LGC]
Upon receipt of the statement of income and expenditures from the barangay
treasurer, the punong barangay shall prepare the barangay budget for the ensuing
fiscal year in the manner and within the period prescribed in the implementing
barangay budget to the sangguniang barangay for enactment. [Art. 423 (c), IRR,
LGC]
9. Keep Full Sets of Secondary Standards for Use in the Testing of
Weights and 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 and measures. These secondary standards shall be compared
with the fundamental standards of the Department of Science and Technology
(DOST) at least once a year. The sealing and licensing of weights and measures
shall be the duty of the Municipal Treasurer and their deputies. In case of
violation, fraudulent practices and unlawful possession or use of instruments of
weights and measures, shall settle an offense involving the commission of fraud
before a case therefore is filed in court, upon payment of a compromise penalty of
not less than Two Hundred Pesos (Php200.00). [Sec. 148 (b), LGC]
10. Register in a Book All Branded and Counter Branded Animals. On
cattle registration, the Municipal Treasurer shall register in a book properly
prepared and kept for the purpose, all branded and counter branded animals
presented for registry, and shall enter the name and residence of the owner, and the
class, color, sex, age, brand, knots of radiated hair and other marks of
identification of the cattle registered. The original registry entry and the copy
thereof issued as a certificate of ownership shall be signed by the owner and the
Municipal Secretary.20
20 Sec. 517, Revised Administrative Code of the Philippines
62

Upon every transfer of large cattle, the Municipal Treasurer shall issue to the
purchaser of the animal a certificate of transfer showing the name and residence of
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
number and the name of municipality which issued the certificate.
11. Ensure 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 Application for the Termination or
Retirement of the Business. The Local Treasurer shall ensure that the
payment of taxes of a business is not avoided through simulation of the
termination or retirement thereof. For this purpose, the Local Treasurer shall
observe as follows:
a. Assign every application for the termination or retirement of a business to an
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 finds that the business is simply placed under a new name,
manager and/or a new owner, the Local Treasurer concerned shall
recommend to the LCE for the disapproval of the application for
termination or retirement of the 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
b. 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 for the transfer to him/her of the business if there is an existing
ordinance prescribing such transfer tax.21
12. Attend Sessions of the Sanggunian. The Local Treasurer, when required
and upon prior approval of the LCE, shall attend the sessions of the sanggunian.
[Sec. 470(e), LGC]
13. Exercise Such Other Powers and Functions and Perform Such Other
Duties and Responsibilities. The Local Treasurer shall exercise such other
powers and functions and perform such other duties and responsibilities as may be
prescribed by law or ordinance, as follows:
a. Remittance of statutory obligations to the BIR; the Government Service
Insurance System (GSIS); Pag-ibig; PhilHealth obligations and share of
Metro Manila Development Authority (MMDA) for LGUs in Metro Manila.
b. Deputies of the National Government Alien Registration Fees.
c. Members of the following Local Committees and Boards:
i. Local Finance Committee
21 Art 241, IRR, LGC
63

LTOM, 2ND EDITION
ii. Local School Boards22

iii. Appraisal Committee (for purposes of expropriation and purchase of
real property)
d. In accordance with DBM guidelines, certify, along with the local Budget
Officer, Planning Development Officer and the Accountant, the Budget of
Expenditures and Sources of Financing to support the preparation of the
LGU’s annual budget which should include, among others, the
Programs/Projects/Activities (PPAs) on Gender and Development (GAD)
pursuant to RA No. 7192,23 RA No. 971024 and Philippine Commission on
Women (PCW)-Department of Interior and Local Government (DILG)-
DBM-NEDA JMC No. 2016-01 dated 12 January 2016.25
e. The local treasurer must ensure that the requirements of Sec. 13 of RA
10173 (Data Privacy Act of 2012) and Sec. 5 of its Implementing Rules and
Regulations are observed. Specifically, if needed, the processing of personal
information will only be done to carry out the functions of public authority
as provided for by the LGC.
The principles of transparency, legitimate purpose and proportionality must
be observed in undertaking the publication of List of Delinquency in the
payment of the Real Property Tax and in Advertisement and Sale under
Secs. 254 and 260, respectively, of the LGC.
In order to protect the rights of the taxpayers, the local treasurer must see to
it that no personal data are included in all publications of notices.
J. Role of the Local Treasurer in Local Government Enterprise Operations.
The local treasurer of the LGU operating a public enterprise shall have the
following functions in its establishment and operations:
1. Advise the LCE, the sanggunian, in the management of the public enterprise
on its financing aspects;
2. Advise the sanggunian in the enactment of ordinances on public enterprises,
especially in relation to their financial management;
3. Take charge of the collections and take custody of funds of all government
enterprises;
NOTE
The foregoing provisions of RA No. 7160 or the LGC state clearly that the
collection of local taxes, fees and charges is the duty and function of the local
treasurer, thus, primarily accountable therefor. However, considering the
multifarious duties and functions of the local treasurer and the impossibility
22 Sec. 98 (a), LGC

23 Women in Development and Nation Building Act
24 The Magna Carta of Women
25 Amendments to Philippine Commission on Women-DILG-DBM-NEDA JMC No. 2013-01:Guidelines on the Localization of the
Magna Carta of Women
64

NOTE
of being able to attend to all taxpayers coming to the treasury office, the aforecited
provisions of the same Code likewise allow the local treasurer to authorize deputies
to perform such collection function. This goes without saying that the deputies to
be authorized must be permanent appointees in the Local Treasury Office and
properly bonded. It is very important that anyone deputized by the local treasurer
to collect must be under the direct supervision of said local official being the
ultimate accountable officer for local funds. (BLGF 2nd Indorsement, 19 December
2010)
Accepted definition of a duly authorized deputy is that “a person who is given the
authority to stand in the place of another”. Such authorization shall be expressly
detailed in writing in order to establish properly the duties/ responsibilities of the
person acting as deputy. xxx.
xxx... the primary mandate of the City Treasurer is the custody of and exercise of
proper management of the funds of the local government unit concerned. This
includes collections received from its economic enterprises’ operations. Therefore,
he should have supervision and monitoring of treasury operations since he is the
primary accountable officer for all funds received as well as the usage of all
accountable forms issued by the City. (COA RO No. XI, AOM No. 2017-024, 15
December 2017)
4. Ensure that payments are made on duly certified and approved disbursement
vouchers;
5. Advise the LCE of delinquencies of government enterprise clientele for
purposes of enforcing sanctions and taking the necessary remedial measures;
6. Recommend qualified persons for designation as collectors;
7. Maintain records of payments of market stall holders and of other government
enterprise’s lessors;
8. Prepare periodic financial reports for each government enterprise as required
by BLGF rules and regulations;
K. Duties and Responsibilities of Local Treasurers Relative to Credit
Financing. Local Treasurers have the following duties and responsibilities that relate
to the powers of LGUs to use credit financing, indebtedness and alternative sources of
funds:
1. Act as the custodian of all funds directly released to the LGU from the proceeds of
grants and from loans, credits and other forms of indebtedness, as well as income
and express profits derived from the operations of the projects financed from them.
He/she shall deposit these funds in a separate depository account in the name of the
LGU with banks, preferably government owned, located in or nearest to the area of
jurisdiction of the LGU;
65

LTOM, 2ND EDITION
2. Prepare the required reports of checks issued, disbursements and other

accountabilities;
3. In coordination with other LGU official concerned, ensure that the debt servicing
for the LGU credit does not exceed twenty percent (20%) of its annual regular
income for each year until the loan is fully paid [Sec. 324 (b), LGC];
4. Pay or amortize loans, including all interests incurred, as appropriate from the
income of the projects or services and/or from the regular income of the LGUs
until fully paid; and
5. Upon authorization of the sanggunian concerned, Local Treasurers shall:
a. Establish a Sinking Fund for the re-payment of bond issues or maintain Trust
Funds for the purpose;
b. Maintain special accounts in the General Fund for loans, interest, bond
issues, and receipts arising from BOT transactions, such as toll fees,
charges, and other mandatory contributions for specific purposes (Sec. 313,
LGC);
c. Maintain separate records of funds received for projects financed by
proceeds of loans, credits, grants, and other forms of financing to keep track
of the cash flow of the project fund; and
d. If required, provide financial data about the LGU that may be needed
in relation to its availment of the funding sources and mechanisms.
The Assistant Local Treasurer shall have the following functions and responsibilities:
A. The assistant local 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
notices and notifications to those delinquent in the payment of real property tax and
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]
B. In case of the absence of the Local Treasurer, the Assistant Local Treasurer may
automatically perform the functions of the former, as provided under Sec. 10.a hereof.
66

SECTION 22. THE LOCAL TREASURER’S ROLE IN BOARDS

AND COMMITTEES CREATED PURSUANT
TO THE LGC AND OTHER LAWS
A. Local Finance Committee (LFC)
1. It is mandatory for every province, city, or municipality to create an LFC
which shall be composed of the following:
a. Local Treasurer
b. Local Planning and Development Officer
c. Local Budget Officer
2. The LFC shall exercise the following functions:
a. Determine the income reasonably projected as collectible for the
ensuing fiscal year;
b. Recommend the appropriate tax and other revenue measures or borrowings
which may be appropriate to support the budget;
c. Recommend to the LCE concerned the level of the annual expenditures and
the ceilings of spending for economic, social and general services based on
the approved local development plans;
d. Recommend to the LCE concerned the proper allocation of expenditures for
each development activity between current operating expenditures and
capital outlays;
e. Recommend to the LCE concerned the amount to be allocated for capital
outlay under each development activity or infrastructure project;
f. Assist the sangguniang panlalawigan in the review and evaluation of budget
of component cities and municipalities in the case of provincial finance
committee, the barangay budgets in the case of city or municipal finance
committee, and recommend the appropriate action thereon;
g. Assist the sanggunian concerned in the analysis and review of annual
regular and supplemental budgets of the respective LGU to determine
compliance with statutory and administrative requirements; and
h. Conduct semi-annual review and general examination of cost and
accomplishments against the performance standards applied in undertaking
development projects. A copy of this report shall be furnished the LCE and
the sanggunian concerned, and shall be posted in conspicuous and publicly
accessible places in the Provinces, Cities, Municipalities and barangays.
(Sec. 316, LGC)
67

LTOM, 2ND EDITION
B. Local School Boards (LSB). There shall be established in every province, city, or
municipality a provincial, city, or municipal school board. The composition of the LSB
shall be as follows:
1. The Provincial School Board shall be composed of the governor and the division
superintendent of schools as Co-Chairpersons; the chairman of the education
committee of the sangguniang panlalawigan, the Provincial Treasurer, the
representative of the pederasyon ng mga sangguniang kabataan in the sangguniang
panlalawigan, the duly elected president of the provincial federation of parents-
teachers associations, the duly elected representative of the teachers’ organizations
in the province, and the duly elected representative of the non-academic personnel
of public schools in the province, as members;
2. The City School Board shall be composed of the city mayor and the city
superintendent of schools as Co-Chairpersons; the chairperson of the education
committee of the sangguniang panlungsod, the City Treasurer, the representative
of the pederasyon ng mga sangguniang kabataan in the sangguniang panlungsod,
the duly elected president of the city federation of parents-teachers associations,
the duly elected representative of the teachers’ organizations in the city, and the
duly elected representative of the non-academic personnel of public schools in the
city, as members; and
3. The Municipal School Board shall be composed of the municipal mayor and the
district supervisor of schools as Co-Chairpersons; the chairman of the education
committee of the sangguniang bayan, the Municipal Treasurer, the
representative of the pederasyon ng mga sangguniang kabataan in the sangguniang
bayan, the duly elected president of the municipal federation of parent-teacher
associations, the duly elected representative of the teachers’ organizations in the
municipality, and the duly elected representative of the non-academic personnel of
public schools in the municipality, as members. [Sec. 98 (a) and (b), LGC]
The performance of the duties and responsibilities of the abovementioned
officials in their respective LSBs shall not be delegated. [Sec. 98 (d), LGC]
4. The Provincial, City and Municipal School Boards shall have the following
functions:
a. Determine, in accordance with the criteria set by the Department of
Education (DepEd), the annual supplementary budgetary needs for the
operation and maintenance of public schools within the province, city, or
municipality, as the case may be, and the supplementary local cost of
meeting such needs, which shall be reflected in the form of an annual school
board budget corresponding to its share of the proceeds of the special levy
on real property constituting the Special Education Fund (SEF) and such
other sources of revenue as the LGC and other laws and ordinances may
provide;
68

b. Authorize the Provincial, City or Municipal Treasurer, as the case may be,
to disburse funds from the SEF pursuant to the budget prepared and in
accordance with existing rules and regulations;
c. Serve as an advisory committee to the sanggunian concerned on educational
matters such as, but not limited to, the necessity and uses of local
appropriations for educational purposes;
d. Recommend changes in the names of public schools within the territorial
jurisdiction of the LGU for enactment by the sanggunian concerned (Sec.
99, LGC); and
e. The Co-Chairpersons and Members of the Provincial, City or Municipal
School Board shall perform their duties as such without compensation or
remuneration. Members thereof who are not government officials or
employees shall be entitled to necessary travelling expenses and allowances
chargeable against the funds of the LSB concerned, subject to existing
accounting and auditing rules and regulations. (Sec. 101, LGC)
C. Bids and Awards Committee (BAC).
In order that local treasurers and assistant local treasurers give utmost priority to their
primary duties in revenue generation, resource mobilization, disbursement, and fund
management, as provided under the LGC, and inasmuch as RA 9184 (Government
Procurement Reform Act) do not require their mandatory membership in the BAC and
the Technical Working Group (TWG), relative to the procurement of goods, consulting
services and infrastructure projects, it is directed that all local treasurers and assistant
local treasurers, whether appointed or designated, shall be prohibited from becoming
regular members of the BAC and TWG of LGUs. However, they may serve as
provisional members when the local treasury office is the end-user of the goods, services
and projects that may be subject of procurement.
To ensure that accountabilities in procurement and disbursement functions are properly
defined, all local treasurers and assistant local treasurers shall ensure appropriate internal
control therefor, particularly in certifying the availability of funds before money shall be
disbursed, including those for payment of procured goods, service and projects.
(DOF Department Order No. 042.2019 dated June 12, 2019)
D. Committee on Appraisal
The City or Municipal Treasurer shall act as Chairman relative to distraint of personal
property, with a representative of the Commission on Audit and the city or municipal
assessor as member. (Sec. 175 (e), LGC)
69

LTOM, 2ND EDITION
SECTION 23. TREASURER’S ROLE IN NATIONAL AND LOCAL

ELECTIONS PURSUANT TO THE OMNIBUS
ELECTION CODE
A. Local Treasurers shall comply with applicable Resolutions issued by the
COMELEC every election period on election duties and functions, personnel action,
leave of absence, travel, among others, and shall be guided by the applicable rules
and regulations of the DOF and the BLGF.
B. The Municipal Treasurer shall be a member of the Municipal Board of Canvassers.
OIC Municipal Treasurer may not be appointed thereto. In the case of
Provincial/City Board of Canvassers, the Provincial or City Treasurer may be
appointed thereto as substitute members in case of non-availability, absence,
disqualification due to relationships or incapacity for any cause of the regular
member thereof.
70

CHAPTER
BONDING OF LOCAL TREASURERS
5 AND OTHER LGU ACCOUNTABLE OFFICERS
SECTION 24. LEGAL BASIS FOR THE BONDING OF LOCAL TREASURERS

AND OTHER LGU ACCOUNTABLE OFFICERS
Treasury Circular No. 02-2009 dated 06 August 2009, and revised Treasury Order Nos. 01-
95 and 01-99 issued by the Bureau of the Treasury (BTr), pertaining to regulations
promulgated for the effective bonding of accountable officers pursuant to the provisions of
the Public Bonding Law (PBL).
SECTION 25. GUIDELINES ON BONDING OF LOCAL TREASURERS

AND ACCOUNTABLE OFFICERS
A. Bonding of Local Treasurers and Accountable Officers.
1. Every officer of the LGU whose duties permit or require the possession or custody
of local funds shall be properly bonded, and such officer shall be accountable and
responsible for said funds and for the safekeeping thereof in conformity with the
provisions of law. [Sec. 305 (f), LGC] Each accountable officer whose total cash
accountability is not less than Php5,000 shall be bonded. The amount of bond
shall depend on the total accountability of the officer as fixed by the HoA. An
official or employee who has both money and property accountability shall be
bonded only once to cover both accountabilities, but the amount of bond shall be
in accordance with the Schedule issued by the BTr. (COA Circular No. 2006-005,
dated 13 July 2006)
2. Every officer, agent and employees of the Government of the Philippines or of the
companies or corporations of which the majority of the stock is held by the
National 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, custody or control of funds or properties for which he/she
is accountable, be deemed a bondable officer and shall be bonded or bondable and
his/her fidelity insured.
A Barangay Treasurer shall be bonded in an amount of accountability to be
determined by the Sangguniang Barangay but the amount of maximum bond shall
not exceed Php10,000.00 as authorized by the LGC or at an amount which may or
hereinafter be prescribed by any other law, premium for which shall be paid by the
Barangay. (Sec. 4, Treasury Circular No. 02- 2009, 06 August 2009)
3. All Heads of Agencies shall upon appointment or lawful accession by any
accountable public officer to a bondable position or office pertaining to their
respective jurisdiction or separation therefrom of any such public officer, notify in
writing the Treasurer of the Philippines (TOP) through the Bureau of the Treasury
(BTr) District/Provincial Office (DO/PO) having jurisdiction
71

LTOM, 2ND EDITION
over the agency/office/Government Owned and Controlled Corporation

(GOCC)/LGU/State University and College (SUC) within 5 days from such
appointment, lawful accession or separation and submit the required application
for bond or cancellation thereof, as applicable. (Local Treasury Circular No. 02-
2009, Sec. 6.2)
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,
SUCs, heads of LGUs, Provincial and Local Treasurers and other officials
concerned. (Local Treasury Circular No. 02-2009, Sec. 6.3)
B. Procedure for Bonding Application.
1. The applicant shall accomplish in duplicate General Form (GF) Nos. 57A
(Request Form) and 58A (Application Form), copies of which can be secured from
BTr DOs/POs GF No. 58A and shall be subscribed and sworn to before any officer
authorized to administer oath, attaching therewith two
(2) passport size 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 following:
a. Latest SALN
b. List of bondable public officers certified by the agency officer in charge of
Administrative and/or Finance Department, Service, Division or unit (Form
Annex D of TC No. 02-2009)
2. The Request and Application Forms, together with required supporting documents,
shall be filed at the BTr DOs/POs having jurisdiction over the agency for
verification of the following:
a. If GF Nos. 57A and 58A have been properly accomplished and in order;
b. If the required supporting documents are complete and in order;
c. If the name of the applicant appears on the list of bondable public
officers submitted by the agency; and
d. If the applicant is a safe and conservative risk in accordance with Sec. 320
of the PBL.
3. In case of non-compliance with the aforementioned documents, the request and
application form shall be returned to the applicant for necessary correction and/or
compliance.
4. If documents are found to be complete and in order, the applicable bond premium
shall be assessed and corresponding authority to accept payment (ATAP) shall be
issued to the applicant for the payment of bond to the Authorized Government
Depository Bank (AGDB) where the TOP has a deposit account.
(Treasury Circular No. 02-2009, 06 August 2009)
72

BONDING OF LOCAL TREASURERS AND OTHER LGU ACCOUNTABLE OFFICERS
SECTION 26. SCHEDULE OF CASH ACCOUNTABILITY

AND THE CORRESPONDING BONDS
A. Amount of Bond.
The amount of bond shall be based on the total accountability (cash, property and
accountable forms) of the accountable public officer as determined by the Head of
Agency (HoA). Provided, the individual maximum accountability of each accountable
public officer shall not exceed One Hundred Million Pesos(Php100M).
However, the HoA may assign to other public officers the excess accountability for
which separate Fidelity Bond shall be secured. (Sec. 5.1, Treasury Circular No. 02-
2009)
B. Authority to Fix Schedule of Premium.
The TOP with the approval of the Secretary of Finance shall fix and, from time to time,
review the uniform rate of the bond premium chargeable for insurance under the PBL.
(Sec. 5.2, Treasury Circular No. 02-2009)
C. Rate of Premium.
The rate of premium of the Fidelity Bond is equal to 1.5% of the amount of bond but
shall not be less that Php150.00. The Revised Schedule of Premium Rates (please refer
to the table below) shall form an integral part of Treasury Circular 02-2009 until
amended or revised. (Sec. 5.3, Treasury Circular No. 02-2009)
1. CASH ACCOUNTABILITY
Minimum Cash Maximum Cash

Amount of Bond Bond Premium
Accountability Accountability
Bond Premium shall

75% of their Total
not be less than
5,000.00 9,000.00 Cash Availability
Php 150.00
9,001.00 12,000.00 9,000.00 150.00

12,001.00 15,000.00 11,250.00 168.75
15,001.00 18,000.00 13,500.00 202.50
18,001.00 21,000.00 16,750.00 251.25
21,001.00 25,000.00 18,900.00 283.50
25,001.00 30,000.00 22,500.00 337.50
30,001.00 35,000.00 26,250.00 393.75
35,001.00 40,000.00 30,000.00 450.00
40,001.00 50,000.00 37,500.00 562.50
50,001.00 60,000.00 45,000.00 675.00
60,001.00 80,000.00 60,000.00 900.00
80,001.00 100,000.00 75,000.00 1,125.00
100,001.00 250,000.00 100,000.00 1,500.00
250,001.00 500,000.00 225,000.00 3,375.00
500,001.00 750,000.00 350,250.00 5,253.75
750,001.00 1,000,000.00 500,000.00 7,500.00
73

LTOM, 2ND EDITION
Minimum Cash Maximum Cash

Amount of Bond Bond Premium
Accountability Accountability
1,000,001.00 2,500,000.00 750,000.00 11,250.00
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
25,000,001.00 75,000,000.00 4,000,000.00 60,000.00
75,000,001.00 100,000,000.00 5,000,000.00 75,000.00
2. PROPERTY ACCOUNTABILITY
a. Government Securities 30% of their total value x 1.5% = Premium
b. Equipment 30% of their total value x 1.5% = Premium
c. Supplies and Materials 30% of their total value x 1.5% = Premium
3. FOR ACCOUNTABLE FORMS
a. Internal Revenue Stamp
b. Documentary Stamp
c. Customs Documentary Stamp
d. Cash Tickets 10% of their total
value rounded off
e. Postage and other Stamp Stocks to the nearest
X 1.5% = Premium
f. Cattle Registration Certificates hundred
g. Marriage Certificates
h. Auto Driver Certificates
i. Motor Vehicle License
j. Other Accountable Forms
having face value
SECTION 27. RENEWAL

The Fidelity Bond of an accountable officer shall be renewed before the expiration of the
bond. The application for renewal of bond shall be accomplished by using General Form
57A and accompanied by the following:
A. List of bonded public officers subject for renewal certified by the agency official in
charge of Administrative and/or Finance Department, Service, Division or Unit;
B. Agency certification that the bond applicant has no pending administrative and/ or
criminal case (Annex E). For a bond applicant with pending administrative and/or
criminal case, copies or pertinent pleadings, orders and resolutions filed or issued
by the disputing parties, prosecutory or investigatory offices and judicial
bodies shall be attached to the bond application;
C. Copy of the latest BTr approved bond or copy of the Confirmation Letter; and
D. Latest Sworn SALN (7.2 - 7.2.3, Treasury Circular No. 02-2009, 06 August
2009)
74

SECTION 28. INCREASE IN THE AMOUNT OF ACCOUNTABILITY

A. Any increase in the amount of accountability will have a corresponding increase in the
premium of the bond.
B. The applicant shall accomplish and submit GF 57A to the concerned DO/PO together
with the following:
C. Special Order increasing the amount of accountability; and
1. List of bonded public officers certified by the agency official in charge of:
Administrative and/or Finance Department, Service, Division or Unit.
2. The amount of bond premium shall be computed based on the increased amount
of bond. The bond shall take effect upon the time of payment of premium on the
new bond application.
D. The Chief Treasury Operations Officer (CTOO) II of the BTr concerned shall cancel the
previously assigned risk number to the applicant and issue a new risk number to the new
bond application. (7.3 Treasury Circular No. 02-2009, 06 August 2009)
SECTION 29. ACCOUNTABLE OFFICERS CONSIDERED

UNSAFE RISKS
The bond application shall be evaluated to determine if the applicant is a safe and
conservative risk in accordance with Sec. 320 of the PBL. When there is basis to prove that
the applicant public officer is an unsafe risk owing to character, association or habits, the
following procedures shall be followed:
A. The bond application shall be transmitted to the RD with the recommendation for
disapproval stating the basis therefor. When the recommendation is affirmed by the RD,
the disapproval shall be communicated in writing to the HoA of the applicant public
officer stating therein the factual and legal basis for such disapproval.
B. The disapproval/decision of the RD maybe appealed by the concerned HoA by filing a
letter of appeal with the TOP within fifteen (15) days from the receipt of such
disapproval/decision. The letter of appeal shall state clearly and distinctively the grounds
and arguments of the appeal. A copy of the assailed written action/ decision and
disapproved bond application and its supporting documents shall be attached to the letter
of appeal. The letter of appeal shall likewise be accompanied by a postal money order or
MDS check in the amount of Php500.00 as appeal fee payable to the TOP.
C. Within 5 days from receipt of the letter of appeal and the appeal fee, the TOP shall
require the RD to elevate the entire records relating the disapproved bond application.
The TOP shall have fifteen (15) days from receipt of the records from the RD to resolve
the appeal.
D. The decision of the TOP shall be final, executory and not appealable. (7.1.8, Treasury
Circular No. 02-2009, 06 August 2009)
75

LTOM, 2ND EDITION
SECTION 30. CANCELLATION OF BOND

The HoA 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 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 present position. They shall likewise request for the cancellation of the
bond and shall accomplish GF Nos. 57A, items 10-16. (7.4 Treasury Circular no. 02-2009,
06 August 2009)
SECTION 31. EFFECT OF CANCELLATION

The cancellation of the bond for any cause allowed under Treasury Circular No. 02- 2009
before 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 accountable public officer whose bond is canceled shall not be transferrable and
not refundable. (4.12, Treasury Circular No. 02-2009)
SECTION 32. THE FIDELITY FUND

A. All bond premium collected by the BTr shall constitute the Fidelity Fund. The Fund
shall answer for defalcations, shortages and unrelieved accountability after all possible
means of recovery of the amount from the accountable official or employee have been
exhausted or his/her insolvency is declared by a competent court. It shall be available for
the payment of court fees incident to civil proceedings to recover the sum lost.
B. The Fidelity Fund shall not be used for the following:
1. To replace fines imposed on bonded officials/employees as a result of
criminal conviction for violation of the Revised Penal Code or any penal law;
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
3. To refund the accountability of a bonded official/employee found short in
accountability but not removed or relieved of the duties. (Sec. 8.0, Bureau of the
Treasury Order No. 01-95)
SECTION 33. EXTENT OF LIABILITY

A. Primary Liability. The head of any Government agency at all levels, whether
national, corporate or local is primarily responsible and accountable for all
government funds and property pertaining to his agency. (Sec. 6.1, Treasury
Circular No. 02-2009)
76

B. Effect of Failure to Notify. Failure on the part of the HoA to make the required
notification to the TOP through the concerned 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 of
such failure. (Sec. 6.4, Treasury Circular No. 02-2009)
SECTION 34. VALIDITY OF FIDELITY BONDS

A. An accountable public officer shall be considered bonded/insured with the Fidelity Fund
upon payment of the bond premium. The Fidelity Bond shall be valid and effective at
the time of payment and receipt of bond premium by the AGDB. The accountable public
officer shall submit to the BTr DO/PO a copy of the AGDB validated deposit slip and
ATAP as proof of payment of bond premium, after which the confirmation letter shall be
issued. (4.9, Treasury Circular No. 02-2009, 06 August 2009)
B. An approved Fidelity Bond shall be non-transferable and personal to the accountable
public officer and shall remain valid and effective for one (1) year from the time of
payment 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 is holding such position for which he was bonded. Failure to renew shall consider
such bond as automatically cancelled and shall have no legal effect. (Treasury Circular
No. 02-2009, Sec. 4.10)
SECTION 35. ADJUDICATION AND PAYMENT OF CLAIMS

AGAINST THE FIDELITY FUND
A. Application for Relief from Accountability - When loss of public funds or
property 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 control thereof shall immediately notify the COA or the agency auditor
concerned, and within thirty (30) days or such longer period as the Commission or
auditor may in the particular case allow, shall present his application for relief with the
available supporting evidence.
B. Effect of Relief from Accountability by COA - The relief from accountability of
the accountable public officer granted by the COA shall relieve the agency from
responsibility for the loss or damage to public funds or property.
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.
D. Claims - Any and all claims against the Fidelity Fund shall be filed as a money claim
with COA, with copy to BTr together with the evidence relating thereto. Claims
approved by the COA shall constitute a legal claim against the Fidelity Fund.
77

LTOM, 2ND EDITION
E. Requirements for Payment of Adjudicated Claim - The agency shall file a claim
for payment from the Fidelity Fund with the BTr, attaching the favorable findings of
COA. The BTr shall process the claim in accordance with existing budgeting,
accounting and auditing rules and regulations.
1. In case of defalcation, shortages and unrelieved losses in the account of
bonded public officer, the claim shall be supported by the following documents:
a. Agency and COA findings and recommendation on the defalcation,
shortages and unrelieved accountability;
b. Latest SALN of the bonded official/employee;
c. Proof of current and subsisting bond and payment of bond premium; and
d. Other document/s which may be required by the BTr.
2. In case of proven shortages and defalcation, the public officer responsible thereto
should be removed or relieved of his duties without prejudice to civil, criminal or
administrative cases to be instilled.
3. Only approved claims shall be paid from the Fidelity Fund. (8 - 8.5.3, Treasury
Circular No. 02-2009, 06 August 2009)
F. Penal Clause
Unjustified failure of an accountable public officer to comply with the requirements to
apply the Fidelity Bond pursuant to Treasury Circular No. 02- 2009 and the PBL shall
subject the responsible official/employee to applicable criminal, and/ or administrative
liability under the Revised Penal Code and PD 1445. (9.0 Treasury Circular No. 02-
2009, 06 August 2009)
78

FORMS AND ANNEXES
79

LTOM, 2ND EDITION
FORMS AND ANNEXES
80

CHAPTER CHAPTER TITLE
1
FORMS AND ANNEXES
ANNEX 1- LIST OF LAWS THAT SHAPED FISCAL DECENTRALIZATION
IN THE PHILIPPINES
Laws Provisions
19 June 1959 If the provincial board, municipal board or city council of the
city, or municipal council of the municipality or regularly
Republic Act No. 2264 organized municipal district shall fail to enact a budget before the
beginning of the ensuing fiscal year, the budget for the preceding
An Act Amending the Laws fiscal year shall be deemed re-enacted. (Section 1)
Governing Local
Governments by Increasing Copies of the provincial and city budgets shall be furnished the
their Autonomy and Secretary of Finance within ten days from their approval, who
Reorganizing Provincial shall have the power to review such budgets in order to see to it
Governments that the above provisions and conditions are complied with. If
within ninety days after submission to the Secretary of Finance,
the secretary takes no action, the said budget shall be deemed to
have complied with the above provisions. (Section 1)
All chartered cities, municipalities and municipal district shall

have authority to impose municipal license taxes or fees upon
persons engaged in any occupation or business, or exercising
privileges in chartered cities, municipalities or municipal districts
by requiring them to secure licenses at rates fixed by the council
of the LGU (Section 2)
All chartered cities, municipalities and municipal district shall

have authority to regulate and impose reasonable fees for
services rendered in connection with any business, profession or
occupation being conducted within the city, municipality or
municipal district and otherwise to levy for public purposes, just
and uniform taxes, licenses or fees (Section 2)
Provincial Boards of provinces shall have the authority to

appropriate money for purposes not specified by law, having in
view the general welfare of the province and the inhabitants and
to appropriate money for loans or aids to municipalities or
municipal districts of the province under such terms and
conditions as the provincial boards may fix. (Section 3)
Appointments by provincial governors, city mayors and

municipal mayors shall become effective upon the issuance of
such appointments and upon attestation by the provincial
treasurer of provinces, in case of appointments made by
81

LTOM, 2ND EDITION
Laws Provisions
provincial governors and municipal mayors, and by the city
treasurer, in case of appointments made by city mayors. All
appointments made by provincial governors, city mayors and
municipal mayors shall, after being attested to by the respective
provincial or city treasurers, be forwarded within ten days to the
commissioner of civil service for review pursuant to civil service
law and rules. (Section 8)
1 January 1960 The barrio council with the approval of a two-thirds vote of
the barrio assembly as provided in section four hereof, may raise,
Republic Act No. 2370 levy, collect and/or accept monies and other contributions from
the following sources (Section 14):
An Act Granting Autonomy
to Barrios of the • Voluntary contributions annually from each male or female
Philippines, otherwise resident twenty-one years of age or over;
known as “Barrio Charter • License on stores, signs, signboards, and billboards
Act” displayed or maintained in any place exposed to public view
except those displayed at the place or places where
profession or business advertised thereby is in whole or in
part conducted;
• A tax on gamecocks owned by residents of the barrio and on

the cockfights conducted therein: Provided, that nothing
herein shall authorize the barrio council to permit cockfights.
• Monies, materials and voluntary labor for specific public

works and cooperative enterprises of the barrio raised from
resident, landholders, producers and merchants of the barrio;
• Monies from grants-in-aid, subsidies, contributions and

revenues made available to barrios from municipal,
provincial or national funds;
• Monies from private agencies and individuals;
• An additional percentage, not exceeding one-fourth of one

percent of the assessed valuation of the property within the
barrio, collected by the municipal treasurer along with the
tax on real property levied for municipal purposes by the
municipality and deposited in the name of the barrio with the
municipal treasurer: Provided, that no tax or license fee
imposed by a barrio council shall exceed fifty per centum of
a similar tax or fee levied, assessed or imposed by the
municipal council.
82

FORMS AND ANNEXES
Laws Provisions
Ten per cent of all real estate taxes collected within the barrio
shall accrue to the barrio general fund, which sum shall be
deducted in equal amounts from the respective shares of the
province and municipality: Provided, That the municipal
treasurer may designate the barrio lieutenant and/ or the barrio
treasurer as his deputy to collect the said taxes. (Section 15)
All ordinances for raising barrio funds through taxes and

voluntary contributions may be initiated in the barrio council, and
submitted to the barrio assembly. Such ordinances may also
originate in the barrio assembly which may approve the same
finally without further action by the barrio council. (Section 16)
The barrio treasurer shall collect all taxes existing (except real
property), fees and contributions due the barrio treasury for
which he shall issue official receipts. The treasurer, who shall be
bonded in any amount to be fixed by the barrio council not
exceeding ten thousand pesos, shall be the custodian of the barrio
funds and property and shall deposit all collections with the
municipal treasurer within a period of one week after receipt of
such fees and contributions. (Section 16)
12 September 1967 The purpose of this Act to grant to local governments greater
freedom and ampler means to respond to the needs of their
An Act Granting Further people and promote their prosperity and happiness and to
Autonomous Powers to effect a more equitable and systematic distribution of
Local Governments, governmental powers and resources. (Section 2)
otherwise known as
“Decentralization Act of The allotment share of provinces and cities as provided for in the
1967” penultimate paragraph of Section eight, Commonwealth Act
Numbered Five hundred eighty-six, as amended by Republic Act
Numbered Seven hundred eighty-one, is hereby increased from
ten to thirteen per centum and the allotment share of
municipalities exclusive of cities as provided for in the same
Code is hereby increased from two to four per centum,
provisions of existing laws to the contrary notwithstanding.
(Section 13)
Within five days after the end of each month, the treasury field
cashiers to whom all collection agents shall remit all their
collections in each province shall retain from the internal revenue
collections accruing to the General Fund and remit to the
Provincial Treasurer an amount equivalent to one- twelfth of the
predetermined annual internal revenue regular allotment of the
province and municipalities under it, and to the city treasurer an
amount equivalent to one-twelfth of the pre-determined annual
internal revenue regular allotment of the city: Provided, That in
provinces where there are no treasury field cashiers, such
personnel shall be appointed. (Section 14)
83

LTOM, 2ND EDITION
Laws Provisions
26 August 1972 Regulations on building permit, inspection and other fees, and
for compliance with the same shall be covered by city and
Republic Act No. 6541 municipal ordinances: Provided, That Traditional indigenous
family dwellings under Section 1.01.04 (d) shall be exempt from
An Act to Ordain and Institute payment of building permit fees. (Section 1.02.04)
a National Building Code of
the Philippines, otherwise
known as “National
Building Code of the
Philippines”
1 July 1973 Section 2. Fundamental Principles
Section 4. Local Authority.
Section 5. Common Limitations on the Taxing Powers of
Presidential Decree No. Local Governments.
231 Section 7. Tax on Transfer of Real Property Ownership.
Section 8. Tax on Business of Printing and Publication
Section 9. Franchise Tax.
Enacting a Local Tax Code Section 10. Sand and Gravel Fee
for Provinces, Cities, Section 11. Taxes Transferred Section
Municipalities and Barrios, 12. Occupation Tax
otherwise known as “Local Section 13. Amusement Tax on Admission.
Tax Code” Section 14. Fees for Sealing and Licensing of Weights and
Measures.
Section 15. Tax on Peddlers.
Section 16. Rental Fee for Use of Municipal Waters, Rivers etc.
as Log Pond
Section 17. Specific Limitations on Power Section
18. Scope of Powers of Municipalities Section 19.
Tax on Business of Municipalities Section 20. Fees
and Charges of Municipalities
Section 21. Fishery Rentals or Fees of Municipalities
Section 22. Specific Limitations on Power of
Municipalities
Section 23. Scope of Power of Cities
Section 24. Additional Taxing Powers of Cities
Section 25. Specific Limitation on Power of Cities
Section 26. Scope of Power of Barrios
Section 27. License Taxes and Fees of Barrios
Section 28. Service Charges of Barrios Section
29. Contributions of Barrios
Section 30. Market Fees
Section 31. Slaughterhouse Fees3
Section 32. Public Utility Charges.
Section 33. Tuition Fees.
Section 34. Tolls for Roads, Bridges, Canals and Ferries.
Section 35. Charges for Holding Benefits
Section 36. Permit Fee
Section 37. Service Charge
84

FORMS AND ANNEXES
Laws Provisions
Section 53. Fixing of the Tax and Manner of Payment.
Section 54. Accrual of the Tax.
Section 55. Time for the Payment.
Section 58. Collection of Local Revenue by Treasurer.
Section 59. Examination of Books of Accounts
and Pertinent Records of Businessmen by Provincial
or City Treasurer.
Section 60. Application of Article.
Section 61. Local Government’s Lien.
20 May 1974 This Code shall govern the appraisal and assessment of real
property for purposes of taxation by provinces, cities and
Presidential Decree 464 municipalities, as well as the levy, collection and administration
of real property tax. (Section 1)
Enacting A Real Property Tax
Code, otherwise known as Chapter II of this Code provides the provisions on the appraisal
“Real Property Tax Code” and assessment of real property.
Section 4. Administration of the Real Property Tax.

Section 15. Preparation of Schedule of Values.
Section 17. Amendment of Schedules of Market Values.
Section 23. Certification of Revised Values to the Secretary
of Finance.
Chapter V of this Code provides the provisions on Special Levies

on Real Property.
Section 41. An additional one per cent tax on real property for
the Special Education Fund.
Section 42. Additional ad valorem tax on idle lands.
Section 47. Special levy by local governments.
Section 55. Special levy by the National Government.
Chapter VI of this Code provides the provisions on Collection of

Real Property Tax.
Section 57. Collection of tax to be the responsibility of

treasurers.
Section 58. Assessor to furnish treasurer with assessment roll.
Section 59. Notice of time for collection of tax.
Section 60. Payment of real property taxes in installments.
Chapter VIII of this Code provides the provisions on

Organizations, Functions and Supervisions.
Section 88. Provincial or city assessor, his assistant and deputies

and their appointments.
Section 91. Supervision over local assessment offices.
Section 96. Remission of tax by provincial or city board or
council.
85

LTOM, 2ND EDITION
Laws Provisions
3 June 1974 This Decree shall govern the conduct and management of the
financial affairs, transactions, and operations of provinces,
Presidential Decree No. cities, municipalities and barrios, and shall
477 provide the organization for local administration in the local
governments. (Section 1)
“Decree on Local Fiscal
Administration” Section 3. Supervisory authority of the Department of Finance.
Section 7. The Local Funds.
Section 12. Separation of Personal Money from Public Funds.
Chapter II of this Decree provides the provisions on Special
Accounts.
Section 15. Form and Content.
Section 24. The role of the treasurer in the budget process.
Section 29. Review of Provincial and City Budgets.
Section 30. Review of Municipal Budgets.
Chapter IV of this Decree provides the provisions on

Expenditures, Disbursements, Accounting and Accountability.
Section 41. Disbursement of Local Government Funds in

General.
Section 51. Certification, on and approval of, vouchers.
Section 52. Officials authorized to draw checks in
settlement of obligations.
Chapter V of this Decree provides the provisions on

Organization for Local Fiscal Administration
Section 60. Provincial or City Treasurers.

Section 61. Qualifications.
Section 63. Sub provincial treasurers.
Section 64. Assistant Provincial or City Treasurer.
Section 65. Qualifications and Functions.
Section 70. Municipal or Municipal District Treasurer.
Section 71. Qualifications.
Section 73. Treasury and auditorial visitations.
Section 74. Assistant Municipal or Municipal or Municipal
District Treasury.
Section 75. Qualifications and Functions.
Section 78. Appointment of treasury personnel in provinces,
cities, municipalities and municipal districts.
Section 79. Local treasury career service.
86

FORMS AND ANNEXES
Laws Provisions
2 August 1974 Every requisitions must be accompanied by a certificate, signed
by the local treasurer showing that an appropriation therefore
exists and that the estimated amount of such expenditure has been
Presidential Decree No. set aside for its liquidation. (Section 6)
526
When procurement is to be done at the local government level
and save in exempt cases, the local treasurer shall call bids for
Providing for an Improved open public competition. The call for bids shall show the
System of Acquisition, complete specifications and technical descriptions of the supplies
Utilization, Care, Custody desired and shall embody all terms and conditions of
and Disposal of Supplies in participations and award, terms of delivery and payment and of
the Local Governments, all other covenants affecting the transaction.
Amending for the Purpose
In all calls for bids, the right to waive any defect in the tender as
Section of RA No. 246,
well as the right to accept the bid most advantageous to the
otherwise known as
government shall be reserved. In no case, however, shall failure to
“The Local Autonomy
meet the specifications or technical requirements of the supplies
Act of 1959”, and Other
desired be waived. (Section 8)
Related Laws (Supply
Management) In cases of emergency where the need for the supplies is
exceptionally urgent or absolutely indispensable to prevent
immediate danger to, or loss of, life, local government units may
make emergency purchases or place repair orders without public
bidding regardless of amount. Delivery and utilization of
purchase and/or repair orders under this section shall be made
within fifteen (15) days after the placing of the same.
Immediately after the emergency purchase or repair order is
made, the chief of office or department making the emergency
purchase or repair order shall draw a regular requisition to cover
the same showing thereon (Section 14)
On or before the fifteenth day of April each year, the local

treasurer shall prepare, for the approval of the local chief
executive, an annual procurement program for the ensuing fiscal
year which shall contain and show an itemized list of the
estimated quantity of supplies needed for the entire ensuing
fiscal year, a complete description thereof as to kind,
quantity and quality, the estimated cost, and the balance on hand.
However, the total estimated cost of the approved annual
procurement program shall not exceed the total appropriations
authorized for the acquisition of supplies. (Section 19)
87

LTOM, 2ND EDITION
Laws Provisions
19 May 1975 Tax Declaration on Real Property. – Imprisonment for a period
of not less than two (2) nor more than four (4) years and
Presidential Decree No. perpetual disqualification from holding an elective or
705 appointive office, shall be imposed upon any public officer or
employee who shall issue a tax declaration on real property
Revising Presidential Decree without a certification from the Director of Forest Development
No. 389, otherwise known as and the Director of Lands or their duly designated
the Forestry Reform Code of representatives that the area declared for taxation is alienable
the Philippines and disposable lands, unless the property is titled or has been
occupied and possessed by members of the national cultural
minorities prior to July 4, 1955. (Section 84)
25 June 1975 This Decree shall be known as the decree on Credit Financing for
Local Governments, which shall govern the conduct and
Presidential Decree No. management of the credit transactions and borrowings of
752 provinces, cities, and municipalities. (Section 1)
‘Credit Financing for It shall be the basic policy that any local government may avail
Local Governments” of credit facilities and resort to borrowings only if the local funds
are not sufficient to finance the prosecution, completion,
expansion, operation, and maintenance of local infrastructures
and other socio-economic developmental projects. (Section 2)
Provincial, city and municipal governments may upon

recommendation of the Secretary of Finance contract loans,
credits, and other forms of indebtedness with the Philippine
National Bank, the Development Bank of the Philippines, the
Government Service Insurance System, and/or any other national
lending institution to finance the construction, installation,
improvement, expansion, operation, or maintenance of electric
light and power plants, public markets and slaughter-houses,
waterworks and irrigation systems, telephone and radio
communications systems, government housing projects, the
purchase of rural and urban estates and other capital investment
projects, subject to such terms and conditions as may be
prescribed by law and the provisions of the respective charters of
the aforesaid banks and lending institutions. [Section 4 (a)]
Provincial, city and municipal governments may likewise secure

from the Land Bank of the Philippines short, medium and long-
term loans and advances against security of real estate and/or
other acceptable assets for the establishment, development or
expansion of agricultural, industrial, home building or home
financing projects and other productive enterprises. [Section 4
(b)]
88

FORMS AND ANNEXES
Laws Provisions
The Secretary of Finance shall promulgate, from time to time,
such rules and regulations, as he may deem necessary for the
proper and effective implementation of this Decree. (Section 11)
19 December 1975 Declaration and listing in the assessment rolls. All timber
and forest lands owned by the Republic of the Philippines or any
Presidential Decree No. of its political subdivision, the beneficial use of which has been
853 granted to a taxable person, shall be declared for taxation
purposes and listed in the assessment rolls in the name of the
Providing for the concessionaire or licensee.
Classification and Valuation
of Timber and Forest Lands All timber and forest lands that are privately owned shall be
for Purposes of Real Property declared and listed in the name of the private owner. (Section 2)
Tax
Assessment Level. The assessment level for all timber and
forest lands shall be 40% of their market value as determined by
the Provincial/City Assessor in accordance with such methods,
procedures or regulations that the Secretary of Finance may
prescribe for the purpose. (Section 3)
Appraisal and Assessment of Timber and Forest Lands.

1. In cases where timber or forest land is located in one
municipality or in one city, it shall be the responsibility of the
Provincial/City Assessor, by himself or thru his Municipal
Deputy Assessor, to appraise and assess the same in accordance
with the methods, procedures, or regulations that the Secretary of
Finance may prescribe therefor.
2. In cases, however, where the timber and forest lands are

found in two or more municipalities, the Provincial Assessor
likewise shall appraise and assess the same and he shall issue
separate tax declarations covering the areas corresponding to
each municipality.
3. In cases where timber and forest lands cover two or more

provinces and/or cities, the Provincial/City Assessors concerned
shall jointly appraise and assess the property in accordance with
regulations to be issued by the Secretary of Finance. (Section 5)
Officer responsible for the collection of the real property

tax. The basic and additional real property tax on timber and
forest lands shall be collected by the Provincial/City Treasurers
where the timber and forest lands are located. (Section 7)
Tax Discount. If the basic real property tax and the additional
one (1%) per cent tax accruing to Special Educational Fund are
paid in full within the prescribed period of payment as provided
for under Section 60 of Presidential Decree No. 464, the taxpayer
shall be granted a discount as follows:
89

LTOM, 2ND EDITION
Laws Provisions
60% on the tax due and payable during the year
1975,
1976, and
1977. (Section 9)
Remedies and Sanctions. Collection of the real property tax

shall may be enforced through any or all of the remedies
provided under Presidential Decree No. 464, and the use or
nonuse of one remedy shall not be a bar against the institution of
the others. (Section 11)
There shall be created in every municipality where there are

timber and forest lands, regardless of class of such municipality,
the position of Municipal Deputy Assessor, whose appointment
shall be governed by Section 90 of Presidential Decree No. 464.
(Section 12)
12 April 1976 For purposes of effective fiscal management, Metropolitan
Manila is hereby divided into the four (4) Local Treasury and
Presidential Decree No. Assessment Districts. (Section 1)
921
Under the general direction of the Commissioner for Finance of
“Providing for the the Metropolitan Manila Commission, the City Treasurers and
Administration of Local the City Assessors of the treasury and assessment districts
Financial Services in created under Section one hereof shall, henceforth, exercise
Metropolitan Manila, general supervision over the local treasury and assessment
creating Local Treasury offices of the municipalities belonging to their respective
and Assessment Districts districts. Accordingly, said City Treasurers and City Assessors,
therein” in addition to the powers, duties, and functions exercised by them
under existing laws, decrees, and rules and regulations, shall also
discharge the duties and functions heretofore exercised and
performed under existing laws by the Provincial Treasurers and
Provincial Assessors of the provinces of Rizal and Bulacan
insofar as the aforesaid offices of the municipalities within the
Metropolitan Manila Area are concerned. (Section 2)
The power to appoint the Municipal Treasurers, Assistant

Municipal Treasurers and Municipal Deputy Assessors of the
municipalities within the Metropolitan Manila Area theretofore
exercised by the Provincial Treasurers and Provincial Assessors
of the provinces concerned shall be vested upon the
Commissioner for Finance of the Metropolitan Manila
Commission subject to the provisions of Sections 70 and 74 of
Presidential Decree No. 477 and Section 90 of Presidential
Decree No. 464, as the case may be, upon recommendation of
the City Treasurer or the City Assessor of the District concerned.
(Section 3)
90

FORMS AND ANNEXES
Laws Provisions
As provided for under existing laws, the City Treasurers and City
Assessors of cities integrated in the Metropolitan Manila Area
shall be appointed by the President of the Philippines upon
recommendation of the Secretary of Finance. Assistant City
Treasurers, Assistant City Assessors and other city treasury and
assessment personnel shall be appointed in accordance with the
provisions of existing laws. (Section 5)
The City and Municipal Treasurers of the cities and

municipalities in the Metropolitan Manila Area shall continue to
perform their duties and functions as such treasurers
conformably with existing laws, decrees, and rules and
regulations, and as herein provided for. (Section 6)
The City Assessors and Municipal Deputy Assessors in the

Metropolitan Manila Area shall continue to perform their duties
and functions as such assessors conformably with existing laws,
decrees, and rules and regulations. (Section 8)
16 May 1978 The Budget Commission shall be responsible for the review and
evaluation and for taking appropriate action on the annual
Presidential Decree No. principal and supplemental budgets and other financial
1375 statements covering all funds of local governments; and the
review and formulation of recommendations on resolutions of
“Transferring to the Budget local legislative bodies involving appropriation of local funds.
Commission the functions of (Section 1)
Local Government Budget
Administration” Revenue funds shall not be paid out of any local treasury except
in pursuance of specific statutory authority or of appropriations
duly approved pursuant to PD No. 477 and this Decree. (Section
5)
10 February 1983 Each local government unit shall have the power to create its
own sources of revenue and to levy taxes, subject to such
Batas Pambansa 337 limitations as may be provided by law. [Section 8(1)]
For purposes of taxation by local government units, the appraisal
“The Local Government and assessment of real property, as well as the levy, collection
Code” and administration of real property taxes, shall be governed by
the provisions of existing laws insofar as they are not inconsistent
with this Code. [Section 8(2)]
The barangay treasurer shall collect all taxes due or unpaid

including real property taxes, fees and other charges and
contributions accruing to the barangay treasury for which he shall
issue official receipts and shall deposit all collections with the
city or municipal treasury within a period of one week after
receipt thereof: Provided, That he collects the real property tax
due in his own barangay after being deputized by the treasurer
concerned for the purpose. [Section 107(1)]
91

LTOM, 2ND EDITION
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The financial records of the barangay shall be kept in the office
of the city or municipal treasurer in simplified manner as
prescribed by the Commission on Audit Representatives of the
Commission on Audit shall annually audit such accounts or as
often as may be necessary and make a report of the audit to the
sangguniang barangay and to the sangguniang bayan or
sangguniang panlungsod, as the case may be. [Section 107(2)]
The municipal treasurer shall be appointed by the Minister of

Finance upon recommendation of the municipal mayor, subject
to civil service law, rules and regulations. He shall take charge of
the municipal treasury office and acts as the chief financial
officer of the municipality. [Section 155(1)]
The provincial treasurer shall take charge of the provincial

treasury office and act as the chief financial officer of the
province. [Section 212(1)]
There shall be an assistant provincial treasurer who shall be

appointed by the Minister of Finance upon recommendation of
the provincial governor, subject to civil service laws, rules and
regulations. When the exigency of the service so requires,
additional positions for assistant provincial treasurers may be
created. [Section 213(1)]
16 July 1987 Incentives to Registered Enterprises. (Article 39)
Regional or area headquarters established in the Philippines by

multinational corporations and which headquarters do not earn
Executive Order No. 226 income from the Philippines and which act as supervisory,
communications and coordinating center for their affiliates,
subsidiaries, or branches in the Asia-Pacific Regional are
The Omnibus exempted from the payment from income tax. (Article 63)
Investments Code of
1987 Regional or area headquarters in the Philippines by multinational
corporations are exempt from contractor’s tax. (Article 64)
The regional or area headquarters of multinational companies shall

be exempt from all kinds of local licenses, fees, dues, impost or
any other local taxes or burdens.(Article 65)
Regional or area headquarters shall enjoy tax and duly free
importation of equipment and materials for training, conferences
which are needed for the functions of the regional or area
headquarters and which are not locally available subject prior
approval of the Board of Investments (BOI). (Article 66)
92

FORMS AND ANNEXES
Laws Provisions
9 January 1990 Until otherwise provided by the Congress, there is hereby
constituted the Metropolitan Manila Authority, hereinafter
Executive Order No. 392 referred to as the Authority, to be composed of the heads of the
four (4) cities and thirteen (13) municipalities comprising the
“Constituting the Metropolitan Manila area. (Section 1)
Metropolitan Manila
Authority” The Authority shall have jurisdiction over the delivery of basic
urban services requiring coordination in the Metropolitan Manila.
These basic urban services shall include among others: land use,
planning and zoning; traffic management; public safety; urban
development and renewal; management and control of operations
during calamities and emergencies affecting public welfare and
safety; and sanitation and waste management. Any change in the
classification of zoning shall however be subject to the approval
of the Housing and Land Use Regulatory Board (HLURB).
(Section 1)
• The Authority shall be governed by the Metropolitan Manila

Council, hereinafter referred to as the Council, composed of
the Mayors of the four (4) cities and thirteen
(13) municipalities of Metropolitan Manila. (Section 2)
• City and municipal treasurers of the local government units

comprising Metropolitan Manila shall continue to collect
all revenues and receipts accruing to the Metropolitan Manila
Commission and remit the same to the Authority; Provided,
that such income collections as well as the share of the
Authority from the regular sources of revenue in the General
Fund of the city or municipality as local counterpart for the
integrated basic services and developmental projects shall
treated as a trust fund in their books of account. (Section 7)
• All city and municipal treasurers, municipal assessors, and

their assistants as well as all other officials whose appointment
is currently vested upon the Metropolitan Manila Commission
shall be appointed by the President of the Philippines, upon
recommendation of the Council, subject to the Civil Service
law, rules and regulations. (Section 8)
• Other treasury and assessment personnel shall be appointed by

the local chief executive in the city or municipality in
accordance with existing laws. (Section 8)
93

LTOM, 2ND EDITION
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1 January 1992 Section 6. Authority to Create Local Government Units.
Section 7. Creation and Conversion.
Republic Act No. 7160 Section 8. Division and Merger.
An Act Providing for a Local Section 9. Abolition of Local Government Units.
Government Code of 1991, Section 10. Plebiscite Requirement.
otherwise known as "Local Section 11. Selection and Transfer of Local Government
Government Code of 1991 Site, Offices and Facilities.
LGC Book 1” Section 18. Power to Generate and Apply Resources
Section 115. Budget Information.
1 January 1992 Section 385. Manner of Creation of Barangays. Section
386. Requisites for Creation of Barangays. Section 387.
Chief Officials and Offices.
Section 393. Benefits of Barangay Officials.
Republic Act No. 7160 Section 395. Barangay Treasurer: Appointment,
Qualification, Powers and Duties.
Section 441. Manner of Creation of Municipalities.
Section 442. Requisites for Creation of Municipalities.
An Act Providing for a Local Section 443. Officials of the Municipal Government.
Government Code of 1991, Section 449. Manner of Creation of Cities.
otherwise known as "Local Section 450. Requisites for Creation of Cities. Section
Government Code of 1991 454. Officials of the City Government. Section 460.
LGC Book 3" (Local Manner of Creation of Provinces. Section 461.
Government Units) Requisites for Creation of Provinces.
Section 470. Appointment, Qualifications, Powers, and
Duties of Treasurer.
Section 471. Assistant Treasurer.
Section 472. Qualifications, Powers and Duties of
Assessor.
Section 473. Assistant Assessor.
1 January 1992 Section 513. Failure to Post and Publish the Itemized Monthly
Collections and Disbursements.
Republic Act No. 7160 Section 516. Penalties for Violation of Tax Ordinances.
Section 517. Omission of Property from Assessment or
Tax Rolls by Officers and Other Acts.
An Act Providing for a Local
Government Code of 1991, Section 522. Insurance Coverage.
otherwise known as "Local Section 523. Personnel Retirement and/or Benefits.
Government Code of 1991 Section 526. Application of this Code to Local Government
LGC Book 4" Units in the Autonomous Regions.
(Miscellaneous and Final Section 529. Tax Ordinances or Revenue Measures.
Provisions)
94

FORMS AND ANNEXES
Laws Provisions
13 March 1992 The provisions of existing laws, rules and regulations to the
contrary notwithstanding, no taxes, local and national, shall be
Republic Act No. 7227 imposed within the Subic Special Economic Zone. In lieu of
paying taxes, three percent (3%) of the gross income earned by
An Act Accelerating the all businesses and enterprises within the Subic Special Economic
Conversion of Military Zone shall be remitted to the National Government, one percent
Reservations into other (1%) each to the local government units affected by the
Productive Uses, Creating declaration of the zone in proportion to their population area, and
the Bases Conversion and other factors. In addition, there is hereby established a
Development Authority for development fund of one percent (1%) of the gross income
the Purpose, Providing earned by all businesses and enterprises within the Subic Special
Funds Therefor and for Economic Zone to be utilized for the development of
other purposes, otherwise municipalities outside the City of Olongapo and the Municipality
known as "Bases of Subic, and other municipalities contiguous to be base areas.
Conversion and [Section 12(c)].
Development Act of
1992". Except as herein provided, the local government units comprising
the Subic Special Economic Zone shall retain their basic
autonomy and identity. The cities shall be governed by their
respective charters and the municipalities shall operate and
function in accordance with Republic Act No. 7160, otherwise
known as the Local Government Code of 1991. [Section 12(i)].
28 April 1992 Investors, as certified by the Filipino Investors Society and duly
confirmed by the Screening Committee, shall be exempt from
Republic Act No. 7459 payment of license fees, permit feed and other business taxes in
the development of their particular inventions. This is an
An Act Providing Incentives exception to the taxing power of the local government units. The
to Filipino Investors and certification shall state that the manufacture of the invention is
Expanding the Functions of made on a commercial scale.
the Technology Application
and Promotion Institute, Investors shall be exempt from paying any fees involved in their
Appropriating Funds application for registration of their inventions. (Section 5)
Therefor, and for other To promote, encourage, develop and accelerate
Purposes, otherwise known as commercialization of technologies developed by local researchers
“Philippine Investors and or adapted locally from foreign sources including inventions, any
Invention Incentives Act” income derived from these technologies shall be exempted from
all kinds of taxes during the first ten
(10) years from the date of the first sale, subject to the rules and
regulations of the Department of Finance; Provided, that this tax
exemption privilege pertaining to invention shall be extended to
the legal heir or assignee upon the death of the inventor.
The technologies, their manufacture or sale, shall also be

exempt from payment of license, permit fees, customs duties and
charges on imports. (Section 6)
95

LTOM, 2ND EDITION
Laws Provisions
24 February 1995 Business establishments operating within the Zone shall be
entitled to the existing fiscal incentives as provided for under
Republic Act No. 7922 Presidential Decree No. 66, the law creating the Export
Processing Zone Authority (EPZA), or those provided under
An Act Establishing a Book VI of Executive Order No. 226, otherwise known as the
Special Economic Zone Omnibus Investments Code of 1987 [Section 4(b)].
and Free Port in the
Any provision of existing law, rules or regulations to the contrary
Municipality of Santa Ana
notwithstanding, no taxes, local and national, shall be imposed on
and the Neighboring
business establishments operating within the Zone. In lieu of
Islands in the Municipality of
paying taxes, said business establishments shall pay and remit to
Aparri, Province of Cagayan,
the national government five per centum (5%) of their gross
Providing Funds Therefor,
income, to be divided as follows:
and For Other Purposes,
otherwise known as 1. Two per centum (2%) shall accrue to the general fund
"Cagayan Special of the national government;
Economic Zone Act of
2. One per centum (1%) to the Province of Cagayan;
1995"
3. One-half per centum (1/2%) to be shared by the
municipalities affected by the declaration of the Zone in
proportion to their income from business activities within the
Zone; and
4. One and one-half per centum (1 1/2%) to the Cagayan
Economic Zone Authority which shall be created under this
Act [Section 4(c)].
24 February 1995 • Business establishments operating within the ECOZONES
shall be entitled to the fiscal incentives as provided for under
Republic Act No. 7916 Presidential Decree No. 66, the law creating the Export
Processing Zone Authority, or those provided under Book VI
of Executive Order No. 226, otherwise known as the
(as amended by RA 8748) Omnibus Investment Code of 1987. (Section 23)
• Tax credits for exporters using local materials as Inputs shall
enjoy the same benefits provided for in the Export
An Act Providing for the Development Act of 1994. (Section 23)
Legal Framework and • Except for real property taxes on land owned by
Mechanisms For the developers, no taxes, local and national, shall be
Creation, Operations, imposed on business establishments operating within
Administration, and the ECOZONE. (Section 24)
Coordination of Special
Economic Zones in the • All persons and services establishments in the ECOZONE
Philippines, Creating For shall be subject to national and local taxes under the National
This Purpose, The Internal Revenue Code and the Local Government Code.
Philippine Economic Zone (Section 25)
Authority (PEZA), And For • Goods manufactured by an ECOZONE enterprise shall be
Other Purposes, otherwise made available for immediate retail sales in the domestic
known as “The Special market, subject to payment of corresponding taxes on the
Economic Zone Act of raw materials and other regulations that may be adopted by
1995” the Board of the PEZA. (Section 26)
96

FORMS AND ANNEXES
Laws Provisions
• Without prior Bangko Sentral approval, after tax profits
and other earnings of foreign investments in enterprises in
the ECOZONE may be remitted outward in the equivalent
foreign exchange through any of the banks licensed by the
Bangko Sentral ng Pilipinas in the ECOZONE: Provided,
however, That such foreign investments in said enterprises
have been previously registered with the Bangko Sentral.
(Section 28)
• An additional deduction equivalent to one- half (1/2) of the

value of training expenses incurred In developing skilled or
unskilled labor or for managerial or other management
development programs incurred by enterprises In the
ECOZONE can be deducted from the national government's
share of three percent (3%) as provided In Section 24.
(Section 42)
• An additional deduction equivalent to one- half (1/2) of the

value of training expenses incurred In developing skilled or
unskilled labor or for managerial or other management
development programs incurred by enterprises In the
ECOZONE can be deducted from the national government’s
share of three percent (3%) as provided In Section 24.
(Section 42)
• The PEZA, the Department of Labor and Employment, and

the Department of Finance shall jointly make a review of the
incentive scheme provided In this section every two (2) years
or when circumstances so warrant. (Section 42)
1 March 1995 The affairs of Metropolitan Manila shall be administered by the

Metropolitan Manila Authority, hereinafter referred to as the
Republic Act No. 7924 MMDA, to replace the Metro Manila Authority (MMA)
“Creating the Metropolitan organized under Executive Order No. 392, series of 1990.
Manila Development (Section 2)
Authority or MMDA”
Sources of Funds and the Operating Budget of MMDA
(Section 10):
a. To carry out the purposes of this Act , the amount of One

billion pesos (P1,000,000,000) is hereby authorized to be
appropriated for the initial operation of the MMDA.
Thereafter, the annual expenditures including capital outlays
of the MMDA shall be provided in the General
Appropriations Act.
b. The MMDA shall continue to receive the Internal Revenue

Allotment (IRA) currently allocated to the present MMA.
97

LTOM, 2ND EDITION
Laws Provisions
c. The MMDA is likewise empowered by levy fines, and
impose fees and charges for various services rendered.
d. Five percent (5%) of the total annual gross revenue of the

preceding year, net of the internal revenue allotment, of each
local government unit mentioned in Section 2 hereof, shall
accrue and become payable monthly to the MMDA by each
city or municipality. In case of failure to remit the said fixed
contribution, the DBM shall cause the disbursement of the
same to MMDA chargeable against the IRA allotment of the
city or municipality concerned, the provisions of Section 286
of RA 7160 to the contrary notwithstanding (Section 10) of
the barangay from the real property and other local taxes.
(Section 27)
For purposes of DBM computation of agency income, the LGUs

shall submit on February 28 of each year a statement of the
certified LGU Gross Revenue of the immediately preceding year
as well as a statement of Certified LGU Gross Revenue estimate
of the current year.
In case of failure to remit said fixed contributions, the DBM,

upon request of the Chairman, shall cause its disbursement to the
Authority, chargeable against the IRA share of the City or
Municipality concerned, the provisions of Section 286 of RA
7160 to the contrary notwithstanding. (Section 28)
1 June 1999 Business establishments operating within the ECOZONE shall be
exempt from national and local taxes, with exemption from real
Republic Act No. 8748 property taxes. In lieu thereof, fiver percent (5%) of the gross
income earned by business enterprises within the ECOZONE
shall be paid and remitted as follows:
1. Three percent (3%) to the National Government; and
2. Two percent (2%) which shall be directly remitted to the of

An Act Amending RA No. the municipality or city where the business enterprise is
7916, Otherwise Known as located. (Section 4)
the “Special Economic All persons and service establishments in the ECOZONE shall be
Zone Act of 1995” subject to national and local taxes under the NIRC and the LGC.
(Section 5)
Except for real property taxes on land owned by developers, no

taxes, local and national, shall be imposed on business
establishments operating within the ECOZONE. (Section 24)
All persons and service establishments in the ECOZONE shall be
subject to national and local taxes under the National Internal
Revenue Code and the Local Government Code.” (Section 25)
98

FORMS AND ANNEXES
Laws Provisions
23 June 1999 The Department shall within six (6) months after the effectivity
of this Act, establish, with the participation of LGUs, NGOs,
POs, the academe and other concerned entities from the private
Republic Act No. 8749 sector, formulate and implement the Integrated Air Quality
Improvement Framework for a comprehensive air pollution
management and control program. The framework shall, among
others, prescribe the emission reduction goals using permissible
An Act Providing for a standards, control strategies and control measures to undertaken
Comprehensive Air within a specified time period, including cost-effective use of
Pollution Control Policy and economic incentives, management strategies, collective actions,
for Other Purposes. and environmental education and information.
The Integrated Air Quality Improvement Framework shall be

adopted as the official blueprint with which all government
agencies must comply with to attain and maintain ambient air
quality standards. (Section 7)
In coordination with other appropriate government agencies, the

LGUs shall prepare and implement a program and other measures
including relocation, whenever necessary, to protect the health
and welfare of residents in the area.
For those designated as nonattainment areas, the Department,

after consultation with local government authorities,
nongovernment organizations (NGOs), people’s organizations
(POs) and concerned sectors may revise the designation of
such areas and expand its coverage to cover larger areas
depending on the condition of the areas. (Section 10)
Simultaneous with the issuance of the guideline values and

standards, the Department, through the research and
development program contained in this Act and upon
consultation with appropriate advisory committees, government
agencies and LGUs, shall issue, and from time to time, revise
information on air pollution control techniques. (Section 11)
Consistent with the provisions of this Act, the Department shall

have the authority to issue permits as it may determine necessary
for the prevention and abatement of air pollution.
Said permits shall cover emission limitations for the regulated air
pollutants to help attain and maintain the ambient air quality
standards. These permits shall serve as management tools for the
LGUs in the development of their action plan. (Section 16)
99

LTOM, 2ND EDITION
Laws Provisions
The Department, in collaboration with the DOTC, DTI and
LGUs, shall develop an action plan for the control and
management of air pollution from motor vehicles consistent with
the Integrated Air Quality Framework. The DOTC shall enforce
compliance with the emission standards for motor vehicles set by
the Department. The DOTC may deputize other law enforcement
agencies and LGUs for this purpose. [Section 22 (b)]
Local Government Units (LGUs) shall share the responsibility in

the management and maintenance of air quality within their
territorial jurisdiction. Consistent with Sections 7, 8 and 9 of this
Act, LGUs shall implement air quality standards set by the
Board in areas within their jurisdiction; Provided, however,
That in case where the board has not been duly constituted and
has not promulgated its standards, the standards set forth in this
Act shall apply.
The Department shall provide the LGUs with technical

assistance, trainings and a continuing capability-building
program to prepare them to undertake full administration of
the air quality management and regulation within their territorial
jurisdiction. (Section 36)
23 November 1999 The regional or area headquarters and regional operating

headquarters of multinational companies shall be exempt from all
Republic Act No. 8756 kinds of local taxes, fees, or charges imposed by a local
government unit except real property tax on land improvements
An Act Providing for the and equipment. (Article 66 Section 6)
Terms, Conditions and
Licensing Requirements of
Regional or Area
Headquarters, Regional
Operating Headquarters, and
Regional Warehouses
of Multinational Companies,
Amending for the Purpose
Certain Provisions of
Executive Order No. 226,
Otherwise Known as the
Omnibus Investments
Code of 1987. This law is
otherwise known as
“Regional Headquarters
Law”.
100

FORMS AND ANNEXES
Laws Provisions
June 14, 2000 Notwithstanding any law to the contrary, within two (2) years
from the date of the effectivity of this Act, all departments,
Republic Act No. 8792 bureaus, offices and agencies of the government, as well as all
government-owned and -controlled corporations, that pursuant to
An Act Providing for the law require or accept the filling of documents, require that
Recognition and Use of documents be created, or retained and/ or submitted, issue
Electronic Commercial and permits, licenses or certificates of registration or approval, or
Non-Commercial provide for the method and manner of payment or settlement of
Transactions and fees and other obligations to the government, shall –
Documents, Penalties for
Unlawful Use Thereof, and 1. accept the creation, filing or retention of such documents in
for other purposes, the form of electronic data messages or electronic
otherwise known as documents;
"Electronic Commerce 2. issue permits, licenses, or approval in the form of electronic
Act of 2000." data messages or electronic documents;
3. require and/or accept payments, and issue receipts
acknowledging such payments, through systems using
electronic data messages or electronic documents; or
4. transact the government business and/or perform
governmental functions using electronic data messages or
electronic documents, and for the purpose, are authorized to
adopt and promulgate, after appropriate public hearing and
with due publication in newspapers of general circulation,
the appropriate rules, regulations, or guidelines, to, among
others, xxx (Section 27)
24 February 2001 A municipality or a cluster of barangays may be converted into a

component city if it has a locally generated average annual
income, as certified by the Department of Finance, of at least
Republic Act No. 9009 One hundred million pesos (P100,000,000.00) for the last two (2)
consecutive years based on 2000 constant prices, and if it has
“An Act Amending Section either of the following requisites:
450 of RA No. 7160,
Otherwise Known as The • a contiguous territory of at least one hundred (100) square
Local Government Code of kilometers, as certified by the Land Management Bureau; or
1991, By Increasing The • a population of not less than one hundred fifty thousand
Average Annual Income (150,000) inhabitants, as certified by the National Statistics
Requirement for a Office.
Municipality or Cluster of
Barangays to be Converted The territorial jurisdiction of a newly created city shall be
into a Component City” properly identified by metes and bounds. The requirement on
land area shall not apply where the city proposed to be
created is composed of one (1) or more islands. The territory
need not be contiguous if it comprises two (2) or more islands.
101

LTOM, 2ND EDITION
Laws Provisions
The average annual income shall include the income accruing to
the general fund, exclusive of special funds, transfers, and non-
recurring income.
8 June 2001 The obligations of generating companies and energy resource

developers to communities hosting energy generating facilities
and/or energy resource developers as defined under Chapter II,
Sections 289 to 294 of the Local Government Code and Section
Republic Act No. 9136 5(i) of Republic Act No. 7638 and their implementing rules and
regulations and applicable orders and circulars consistent with
this Act shall continue: Provided, further, That the obligations
mandated under Chapter II, Section 291 of Republic Act No.
7160, shall apply to privately-owned corporations or entities
An Act Ordaining Reforms in utilizing the national wealth of the locality.
the Electric Power Industry,
Amending for the Purpose To ensure the effective implementation of the reduction in cost of
Certain Laws and For Other electricity in the communities where the source of energy is
Purposes, otherwise known as located, the mechanics and procedures prescribed in the
“Electric Power Industry Department of the Interior and Local Government (DILG)- DOE
Reform Act of 2001” or Circulars No. 95-01 and 98-01 dated 31 October 1995 and 30
“EPIRA Law” September 1998, respectively and other issuances related thereto
shall be pursued.
Towards this end, the fund generated from the eighty percent
(80%) of the national wealth tax shall, in no case, be used by any
local government unit for any purpose other than those for which
it was intended. (Section 66.)
13 November 2002 The Office of the Treasurer of each city or municipality shall
register the BMBE’s and issue a Certificate of Authority to
Republic Act No. 9178 enable the BMBE to avail of the benefits under this Act. Any
such applications shall be processed within fifteen (15) working
An Act to Promote the days upon submission of complete documents. Otherwise, the
Establishment of Barangay BMBEs shall be deemed registered. The Municipal or City
Micro Business Enterprises Mayor may appoint a BMBE Registration Officer who shall be
(BMBEs), Providing under the Office of the Treasurer. Local government units
Incentives and Benefits (LGU’s) are encouraged to establish a One-Stop-business
Therefor, and for other Registration Center to handle the efficient registration and
Purposes. processing of permits/licenses of BMBEs. Likewise, LGUs shall
make a periodic evaluation of the BMBE’s financial status for
monitoring and reporting purposes.
The LGUs shall issue the Certificate of Authority promptly and

free of charge. However, to defray the administrative costs of
registering and monitoring the BMBEs, the LGUs may charge a
fee renewal.
102

FORMS AND ANNEXES
Laws Provisions
The Certificate of Authority shall be effective for a period of two
(2) years, renewable for a period of two (2) years for every
renewal.
As much as possible, BMBEs shall be subject to minimal
bureaucratic requirements and reasonable fees and charges.
(Section 4)
The BMBE shall report to the city or municipality of any changer

in the status of its ownership structure, and shall surrender the
original copy of the BMBE Certificate of Authority for notation
of the transfer. (Section 6)
All BMBEs shall be exempt from tax for income arising from the
operations of the enterprise.
The LGUs are encouraged either to reduce the amount of local
taxes, fees and charges imposed or to exempt BMBEs from local
taxes, fees and charges. (Section 7)
10 January 2003 All procurement of the national government, its departments,
bureaus, offices and agencies, including state universities and
Republic Act No. 9184 colleges, government-owned and/or -controlled corporations,
government financial institutions and local government units,
“An Act Providing for shall, in all cases, be governed by these principles (Section 3):
the Modernization,
Standardization and • Transparency in the procurement process and in the
Regulation of the implementation of procurement contracts.
Procurement Activities of the • Competitiveness by extending equal opportunity to enable
Government and for Other private contracting parties who are eligible and qualified to
Purposes”, otherwise known participate in public bidding
as “Procurement Law”
• Streamlined procurement process that will uniformly apply
to all government procurement. The procurement process
shall be simple and made adaptable to advances in modern
technology in order to ensure an effective and efficient
method.
• System of accountability where both the public officials

directly or indirectly involved in the procurement process as
well as in the implementation of procurement contracts and the
private parties that deal with government are, when
warranted by circumstances, investigated and held liable for
their actions relative thereto.
• Public monitoring of the procurement process and the

implementation of awarded contracts with the end in view of
guaranteeing that these contracts are awarded pursuant to the
provisions of this Act and its implementing rules and
regulations, and that all these contracts are performed strictly
according to specifications.
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This Act shall apply to the Procurement of Infrastructure
Projects, Goods, and Consulting Services, regardless of source of
funds, whether local or foreign, by all branches and
instrumentalities of government, its departments, offices and
agencies, including government-owned and/or
-controlled corporations and local government units, subject to
the provisions of Commonwealth Act No. 138. Any treaty or
international or executive agreement affecting the subject matter
of this Act to which the Philippine government is a signatory
shall be observed. (Section 4)
The GPPB shall be composed of the Secretary of the Department

of Budget and Management, as Chairman, the Director-
General of the National Economic and Development Authority,
as Alternate Chairman, with the following as Members; the
Secretaries of the Departments of Public Works and Highways,
Finance, Trade and Industry, Health, National Defense,
Education, Interior and Local Government, Science and
Technology, Transportation and Communications, and Energy, or
their duly authorized representatives and a representative from
the private sector to be appointed by the President upon the
recommendation of the GPPB. The GPPB may invite a
representative from the Commission on Audit to serve as a
resource person. (Section 64)
22 March 2004 Each LGU may raise funds to subsidize the necessary expenses
for the operation and maintenance of sewerage treatment or
Republic Act No. 9275 septage facility servicing their area of jurisdiction through local
real property taxes and enforcement of a service fee system.
An Act Providing for a
Comprehensive Water The DENR shall implement a wastewater charge system in all
Quality Management and management areas through the collection of wastewater
for Other Purposes charges/fees. (Section 7)
A water quality management fund, to be administered by the
Department, in coordination with other concerned agencies, as a
special account in the National Treasury is hereby established.
The fines imposed and damages awarded to the government by the

Pollution Adjudication Board (PAB), proceeds of permits issued
by the Department under this Act, donations, endowments and
grants in the form of contributions to the national government
under this Act shall form part of the fund. Such donations,
endowments and grants shall be exempt from donor’s taxes and
all other taxes, charges or fees imposed by the government and
shall be deductible from the gross income of the donor for
income tax purposes. (Section 9)
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FORMS AND ANNEXES
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Rewards, monetary or otherwise, shall be provided to individuals,
private organization and entities, including civil society, that have
undertaken outstanding and innovative projects, technologies,
processes and techniques or activities in water quality
management. Said rewards shall be sourced from the Water
Quality Management Fund herein created. (Section 25)
An incentive scheme is hereby provided for the purpose of

encouraging LGUs, water districts (WDs), enterprises, or private
entities, and individuals, to develop or undertake an effective
water quality management, or actively participate in any program
geared towards the promotion thereof as provided in this Act.
(Section 26)
20 March 2007 Business enterprises presently registered and granted with tax
and duty incentives by the Clark Development Corporation
(CDC), Poro Point Management Corporation (PPMC), JHMC,
Republic Act No. 9400 and Bataan Technological Park Incorporated (BTPI), including
such governing bodies, shall be entitled to the same incentives
until the expiration of their contracts entered into prior to the
effectivity of this Act. (Section 7)
An Act Amending Republic
Act No. 7227, as amended, These provisions express that the following Special Economic
otherwise known as the Zones will be exempted in paying all national and local taxes. In
‘Bases Conversion lieu of said taxes, a five percent (5%) tax on gross income earned
and Development Act shall be paid by all registered business enterprises within the EZs
of 1992”, and For Other and shall be directly remitted as follows: three percent (3%) to
Purposes the National Government, and two percent (2%) to the treasurer’s
office of the municipality or city where they are located.
Section 12. Subic Special Economic Zone

Section 15. Clark Special Economic Zone (CSEZ)
and Clark Freeport Zone (CFZ).
Section 15-A. Poro Point Freeport Zone (PPFZ)
Section 15-B. Morong Special Economic Zone (MSEZ)
Section 15-C. John Hay Special Economic Zone (JHSEZ)
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29 June 2007 The Aurora Special Economic Zone Authority (ASEZA) may
administer the following incentives to the registered enterprises
located therein to the extent of the activity/ project:
Republic Act No. 9490 A. Income Tax Holiday (ITH) (Section 5)
Imposition of a tax rate of five percent (5%) on Gross Income

An Act Establishing the Earned (GIE) - Except for real property tax on land, no local and
Aurora Special Economic national taxes as prescribed under Republic Act No. 8424, also
Zone in the Province known as - The National Internal Revenue Code of 1997, as
of Aurora, Creating for Amended - such as income tax, excise tax and franchise taxes,
the Purpose the Aurora shall be imposed on registered enterprises operating within the
Special Economic Zone Aurora Ecozone. In lieu thereof, five percent (5%) of the gross
Authority, Appropriating income earned shall be paid as follows:
Funds Therefor and for 1. Three percent (3%) to the national government; and
Other Purposes, otherwise
known as “Aurora Special 2. Two percent (2%) shall be remitted by the business
Economic Zone Act of establishments to the treasurer’s office of the municipality or
2007” city where the enterprise is located.
All persons and service establishments in the Aurora Ecozone

shall be subject to national and local taxes under the National
Internal Revenue Code of 1997, as amended, and the Local
Government Code. [Section 5(c)].
3 August 2007 In order to ascertain, assess, and collect the correct amount of
local taxes, fees or charges, the BIR records pertaining to any
person, partnership, corporation or association subject to local
Executive Order No. 646 taxes, fees, and charges shall be made available to the local
treasurer, his deputy or duly authorized representative. (Section
1)
Accessibility of Information For the purpose of ascertaining the correctness of any return, or
on Taxpayers between the in making a return when none has been made, or in determining
Bureau of Internal Revenue the liability of any person for any internal revenue tax, or in
and the Local Government collecting any such liability, or in evaluating tax compliance, the
Units for Tax Collection LGUs, upon proper request of the Commissioner of Internal
Revenue or his duly authorized representative, shall provide the
BIR with any information such as, but not limited to, costs and
volume of production, receipts or sales, and gross incomes of
taxpayers. (Section 2)
The LGUs’ access to records of, or information provided for by,

BIR and vice versa shall be utilized for the aforementioned
purposes only, and shall not be used for any other purpose, or
disclosed to unauthorized persons. (Section 3)
106

FORMS AND ANNEXES
Laws Provisions
The Department of Finance shall prepare and issue the necessary

guidelines for the effective implementation of this Executive
Order, with due regard to the security of taxpayers’ information.
(Section 4)
16 December 2008 RE developers of renewable energy facilities, including hybrid
systems, in proportion to and to the extent of the RE component,
Republic Act No. 9513 for both power and non-power applications,
as duly certified by the DOE, in consultation with the BOI,
Renewable Energy Act of shall be entitled to the following incentives:
2008 - An Act Promoting
the Development, Utilization xxx
and Commercialization c. Special Realty Tax Rates on Equipment and Machinery.
of Renewable Energy - Any law to the contrary notwithstanding, realty and other
Resources and for Other taxes on civil works, equipment, machinery, and other
Purposes to be known as improvements of a Registered RE Developer actually and
"Renewable Energy Act exclusively used for RE facilities shall not exceed one and a
of 2008". half percent (1.5%) of their original cost less accumulated
normal depreciation or net book value: Provided, That in
case of an integrated resource development and generation
facility as provided under Republic Act No. 9136, the real
property tax shall only be imposed on the power plant.
(Section 15)
19 December 2008 Appropriation and Sources of Income. xxx
b. To partially provide for the funding of the fire service the

following taxes and fees which shall accrue to the General
Republic Act No. 9514 Fund of the National Government, are hereby imposed:
1. Fees to be charged for the issuance of certificates,

An Act Establishing A permits and licenses as provided for in Section 7 (a)
Comprehensive Fire Code hereof;
of the Philippines, 2. One-tenth of one per centum (0.1%) of the verified
Repealing Presidential estimated value of buildings or structures to be erected,
Decree No. 1185 and For from the owner thereof, but not to exceed fifty thousand
Other Purposes otherwise (P50,000.00) pesos, one half to be paid prior to the
known as the “Revised Fire issuance of the building permit, and the balance, after
Code of the Philippines of final inspection and prior to the issuance of the use and
2008”. occupancy permit;
3. One-hundredth of one per centum (0.10%) of the

assessed value of buildings or structures annually
payable upon payment of the real estate tax, except on
structures used as single family dwellings;
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4. Two per centum (2%) of all premiums, excluding re-
insurance premiums for the sale of fire, earthquake and
explosion hazard insurance collected by companies,
persons or agents licensed to sell such insurances in the
Philippines;
5. Two per centum (2%) of gross sales of companies,

persons or agents selling fire fighting equipment,
appliances or devices, including hazard detection and
warning systems; and
6. Two per centum (2%) of the service fees received from

fire, earthquake, and explosion hazard reinsurance
surveys and post loss service of insurance adjustment
companies doing business in the Philippines directly
through agents. (Section 12)
The collection and assessment of taxes, fees and fines as

prescribed in the Local Government Code, except those contained
in this Code, shall be the function of the concerned local
government units. [(Section 13(b)]
17 February 2009 Chapter V of this Act provides the provisions on Responsibilities,
Rights and Privileges of Cooperatives such as:
Tax Treatment of Cooperative - Duly registered cooperatives
under this Code which do not transact any business with non-
Republic Act No. 9520 members or the general public shall not be subject to any taxes
and fees imposed under the internal revenue laws and other tax
laws. Cooperatives not falling under this article shall be
governed by the succeeding section. (Article 60)
An Act Amending the
Cooperative Code of the Tax and Other Exemptions - Cooperatives transacting business
Philippines to be known as with both members and non-members shall not be subjected to
the “The Philippine tax on their transactions with members. In relation to this, the
Cooperative Code of transactions of members with the cooperative shall not be subject
2008”. to any taxes and fees, including not limited to final taxes on
members’ deposits and documentary tax. Notwithstanding the
provisions of any law or regulation to the contrary, such
cooperatives dealing with nonmembers shall enjoy the following
tax exemptions:
“(1) Cooperatives with accumulated reserves and undivided net

savings of not more than Ten million pesos (P10,000,000.00)
shall be exempt from all national, city, provincial, municipal or
barangay taxes of whatever name and nature. Such
cooperatives shall be exempt from customs duties, advance
sales or compensating taxes on their importation of machineries,
equipment and spare parts used by them and which are not
available locally a certified by the Department of Trade and
Industry
108

FORMS AND ANNEXES
Laws Provisions
(DTI). All tax free importations shall not be sold nor the
beneficial ownership thereof be transferred to any person until
after five (5) years, otherwise, the cooperative and the
transferee or assignee shall be solidarily liable to pay twice
the amount of the imposed tax and / or duties.
"(2) Cooperatives with accumulated reserves and divided net

savings of more than Ten million pesos (P10,000,000.00) shall fee
the following taxes at the full rate:
“(a) Income Tax
“(b) Value-Added Tax
“(c) All other taxes unless otherwise provided herein; and
“(d) Donations to charitable, research and educational institutions

and reinvestment to socioeconomic projects within the area of
operation of the cooperative
“(3) All cooperatives, regardless of the amount of accumulated

reserves and undivided net savings shall be exempt from payment
of local taxes and taxes on transactions with banks and insurance
companies: Provided, That all sales or services rendered for non-
members shall be subject to the applicable percentage taxes sales
made by producers, marketing or service cooperatives: Provided
further, That nothing in this article shall preclude the
examination of the books of accounts or other accounting
records of the cooperative by duly authorized internal revenue
officers for internal revenue tax purposes only, after previous
authorization by the Authority. (Article 61)
21 May 2009 Section 140 of Republic Act No. 7160, otherwise known as “The
Local Government Code of 1991”, is hereby amended to read as
Republic Act No. 9640 follows:
An Act Amending Section • SEC. 140. Amusement Tax. - (a) The province may levy an
140 (A) of RA No. 7160, amusement tax to be collected from the proprietors, lessees,
Otherwise Known as “The or operators of theaters, cinemas, concert halls, circuses,
Local Government Code of boxing stadia, and other places of amusement at a rate of not
1991”, otherwise known as more than ten percent (10%) of the gross receipts from the
“Amusement Tax” admissions fees.
• In the case of theaters or cinemas, the tax shall first be

deducted and withheld by their proprietors, lessees, or
operators and paid to the provincial treasurer before the
gross receipts are divided between said proprietors, lessees,
or operators and the distributors of the cinematographic
films.
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• The holding of operas, concerts, dramas, recitals, paintings,
and art exhibitions, flower shows, musical programs, literary
and oratorical presentations, except pop, rock, or similar
concerts shall be exempt from the payment of the tax herein
imposed.
• The sangguniang panlalawigan may prescribe the time,

manner, terms and conditions for the payment of tax. In case
of fraud or failure to pay the tax, the sangguniang
panlalawigan may impose such surcharges, interest and
penalties, as it may deem appropriate.
• The proceeds from the amusement tax shall be shared

equally by the province and the municipality where such
amusement places are located.
27 July 2009 This Act provides for the development of policies and plans and
the implementation of actions and measures pertaining to all
Republic Act No. 10121 aspects of disaster risk reduction and management, including
good governance, risk assessment and early warning, knowledge
“An Act Strengthening building and awareness raising, reducing underlying risk factors,
The Philippines Disaster and preparedness for effective response and early recovery.
Risk Reduction and (Section 4)
Management System,
Providing for the National The present Local Calamity Fund shall henceforth be known as
Disaster the Local Disaster Risk Reduction and Management Fund
Risk Reduction and (LDRRMF). Not less than five percent (5%) of the estimated
Management Framework revenue from regular sources shall be set aside as the LDRRMF
and Institutionalizing to support disaster risk management activities such as, but not
the National Disaster limited to, pre-disaster preparedness programs including training,
Risk Reduction and purchasing life-saving rescue equipment, supplies and medicines,
Management Plant, for post-disaster activities, and for the payment of premiums on
Appropriating Funds calamity insurance. The LDRRMC shall monitor and evaluate the
Therefor And For Other use and disbursement of the LDRRMF based on the. LDRRMP
Purposes”, otherwise as incorporated in the local development plans and annual work
known as “NDRRMC Law” and financial plan. Upon the recommendation of the LDRRMO
and approval of the sanggunian concerned, the LDRRMC may
transfer the said fund to support disaster risk reduction work of
other LDRRMCs which are declared under state of calamity.
(Section 21)
Of the amount appropriated for LDRRMF, thirty percent (30%)

shall be allocated as Quick Response Fund (QRF) or stand-by
fund for relief and recovery programs in order that situation and
living conditions of people In communities or areas stricken by
disasters, calamities, epidemics, or complex emergencies, may
be normalized as quickly as possible. (Section 21)
110

FORMS AND ANNEXES
Laws Provisions
Unexpended LDRRMF shall accrue to a special trust fund solely
for the purpose of supporting disaster risk reduction and
management activities of the LDRRMCs within the next five (5)
years. Any such amount still not fully utilized after five (5) years
shall revert back to the general fund and will be available for
other social services to be identified by the local sanggunian.
(Section 21)
The present Calamity Fund appropriated under the annual

General Appropriations Act shall henceforth be known as the
National Disaster Risk Reduction and Management Fund
(NDRRM Fund) and it shall be used for disaster risk
reduction or mitigation, prevention and preparedness activities
such as but not limited to training of personnel, procurement of
equipment, and capital expenditures. It can also be utilized for
relief, recovery, reconstruction and other work or services in
connection with natural or human induced calamities which may
occur during the budget year or those that occurred in the past
two (2) years from the budget year. [Section22(a)]
23 October 2009 The registered enterprises operating within the FAB may be
entitled to the existing pertinent fiscal incentives as provided for
Republic Act No. 9728 under Republic Act No. 7916, as amended by Republic Act
No. 8748, also known as the Special Economic Zone Act of
An Act Converting the 1995, or those provided under Executive Order No. 226, as
Bataan Economic Zone amended, otherwise known as the Omnibus Investment Code
Located in the Municipality of 1987. (Section 5)
of Mariveles, Province of
Bataan, into the Freeport No taxes, local and national, shall be imposed on business
Area of Bataan (FAB), establishments operating within the FAB. In lieu thereof, said
Creating for this purpose the business establishments shall pay a five percent (5%) final tax on
Authority of the Freeport their gross income earned in the following percentages:
Area of Bataan (AFAB), 1. One per centum (1%) to the National Government;
Appropriating Funds
Therefor and for other 2. One per centum (1%) to the Province of Bataan;
purposes, otherwise known
as "Freeport Area of 3. One per centum (1%) to the treasurer's office of the
Bataan (FAB) Act of Municipality of Mariveles; and
2009”. 4. Two per centum (2%) to the Authority of the Freeport
of Area of Bataan. (Section 6)
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22 April 2010 The Aurora Ecozone may provide incentives such as tax and
duty-free importations of raw materials, capital and equipment
Republic Act No. 10083 to registered enterprises located therein. However, exportation or
removal of goods from the territory of the Aurora Ecozone to the
An Act Amending Republic other parts of the Philippine territory shall be subject to customs
Act No. 9490, otherwise duties and taxes under the Tariff and Customs Code of the
known as “Aurora Special Philippines, as amended, and the National Internal Revenue Code
Economic Zone Act of (NIRC) of 1997, as amended. [Section 3(f)]
2007” Imposition of a tax rate of five percent (5%) on Gross Income
Earned (GIE). - Except for real property tax on land, no local and
national taxes as prescribed under Republic Act No. 8424, also
known as "The National Internal Revenue Code of 1997, as
Amended" such as income tax, excise tax and franchise taxes,
shall be imposed on registered enterprises operating within the
Aurora Ecozone. In lieu thereof, five percent (5%) of the gross
income earned shall be paid as follows:
“(a) Three percent (3%) to the national government;
“(b) One percent (1%) shall be remitted by the business
establishments in equal shares to the respective treasurer’s office
of the province and the municipality where the enterprise is
located; and
“(c) One percent (1%) shall be remitted by the registered

enterprises to the APECO.
“All persons and service establishments in the Aurora Ecozone

shall be subject to national and local taxes under the National
Internal Revenue Code of 1997, as amended, and the Local
Government Code. [Section 4(c)].
13 November 2002 This Act does not apply to the following:
xxx
Republic Act No. 10173 Information relating to any discretionary benefit of a financial
nature such as the granting of a license or permit given by the
government to an individual, including the name of the individual
An Act Protecting Individual and the exact nature of the benefit
Personal Information and Information necessary in order to carry out the functions of
Communications Systems in public authority which includes the processing of personal data
the Government and the for the performance by the independent, central monetary
Private Sector, Creating authority and law enforcement and regulatory agencies of their
for this Purpose a National constitutionally and statutorily mandated functions. Nothing in
Privacy Commission, and this Act shall be construed as to have amended or repealed
for other Purpose, Republic Act No. 1405, otherwise known as the Secrecy of Bank
otherwise known as “Data Deposits Act; Republic Act No. 6426, otherwise known as the
Privacy Act of 2012” Foreign Currency Deposit Act; and Republic Act No. 9510,
otherwise known as the Credit Information System Act (CISA);
112

FORMS AND ANNEXES
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Information necessary for banks and other financial institutions
under the jurisdiction of the independent, central monetary
authority or Bangko Sentral ng Pilipinas to comply with Republic
Act No. 9510, and Republic Act No. 9160, as amended,
otherwise known as the Anti-Money Laundering Act and other
applicable law [(Section 4 ( c ) ( e ) ( f )]
11 October 2016 Ambisyon Natin 2040 is a national long-term vision that will
serve as a guide for development planning. To ensure sound
Executive Order. No. 5, macroeconomic policy, local government units (LGUs) shall
Series of 2016 remain dependent on the Internal Revenue Allotment (IRA).
Responsible, strategic and supportive fiscal sector can be
achieved by:
Approving and Adopting the
Twenty-Five-Year Long 1. Increasing local sources of LGU revenue, institute legislated
Term Vision Entitled and non-legislated measures – LGUs need to maximize the
revenue-raising powers granted to them by the Local
Ambisyon Natin 2040 as Government Code. Among the potential measures are a)
Guide for Development professionalization of local treasurers through the
Planning, otherwise known Standardized Examination and Assessment for Local
as “Ambisyon Natin Treasury Service Program; b) updating key local finance
manuals to take into account developments in local finance; c)
2040” intensifying LGU fiscal monitoring and performance
evaluation through standardized reporting tools and metrics;
d) establishing the idle land tax in all LGUs; and e)
enjoining LGUs to comply with LGC requirements
concerning local revenue base; and
2. Formulating and implementing expenditure management

reforms – Several measures will be put in place to improve
agency budget utilization and address underspending. These
include: a) strengthening the linkage between planning and
budgeting; b) capacity building for line agencies and other
stakeholders; c) streamlining the release of funds and
development of integrated and user-friendly financial
management system; d) strengthening project monitoring
through modern technology such as integrated systems,
geotagging and mapping; and e) developing a codex for
consistent and efficient application of the Commission on
Audit Rules.
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19 December 2017 Authority of the Commissioner to Prescribe Real Property
Values.— The Commissioner is hereby -authorized to divide the
Republic Act No. 10963 Philippines into different zones or areas and shall, upon
An Act Amending Sections mandatory consultation with competent appraisers both from the
5, 6, 24, 25, 27, 31, 32, 33, private and public sectors, and with prior notice to affected
34, 51, 52, 56, 57, 58, 74, taxpayers, determine the fair market value af real properties
79, 84, 86, 90, 91, 97, 99, located in each zone or area, subject to automatic adjustment
100, 101, 106, 107, 108, once every three (3) years through rules and regulations issued by
the Secretary of Finance based on the current Philippine
109, 110, 112, 114, 116,
valuation standards: Provided, That no adjustment in zonal
127, 128, 129, 145, 148,
valuation shall be valid unless published in a newspaper of
149, 151, 155, 171, 174,
general circulation in the province, city or municipality
175, 177, 178, 179, 180,
concerned, or in the absence thereof, shall be
181, 182, 183, 186, 188,
189, 190, 191, 192, 193, current Philippine valuation standards: Provided, That no
194, 195, 196, 197, 232, adjustment in zonal valuation shall be valid unless published in a
236, 237, 249, 254, 264, newspaper of general circulation in the province, city or
269, and 288; Creating New municipality concerned, or in the absence thereof, shall be posted
Sections 51-A, 148-A, 150-A, in the provincial capitol, city or municipal hall and in two (2)
150-B, 237-A, 264- A, 264- other conspicuous public places therein: Provided, further, That
B, and 265-A; and Repealing the basis of any valuation, including the records of consultations
Sections 35, 62, And 89; All done, shall be public records open to the inquiry of any taxpayer.
Under Republic Act No. For purposes of computing any internal revenue tax, the value of
8424, Otherwise Known as the property shall be, whichever is the higher of:
the National Internal Revenue
Code of 1997, as Amended, “(1) the fair market value as determined by the
and for Other Purposes. This Commissioner; or
law is better known as “Tax
“(2) the fair market value as shown in the schedule of values
Reform for Acceleration
of the Provincial and City Assessors. [Section 4 (e)]
and Inclusion (TRAIN)
Law”
3 November 2015 A duly registered and accredited Microfinance NGO shall pay a
two percent (2%) tax based on its gross receipts from
Republic Act No. 10693 microfinance operations in lieu of all national taxes: Provided,
That preferential tax treatment shall be accorded only to NGOs
An Act Strengthening whose primary purpose is microfinance and only on their
Nongovernment Organizations microfinance operations catering to the poor and low- income
(NGOs) Engaged in individuals in alignment with the main goal of this Act to
Microfinance Operations for alleviate poverty. The non-microfinance activities of
the Poor, otherwise known as Microfinance NGOs shall be subject to all applicable regular
“Microfinance NGOs Act” taxes.
Duly registered and accredited Microfinance NGOs, as well as

their clients, shall be required to have a Taxpayer Identification
Number (TIN): Provided, That this shall be accomplished within
a reasonable time as prescribed, by the Council: Provided,
further, That the relevant government agencies, in coordination
with the Council, shall provide simplified forms and procedures
for securing the TIN. (Section 20)
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FORMS AND ANNEXES
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28 May 2018 All government agencies shall set up a Citizen’s Charter
indicating the most current and updated service standards.
Republic Act No. 11032 (Section 6)
An Act Promoting the Ease No government officer or employee shall have any contact, in
of Doing Business and any manner, except during the preliminary assessment and
Efficient Delivery of evaluation of submitted documents, unless strictly necessary
Government Services, with any application or requesting party concerning an
Amending for the Purpose application or request. (Section 7)
Republic Act No. 9485,
Otherwise Known as the All applications or requests submitted shall be acted upon by the
“Red Tape Act of 2007, assigned officer or employee within the prescribed working
and for Other Purposes”. period which shall not be longer than three (3) working days in
the case of simple transactions and seven
(7) working days in the case of complex transactions from the
date of request and/or complete application or request was
received.
Accessing Government Services; Acceptance of
Applications or Requests; Action of Offices. (Section 9)
Automatic Approval or Automatic Extension of License,
Clearance, Certification or Authorization (Section 10)
A single or unified business application form shall be used in
processing new applications for business permits and business
renewals which consolidates all the information of the applicant
or requesting party by various local governmentdepartments,
such as, but not limited to, the local taxes and clearances,
building clearance, sanitary permit, zoning clearance, and other
specific LGU requirements, including the fire clearance from the
Bureau of Fire Protection (BFP).
The unified forms shall be made available either online using

technology-neutral platforms and thru hard copies which shall
likewise be made available at all times in designated areas of the
concerned office and/or agency. [Section 11(a)]
A Business One Stop Shop (BOSS) for the city/municipality’s

business permitting and licensing system to receive and process
manual and/or electronic submission of application for license,
clearance, permit, certification, or authorization shall be
established within the cities/municipalities’ Negosyo and other
relevant city/municipality offices/departments, among others,
engaged in starting a business, dealing with construction permits.
[Section 11(b)]
Cities/Municipalities are mandated to automate their business

permitting and licensing system or set up an electronic BOSS for
a more efficient business registration processes. [Section 11(c)]
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Other local clearances such as, but not limited to, sanitary
permits, environmental and agricultural clearances shall be
issued together with the business permit. [Section 11(d)]
Business permits shall be valid for one (1) year. The city/
municipality may have the option to renew business permits
within the first month of the year or on the anniversary date of
the issuance of the business permit. [Section 11(e)]
27 July 2018 There is hereby created a Bangsamoro Regional Office of the
Bureau of Local Government Finance under the Department of
Republic Act No. 11054 Finance which shall have the authority to coordinate, assist,
and monitor the treasury and assessments operations of
An Act Providing for the constituent local government units within the Bangsamoro
Organic Law for the Autonomous Region in pursuance of good governance and local
Bangsamoro Automous autonomy. The regional office shall be guided by the
Region in Muslim standards set by the Department of Finance-Bureau of Local
Mindanao, Repealing for Government Finance including the requirements set for the
the Purpose Republic Act appointment of local treasurers. (Section 3)
No. 6734, Entitled "An
Act Providing for An The Bangsamoro Government may create its own sources of
Organic Act for the revenues, and may levy taxes, fees and charges, subject to the
Autonomous Region in provisions of the Organic Law which shall accrue exclusively to
Muslim Mindanao," As the Bangsamoro Government.
Amended by Republic Article XII of this Law provides the provisions on Fiscal
Act No. 9054, Entitled Autonomy.
"An Act to Strengthen The constituent local government units in the Bangsamoro
and Expand the Organic Act Autonomous Region shall continue to exercise the taxing powers
for the Autonomous Region granted under Republic Act No. 7160, otherwise known as the
in Muslim Mindanao", Local Government Code, as amended. (Article XII Section 6)
otherwise known as the
“Organic Law for the The Parliament may grant tax exemptions and incentives which
Bangsamoro shall not diminish national revenues provided that the grant of
Autonomous Region in tax exemption and incentives as provided for under Executive
Muslim Mindanao." or Order No. 458, series of 1991, otherwise known as the “Omnibus
“BBL” Investments Code” shall continue to apply. (Article XII Section
8)
Limitations on the Taxing Powers; Exceptions (Article XII

Section 8)
National Government taxes, fees, and charges collected, other
than tariff and customs duties, shall be shared as follows:
(a) Twenty-five percent (25%) to the National Government
provided that for the first ten (10) years upon the effectivity of the
Organic Law, the share shall accrue to the Bangsamoro
Government, provided, further, that after the first ten (10)- year
period, the National Government may extend the period
116

FORMS AND ANNEXES
Laws Provisions
upon petition of the Bangsamoro Government. (Article XII
Section 10)
The Bangsamoro Revenue Office shall be established for the
assessment and collection of taxes in the Bangsamoro
Autonomous Region. (Article XII Section 11) Payment of Taxes
by Corporations, Partnerships or Firms. (Article XII Section 12)
The Parliament shall enact a law detailing the shares of

constituent LGUs in the seventy-five (75%) share of the
Bangsamoro Government in the national taxes, fees, and charges
collected in the Bangsamoro territorial jurisdiction. (Article XII
Section 13)
Related Laws - LTOM:
1. RA No. 2264 – An Act Amending the Laws Governing Local Governments by Increasing
their Autonomy and Reorganizing Provincial Governments (19 June 1959)
2. RA No. 2370 – Barrio Charter (1 January 1960)
3. RA No. 5185 – Decentralization Act of 1967 (12 September 1967)
4. RA No. 6541 – National Building Code of the Philippines (26 August 1972)
5. PD No. 231 – Local Tax Code (1 July 1973)
6. PD No. 464 – Real Property Tax Code (20 May 1974)
7. PD No. 477 – Decree on Local Fiscal Administration (3 June 1974)
8. PD No. 526 – Supply Management (2 August 1974)
9. PD No. 705 – Revising Presidential Decree No. 389, otherwise known as the Forestry
Reform Code of the Philippines (19 May 1975)
10. PD No. 752 – Credit Financing for Local Governments (25 June 1975)
11. PD No. 853 – Providing for the Classification and Valuation of Timber and Forest Lands
for Purposes of Real Property Tax (19 December 1975)
12. PD No. 921 – Providing for the Administration of Local Financial Services in Metropolitan
Manila, creating Local Treasury and Assessment Districts therein (12 April
1976)
13. PD No. 1375 – Transferring to the Budget Commission the functions of the
Local Government Budget Administration (16 May 1978)
14. Batas Pambansa No. 337 – The Local Government Code (10 February 1983)
15. EO No. 226 – The Omnibus Investments Code of 1987 (16 July 1987)
16. EO No. 392 – Constituting the Metropolitan Manila Authority (9 January 1990)
17. RA No. 7160 – Local Government Code of 1991 (LGC Books 1 to 4) (1 January 1992)
18. RA No. 7227 – Bases Conversion and Development Act of 1992 (13 March 1992)
19. RA No. 7459 – Philippine Investors and Invention Incentives Act – (28 April 1992)
20. RA No. 7922 – Cagayan Special Economic Zone Act of 1995 (24 February 1995)
21. RA No. 7916 (as amended by RA 8748) – The Special Economic Zone Act of 1995
(24 February 1995)
22. RA No. 7924 – Creating the Metropolitan Manila Development Authority or MMDA (1
March 1995)
23. RA No. 8748 – An Act Amending RA No. 7916, Otherwise Known as the “Special
Economic Zone Act of 1995” (1 June 1999)
117

LTOM, 2ND EDITION
24. RA No. 8749 – An Act Providing for a Comprehensive Air Pollution Control Policy and for
Other Purposes. (23 June 1999)
25. RA No. 8756 – Regional Headquarters Law (23 November 1999)
26. RA No. 8792 – Electronic Commerce Act of 2000 (June 14, 2000)
27. RA No. 9009 – An Act Amending Section 450 of Republic Act No. 7160, otherwise known as
the Local Government Code of 1991, by Increasing the Average Annual
Income Requirement for a Municipality or Cluster of Barangays to be
Converted into a Component City. (24 February 2001)
28. RA No. 9136 – Electric Power Industry Reform Act of 2001 or “EPIRA Law” (8 June
2001)
29. RA No. 9178 – Barangay Micro Business Enterprises Act of 2002 (13 November 2002)
30. RA No. 9184 – Procurement Law (10 January 2003)
31. RA No. 9275 – An Act Providing for a Comprehensive Water Quality Management and for
Other Purposes (22 March 2004)
32. RA No. 9400 – An Act Amending Republic Act No. 7227, as amended, otherwise known
as the ‘Bases Conversion and Development Act of 1992”, and for Other
Purposes (20 March 2007)
33. RA No. 9490 – Aurora Special Economic Zone Act of 2007” (29 June 2007)
34. EO 646 – Accessibility of Information on Taxpayers between the Bureau of Internal Revenue
and the Local Government Units for Tax Collection (3 August 2007)
35. RA No. 9513 – Renewable Energy Act of 2008. (16 December 2008)
36. RA No. 9514 – Revised Fire Code of the Philippines of 2008 (19 December 2008)
37. RA No. 9520 - An Act Amending the Cooperative Code of the Philippines to be known as
the “The Philippine Cooperative Code of 2008”. (17 February 2009)
38. RA No. 9640 – Amusement Tax (21 May 2009)
39. RA No. 10121 – An Act Strengthening the Philippine Disaster Risk Reduction and
Management System, Providing for the National Disaster Risk and
Management Framework and Institutionalizing the National Disaster Risk
and Reduction and Management Plan, Appropriating Funds Therefor and
for other purposes (27 July 2009)
40. RA No. 9728 – Freeport Area of Bataan (FAB) Act of 2009 (23 October 2009)
41. RA No. 10083 – Aurora Special Economic Zone Act of 2007 (22 April 2010)
42. RA No. 10173 – Data Privacy Act of 2012 (15 August 2012)
43. RA No. 10693 – Microfinance NGOs Act (3 November 2015)
44. EO No. 5, Series of 2016 – Ambisyon Natin 2040 (11 October 2016)
45. RA No. 10963 – TRAIN Law (19 December 2017)
46. RA No. 11032 – Red Tape Act of 2007 (28 May 2018)
47. RA No. 11054 – Organic Law for the Bangsamoro Autonomous Region in Muslim
Mindanao.” or “BBL” (27 July 2018)
118

FORMS AND ANNEXES
ANNEX 2
Manila 1004
DEPARTMENT ORDER NO. 031-2018

04 May 2018
SUBJECT: GUIDELINES ON THE COMPUTATION AND CERTIFICATION

OF INCOME FOR THE CREATION, CONVERSION, MERGER
OR ABOLITION OF A LOCAL GOVERNMENT UNIT (LGU)
1.0 RATIONALE
This Department Order establishes the rules and guidelines in the attestation or certification of
income relative to the requirement of law in the creation, conversion, merger, or abolition of local
government units (LGUs). Pursuant to Sections 7, 8 and 9 of Republic Act (RA) No. 7160,
otherwise known as the Local Government Code (LGC) of 1991 , and RA No. 90091, the
Department of Finance (DOF) is mandated to attest the income indicator in the creation,
conversion, merger or abolition of LGUs. Likewise, the provincial treasurer and the city treasurer
are mandated by the LGC to certify the income requirement for the creation of municipalities and
for the classification of a city into a highly urbanized city, respectively.
2.0 LEGAL BASES
2.1 Section 7 of the LGC requires that the creation of an LGU or its conversion from one
level to another level shall be based on verifiable indicators of viability and projected
capacity to provide services, to wit: (i) income; (ii) population; and (iii) land area. The
income of such LGU must be sufficient, based on acceptable standards, to provide for
all essential government facilities and services and special functions commensurate with
the size of its population, as expected of the local government unit concerned;
2.2 Section 8 of the LGC prescribes that the division and merger of existing LGUs shall
comply with the same requirements of Section 7 of the LGC. However, such division
shall not reduce the income, population, or land area of the local government unit or
units concerned to less than the minimum requirements prescribed in this Code:
Provided, further, that the income classification of the original local government unit or
units shall not fall below its current income classification prior to such division.
2.3 Section 9 of the LGC further mandates that 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 Book III of the LGC, as certified by the
national agencies mentioned in Section 17 of the LGC to Congress or to the sanggunian
concerned, as the case may be.
1
An Act Amending Section 450 of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, by
Increasing the Average Annual Income Requirement for a Municipality or Cluster of Barangays to be Converted into a
Component City
119

LTOM, 2ND EDITION
2.4 The income requirement for the conversion of municipality or a cluster of barangays into
a component city and for the creation of a province shall be certified by the DOF,
pursuant to Section 450(a), as amended by RA No. 9009, and Section 461(a) of the
LGC, respectively.
For the conversion into a component city, the required locally generated average annual
income for the last two (2) consecutive years shall be at least One Hundred Million Pesos
(Php100,000,000.00) based on 2000 constant prices. While the required average annual
income for the creation of a province shall be not less than Twenty Million Pesos
(Php20,000,000.00) based on 1991constant prices. Provided, that the creation thereof
shall not reduce the income of the original unit or units at the time of said creation to
less than the minimum prescribed requirements.
2.5 The income requirement for the creation or conversion to a municipality and
classification into highly urbanized city shall be respectively certified by the provincial
and city treasurer, pursuant to Section 442(a) and Section 452(a) of the LGC.
For the creation of a municipality or conversion of a barangay int o a municipality, the
required average annual income for the last two (2) consecutive years shall be at least
Two Million Five Hundred Thousand Pesos (Php2,500,000.00), based on 1991 constant
prices. Provided, that the creation thereof shall not reduce the income of the original
municipality or municipalities at the time of said creation to less than the minimum
requirements prescribed herein. While the required latest annual income for the
classification into a highly urbanized city shall be at least Fifty Million Pesos
(Php50,000,000 .00) based on 1991 constant prices.
2.6 Sections 442(c), 450(c), as amended, and Section 461( c) of the LGC, defines the
composition of the average annual income as t he income accruing to the general fund,
exclusive of special funds, trust funds, transfers and non-recurring income.
2.7 Under Department Special Order No. 6-92 dated 21 August 1992, or the Code of
Approving and Signing Authorities, the Bureau of Local Government Finance (BLGF)
of the DOF is mandated to certify the income of LGUs.
2.8 Under Department Order 08-2011 dated 11 February 2011, the electronic Statement of
Receipts and Expenditures (eSRE) is the official report ing system of the DOF on local
fiscal and financial matters, to be maintained by the DOF- BLGF to fully establish a
reliable, accurate and timely reporting and monitoring system in the country.
2.9 Resolution No. 2, series of 2009, entitled “Approving the Synchronized Rebasing of
Price Indices to Base Year 2006” of the National Statistical Coordination Board
(NSCB), now known as the Philippine Statistics Authority (PSA), has approved the
rebasing of the price indices to base year 2006. The PSA has declared through its letters
dated 04 November 2014 and 10 May 2016 that the old Consumer Price Index (CPI)
series will no longer be generated once the new or rebased series becomes available.
3.0 PURPOSE
This Department Order shall be used by the BLGF and the provincial and city treasurers in
attesting and certifying the income requirement for purposes required by the LGC to ensure
uniformity in the computation thereof.
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FORMS AND ANNEXES
4.0 BASIC DATA

The BLGF and the concerned provincial and city treasurers shall use the approved Statement of
Receipts and Expenditures (SRE) submitted by the LGUs through eSRE system for the last two
(2) consecutive years, and four (4) years prior to the issuance of the latest income
reclassification, as the basic data for computing and attesting the income requirement.
5.0 FEATURES OF THE CERTIFICATION

The certification of the average annual income shall be comprised of the following income
requirements:
5.1 Average Annual Income of Proposed LGU;
5.2 Resulting Average Annual Income of the Original LGU or LGUs (in determining
whether the income of the original unit or units at the time of the creation or conversion
will be reduced to less than the minimum requirements prescribed in the LGC); and
5.3 Resulting Average Annual Regular Income of the Original LGU or LGUs (as basis of
the income classification of the original LGU or LGUs at the time of said creation or
conversion).
6.0 DETERMINATION OF ANNUAL INCOME

Based on the definition of annual income cited in the LGC and RA No. 9009, it shall be
composed of income accruing to the general fund, exclusive of special funds, trust funds,
transfers and non-recurring income, and computed as follows:
6.1 Creation of Province, Creation of Municipality or Conversion of Barangay into
Municipality, and Classification of Component City into Highly Urbanized City:
Annual
=
Income Real Property Tax (General Fund) + Tax on Business +
Other Taxes+ Regulatory Fees (Permits and Licenses) +
Service/ User Charges (Service Income) + Receipts from
Economic Enterprises (Business Income)+ Interest
Income+ Shares from Philippine Economic Zone Authority
(PEZA) + Internal Revenue Allotment (IRA)
6.2 Conversion of Municipality/ies or Cluster of Barangays into Component City:

Locally
= Real Property Tax (General Fund) + Tax on Business +
Generated
Annual Other Taxes+ Regulatory Fees (Permits and Licenses) +
Income Service/ User Charges {Service Income) + Receipts from
Economic Enterprises (Business Income) + Interest Income
+ Shares from PEZA
7.0 COMPUTATION OF THE AVERAGE ANNUAL INCOME BY INDEXING

7.1 In the absence of the PSA-issued CPI based on the required base year, the BLGF shall
compute the CPI factor and apply to the average annual income at current prices using
the following steps of indexing approach:
7.1.1. Compute the growth rate of CPI based on available constant price released by
PSA for fiscal year (t) by dividing the difference of current year and prior year
CPI based on available constant prices to prior year
121

LTOM, 2ND EDITION
CPI based on available constant price.

Growth Rate of
CPI based on = CPI based on available constant pricet -CPI
available constant based on available constant pricet-1
pricest CPI based on available constant pricet-1
7.1.2. Estimate the CPI based on required constant price of fiscal year (t) for the
creation of province/municipality and conversion into component city using the
computed growth rate of CPI based on available constant price.
Required
CPlt = (1 + Growth Rate of CPI based on available
constant pricet) x
Required CPlt-1
The CPI based on required constant prices is 100. Hence, computation of the
required CPI factor shall be as follows:
Required
CPlt = CPI based on Required Constant Pricet
100
7.1.3. Divide annual income at current prices by the CPI factor based on required
constant prices, depending on the LGU type to get the annual income at
constant price.
Annual income at con- = Annual income at current pricest
stant prices (AICP)t
Required CPI factor t
7.1.3.1 Creation of Province: compute the annual income at constant prices

received by the province from all the subject municipalities.
7.1.3.2 Conversion into Component City: compute the locally generated
annual income at constant prices of component municipality or cluster
of barangays.
7.1.3.3 Creation of Municipality: compute the annual income at constant
prices received by all the subject barangays.
7.1.3.4 Classification of Component City as Highly Urbanized City: compute
the latest annual income at constant prices of the subject component
city.
7.1.4. Add each annual income at constant price for a given year to get the total annual
income and divide the total annual income by the number of fiscal years to get
the average annual income based on constant prices.
Average Annual income at constant prices

(AICP)t1, t2 = A/CPt1 + AICPt1
2
7.2 To determine if the creation or conversion of an LGU will not reduce the income of the
original unit or units at the time of said creation or conversion to less than the minimum
requirements prescribed in the LGC, compute the reduced average annual income of the
original unit or units by deducting the shares of income of the proposed LGU to the
annual income of the original unit or units.

122

FORMS AND ANNEXES
8.0 RESULTING INCOME CLASSIFICATION OF THE ORIGINAL LGU/LGUs

The average Annual Regular Income of the original LGU/LGUs less than its shares from the
proposed LGU at current prices, shall be the basis in determining the resulting income
classification of the original LGU/LGUs, based on existing policy of the DOF on income
classification.
9.0 RESPONSIBILITIES OF THE BLGF

The BLGF, being the policy and technical arm of DOF in supervising the revenue operations of
all local governments, shall implement this Order and shall be responsible for the following:
9.1 Update annually the CPI Factor based on the available CPI data released by the PSA;
9.2 Provide annually the matrix of CPI table to be used by the provincial and city treasurers
in computing and certifying the lat est annual income;
9.3 Issue the Certificate of Average Annual Income to requesting LGUs and legislators, as
prescribed in the LGC, indicating the result s of the above mentioned income
requirements;
9.4 Capacitate provincial and city treasurers on the process and methodology of computing
and certifying the latest annual income;
9.5 Issue appropriate clarificatory guidelines/updates/advisories relative to the
implementation of this Department Order subject to the direct supervision and approval
of the Undersecretary of Revenue Operations Group; and
9.6 Provide an annual report to the DOF on the certifications issued.
10.0 REPEALING CLAUSE

All department orders, circulars and issuances inconsistent with this Department Order are
hereby repealed or modified accordingly.
11.0 EFFECTIVITY
This Department Order shall be effective fifteen (15) days after completion of its publication in a
newspaper of general circulation.
CARLOS G. DOMINGUEZ
Secretary
123

LTOM, 2ND EDITION
ANNEX 3
Manila 1004
DEPARTMENT PERSONNEL ORDER NO. 477-2019
GUIDELINES ON THE EVALUATION AND PROCESSING OF APPOINTMENTS

OF LOCAL TREASURERS AND ASSISTANT LOCAL TREASURERS
1. LEGAL BASES. This Department Order is issued under the following legal bases:
1.1. Section 470 (a) and 471 (a) of Republic Act (RA) No. 7160, or the Local
Government Code (LGC) of 1991 mandate that the local treasurer and assistant
local 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, subject to civil service law, rules and regulations;
1.2. Section 470 (c) of the LGC of 1991 provides that no person shall be appointed
local treasurer unless one is a citizen of the Philippines , a resident of the local
government unit (LGU) concerned, of good moral character, a holder of a college
degree preferably in commerce, public administration or law from a recognized
college or university, a first-grade civil service eligible or its equivalent, and has
at least five (5) years experience in treasury or accounting service in the case of
the city or provincial treasurer, and three
(3) years in the case of municipal treasurer;
1.3. Section 471 (b) of the LGC of 1991 provides that no person shall be appointed
assistant treasurer unless one is a citizen of the Philippines, a resident of the
LGU concerned, of good moral character, a holder of a college degree preferably
in commerce, public administration, or law from a recognized college or
university, a first-grade civil service eligible or its equivalent, and has at
least five (5) years experience in the treasury or accounting service in the case of
the assistant city or provincial treasurer, and three (3) years in the case of assistant
municipal treasurer;
1.4. Section 2 of Executive Order (ED) No. 292, s. 1987 and Section 65 of EO
No. 127, s. 1987 mandate the DOF to be responsible for the supervision of the
revenue operations of all LGUs, and the Secretary of Finance shall issue such
rules, regulations and other issuances to ensure the effective implementation of the
EO;
1.5. Section 43 (b) of Executive Order (EO) No. 127, s. 1987, and Section 33 (2)
of EO No. 291, s. 1987 mandate the Bureau of Local Government Finance
(BLGF) to exercise administrative and technical supervision and coordination over
the treasury and assessment operations of local governments;
124

FORMS AND ANNEXES
1.6. Civil Service Commission (CSC) Memorandum Circular (MC) No. 6, series
2012 requires the establishment and implementation of the Strategic Performance
Management System in the performance-based evaluation for personnel action;
1.7. Department Order (DO) No. 053.2016 dated 20 Oct 2016 institutionalizes the
Standardized Examination and Assessment for local Treasury Service (SEAL)
Program, and set the Basic Competency on Local Treasury Examination (BCLTE),
the Intermediate Competency on Local Treasury Examination (ICLTE) and the
Advance Competency on Local Treasury Examination (ACLTE) as integral
criteria in selecting and evaluating recommendees for local treasury appointments;
1.8. CSC MC No. 24, s. 2017I Resolution No. 1701009 dated 16 June 2017
(Omnibus Rules on Appointments and Other Human Resource Actions), as
amended by CSC Resolution No. 1800692 dated 03 July 2018 , provide the
rules on the preparation, submission of and actions to be taken on appointments
and other human resource movements of employees appointed to first and second
level positions;
1.9. CSC Resolution Nos. 1701330 and 1701331, both dated 20 September
2017 authorizes the regular offering of BCLTE as a civil service eligibility exam,
leading to Local Treasurer Eligibility, and the ICLTE as a promotional exam,
respectively; and
1.10. CSC MC No. 23, s. 2016, doted15 September 2016, and CSC MC No. 08,
s. 2017, dated 21 March 2017 set the Policy on Employment in the Government
Service of Filipino Citizens with Dual Citizenships.
2. SCOPE AND RATIONALE. To ensure the delivery of quality service standards, the
herein procedural guidelines shall govern the evaluation and processing of
appointments of Provincial, City and Municipal Treasurers, and Assist ant Provincial,
City and Municipal Treasurers by the BLGF Central and Regional Offices.
The BLGF, through its duly constituted Human Resource Merit Promotion and Selection
Boards (HRMPSBs) in the Central Office (CO) and In each Regional Office (RO), shall
adopt the herein criteria and guidelines in determining the best candidate for local
treasury positions to be appointed by the Secretary of Finance, consistent with existing
law, and civil service rules and regulations.
3. GENERAL POLICES. The following general policies shall be observed:
3.1. All CSC rules and regulations on appointment, promotion, transfer, and other
human resource actions, and internal policies of the DOF to determine the
competence and fitness of recommendees for local treasury appointments shall be
complied with;
3.2. The vacant position of Local Treasurer and Assistant Local Treasurer, as the case
may be, shall be published and posted in accordance with RA No.
7041(Publication Law), as amended, for at least fifteen (15) calendar days.
125

LTOM, 2ND EDITION
The filling up of vacant position shall be made after fifteen (15) calendar days
from its publication, which, however, shall not exceed nine (9) months from its
publication.
3.3. Said notice of vacancy shall contain the qualification standards for the
position as provided under RA No . 7160 and shall be posted in at least three
(3) conspicuous places within the LGU and shall be reported to the CSC;
3.4. The recommendation of the local chief executive (LCE) for appointment of
Provincial, City and Municipal Treasurer, and Assistant Provincial, City and
Municipal Treasurer positions shall be in writing and signed by hand, and in
accordance with Sections 470(c) and 471(b) of the LGC. The recommendation of
an Acting LCE shall be in accordance with Sec. 46 of the LGC;
3.5. The recommendation of the LCE for the appointment of the Municipal Treasurer
and the Assistant Municipal Treasurer, as well as the City Treasurer and the Assistant
City Treasurer of component cities, shall be endorsed by the concerned Provincial
Treasurer to the BLGF within five (5) working days from receipt thereof;
3.6. No fees, of whatever nature, shall be collected for the processing of appointment
by the BLGF and the DOF. Moreover, it shall be the sole responsibility of the
concerned recommendees to secure and renew the required clearances,
certifications and other relevant documents, and shall not in any manner be
undertaken by the BLGF;
3.7. There shall be constituted and established the BLGF Central HRMPSB for local
Treasurers, which shall be chaired by the BLGF Executive Director, and the
BLGF Regional HRMPSB for Local Treasurers in every BLGF RO, which shall
be chaired by the concerned BLGF Regional Director, to evaluate the qualifications
and competence of all recommendees of the concerned LCE. In the case of LGUs
in the National Capital Region (NCR), the BLGF Central HRMPSB shall perform
the functions for the purpose;
3.8. Such HRMPSBs shall convene at least once every quarter and shall be supported
by appropriate members and staff to perform secretariat and technical support
functions, to be constituted by the respective chairs. The concerned Provincial
Treasurer or his/her duly authorized alternate shall be designated as ex officio
member of the BLGF Regional HRMPSB for deliberations of local treasury
appointments in component cities and municipalities.
3.9. The BLGF Regional 1-TRMPSB for Local Treasurers shall evaluate and rank the
recommendees, formalized through a Regional HRMPSB Resolution, with a duly
signed summary of ratings and the required documents to be submitted to the
BLGF Central HRMPSB for Local Treasurers, which in turn shall evaluate the
same and formalize the final deliberations through a Central HRMPSB Resolution;
126

FORMS AND ANNEXES
3.10. To further assess the candidates’ capacity for the position, interview of the
recommendees of the LCE by the BLGF Executive Director, in the case of LGUs
in the NCR, or by the BLGF Regional Director, in the case of LGUs within the
regional jurisdiction, shall be conducted before submitting the same to the BLGF
Central HRMPSB; and
3.11. All appointments signed by the Secretary of Finance and officially released to the
BLGF shall be immediately transmitted to the appointed local treasurer or assistant
local treasurer, copy furnished the concerned regional office, in order that said
local treasurer or assistant local treasurer can immediately take his/her oath of
office and assume the duties of the position.
4. CRITERIA FOR EVALUATION. In evaluating all the recommendees of the LCE,
the following qualifications and attributes shall be weighted:
4.1. Education: College degree, preferably in commerce, public administration or
law, from a recognized college or university;
4.2. Experience in treasury or accounting servlce1: Provincial and City
Treasurers or Assistant Provincial and City Treasurers: At least five (5)
years; Municipal Treasurers or Assistant Municipal Treasurers: At least three
(3) years;
4.3. Performance: At least ‘Very Satisfactory’ rating in the last rating period 2 prior
to the assessment or screening;
4.4. Relevant Training3: Completion of trainings, scholarships, and other capacity
building interventions relevant to the duties and functions of the position
undertaken within the last five (5) years reckoned from the date of LCE
recommendation;and
4.5. Other Related Criteria and Attributes: To further establish competency and
fitness, additional criteria and attributes shall be evaluated and weighted, namely:
(i) Salary Grade/Rank; (ii) Previous Designation in the Local Treasury Service;
(iii) Post-graduate Degree/s; (iv) Bar and/or Professional license; (v) SEAL
certification; and (vi) Interview by the BLGF.
Further, in evaluating previous designations of recommendees, only the
designations as assistant local treasurer shall be given weight for appointments to
assistant local treasurer position, while designations as local treasurer shall be
given weight for appointment to both local treasurer and assistant local treasurer
positions. The weights for SEAL certification,per
1 Experience refers to the previous jobs in either the government or private sector whether full-time or part-
time, which, as certified by the Human Resources Management Officer or authorized officials of the
previous
employer, are functionally related to the duties In the PDF of the position to be filled. (Sec. S6 Part Ill of CSC MC
No. 24, s. 2017). Relevant experience acquired through a designation covered by an Office or Memorandum
Order may be considered for meeting the experience requirement (Sec. 60 Part Ill of CSC MC No. 24, s. 2017)
2 CSC Resolution 1800692, promulgated on 02 July 2018
3 Trainings/learning and development Interventions intended to enable the candidate to successfully perform
the duties and responsibilities as Indicated In the PDF or ID of the position to be filled. Sec 61 Part IV of CSC
MC No. 24, s. 2017
127
LTOM, 2ND EDITION
DO No. 053.2016, are hereby amended, as follows: 10% for BCLTE, 15%
for ICLTE, and 20% for ACLTE.
The table of criteria and the respective weight allocations is hereto attached as Annex
All mandatory requirements required under the LGC and CSC rules that have no point
allocation or determined on a pass-fail basis, such as citizenship 4, residency5, good
moral character6, eligibility7 and non-nepotic relationship8, together with the applicable
clearances and certifications, shall be fully evaluated by the BLGF.
5. EVALUATION PROCESS
5.1. Notwithstanding any prior processing by the concerned local government to
ensure completeness of documents and evaluation of candidates, which is hereby
encouraged, there shall be established a two-level evaluation process for all
recommendees of the LCEs for appointment to local treasurer and assistant local
treasurer positions, which shall at all times require due diligence and shall be
promptly acted upon by the BLGF, as follows:
5.1.1. The First Level Process (Initial Screening) shall be done by the BLGF
Regional HRMPSB for Local Treasurers to rank all recommendees
according to Item 4 hereof and determine the completeness/ sufficiency and
authenticity of documentary requirements. This shall commence upon full
compliance with the documentary requirements of all recommendees. The
result of the Regional Screening, together with all the supporting
documents, shall be indorsed to the BLGF CO. The same process shall
apply in the case of LGUs in the NCR, to be acted upon by the
Administrative Division of the BLGF CO; and
5.1.2. The Second Level Process (Final Deliberation) shall be undertaken by the
BLGF Central HRMPSB for the final screening and deliberations of the best
qualified and the most competent candidate to the position.
5.2 Any application or recommendation submitted to the DOF or the BLGF Central
and Regional Offices that are not compliant with the required documents has thirty
(30) days to complete the same, after which the entire set of documents shall be
immediately returned without action to the concerned LGU, with appropriate
notification. The same process shall apply to LGUs within the NCR to be acted
upon by the Administrative Division of the BLGF Central Office.
5.3 All proposed candidates for appointment to Provincial, City and Municipal
Treasurer and Assistant Provincial, City and Municipal Treasurer positions that
have been evaluated and deliberated upon by the BLGF Central
HRMPSB for Local Treasurers shall be submitted to the Undersecretary for
4 Filipino citizenship per CSC Memorandum Circular No. 23, s. 2016
5 A resident of the loc.11 government unit concerned per Sec. 470 (c) and Sec. 471 (b) of the LGC
6 Of good moral character per Sec. 470 (c) and Sec. 471 (b) of the LGC
7 First-grade civil service eligibility per Sec. 470 (c) and Sec. 471 (b) of the LGC, or its equivalent per CSC
Resolution No. 1701330
8 Sec. 79 of the LGC: No person shall be appointed In the career service of the local government if he is related
within the fourth civil degree of consanguinity or affinity to the appointing or recommending authority.
128

FORMS AND ANNEXES
Revenue Operations Group, who shall review and indorse the same to the
Secretary of Finance for final action.
6. RESPONSIBILITY OF THE BLGF. The BLGF Executive Director shall be
authorized to issue guidelines or circulars relative to and consistent with this Order to
ensure streamlined implementation, due diligence, and continual improvement of service
delivery standards, such as the prescribed documentary requirements for each level of
HRMPSB evaluations, checklists and templates, step-by-step procedures, certification of
completeness and orderliness of required documents, and comparative evaluation
matrices, among others. Any adjustments on weights and allocations of Annex “’A”’
hereof shall be upon the approval of the Undersecretary of Revenue Operations Group.
7. REPEALING CLAUSE. This Order effectively repeals Local Administrative
Regulations No. 1-85, dated February 7, 1985. All other DOF orders and issuances or
parts thereof that are inconsistent herewith are hereby repealed or modified and amended
accordingly.
8. EFFECTIVITY. This Department Order shall take effect immediately.
All BLGF officials and employees are hereby enjoined to properly, efficiently and
strictly implement the provisions of th is Order within their respective jurisdictions.
CARLOS G. DOMINGUEZ
Secretary
129

LTOM, 2ND EDITION
Annex A
DETAILED CRITERIA FOR EVALUATION

The following qualifications and attributes shall be evaluated and rated numerically by the
concerned BLGF HRMPSBs for Local Treasurers:
CRITERIA POINT SCORE

1. Education from a recognized college or university
a. Commerce, Public Administration or Law Degree 15 15
b. Other College Degrees 10
2. Experience in treasury or accounting service
Provinces and Cities Municipalities
a.15 years or more a. 10 years or more 20
b. 5 years to < 10years
20
b. 10 years to < 15years 18
c. over 5 years to < 10years c. over 3 years to < 5 years 16
d. at least 5 years d. at least 3 years 14
3. Applicable DOF Examination/Certification
a. SEAL 3 Certification (ACLTE) 20
b. SEAL 2 Certification (ICLTE) 15
20
c. SEAL 1 Certification (BCLTE) 10
4. Performance Rating in the last 2 rating periods
a. Outstanding 10 10
b. Very Satisfactory 8
5. Relevant Training
a. Above 40 hours 10
a. Above 120 hours 10
b. 120 hours minimum b. 40 hours minimum 8
6. Rank/Salary Grade (SG)
a. SG 24 and above 5
b. SG 18 to SG 23 4 5
c. SG 11 to SG 17 3
d. SG 10 and below 2
7. Previous Designation as Acting/OIC/ICO Local
Treasurer or Acting/OIC/ICO
Non-LT/Non-ALT Regular LT/Regular ALT
a. 3 years or more a. 2 years or more 9 9
b. 2 years to < 3 years b. 1 year to < 2 years 7
c. 1 year to < 2 years c. 6 months to < 1 year 5
d. At least 6 months to <1 year d. At least 3 months to <6 months 3
8. Other Additional Points
8.1 Bar/RA 1080 Passer/Professional License Holder* 3
8.2 Post Graduate Degree 3 8
8.3 Post Graduate Diploma and Certificate 1
8.4 Collegiate/Post Graduate Honors Awards 1
10. Interview by the BLGF Executive Director or
3 3
Regional Director
Total 100
130

FORMS AND ANNEXES
ANNEX 4
REPUBLIC OF THE PHILIPPINES
8th Floor EDPC Building, Bangko Sentralng Pilipinas Complex
Roxas Boulevard, Manila 1004• Telefax Nos. 527-2780 / 527-
2790 E-mail: blgf@blgf.gov.ph
BLGF MEMORANDUM CIRCULAR NO. 025-

2019
OCT 03 2019
TO : All BLGF Central and Regional Officials and Employees;

All Provincial, City and Municipal Treasury Offices;
and Others Concerned
SUBJECT : Guidelines on the Evaluation and Processing
of Appointments of Local Treasurers and Assistant
Local Treasurers
This Memorandum Circular is issued to inform all concerned of the herein attached
Department Personnel Order (DPO) No. 477.2019, dated 04 Jun 2019, issued by
the Secretary of Finance, on the Guidelines on the Evaluation and Processing of
Appointments of Local Treasurers and Assistant Local Treasurers, thereby
prescribing the streamlined documentary requirements and evaluation criteria, integrating
the Standardized Examination and Assessment for Local Treasury Service (SEAL) Program,
under Department Order No. 053.2016, dated 20 Oct 2016, and setting the two-level
screening process for evaluation by BLGF Regional Offices (ROs) and Central Office (CO).
In line with Section 71 of the said DPO and pursuant to the BLGF Quality Policy,
the following supplementary guidelines are hereby issued for compliance by all concerned,
consistent with all applicable civil service rules and regulations:
1. Publication and Posting of Vacancy. Per Item Nos. 3.2 and 3.3 of DPO No.
477.2019, the publication and posting of the vacant position of Local Treasurer
(LT) or Assistant Local Treasurer (ALT), in accordance with RA No. 7041, as
amended, for at least fifteen (15) calendar days, shall first be complied with. The
filling up of the vacant position shall be made after fifteen
(15) calendar days from its publication, but shall not exceed nine (9) months from
the date of publication. Such notice of vacancy shall strictly contain the
qualification standards, as provided under Sections 470 and 471 of Republic Act
(RA) No. 7160 or the Local Government Code (LGC) of 1991, and shall be posted
in at least three (3) conspicuous places within the concerned LGU, and shall be
reported to the Civil Service Commission (CSC).
2. Prescribed Documentary Requirements. The basic documentary
requirements for processing the appointments of LT and ALT are provided in
Annex A, for First Level Process (Initial Screening), and Annex B, for Second
Level Process (Final Deliberation). The sample letter of recommendation of
131
LTOM, 2ND EDITION
the local chief executive (LCE) is provided under Annex C hereof. The LGU,
through its Human Resource Management Officer, shall:
a. Require each recommendee to submit all documentary requirements listed
in Item A of Annex A and ensure the completeness of information;
b. Prepare the documentary requirements in Item B of Annex A; and
c. Consolidate, label, tab and properly file in a docket or binder all documents
enumerated in Annex A, together with the letter of recommendation of the
LCE (Annex C) as cover.
3. Requisites in the Submission of Letter of Recommendation of the
LCE. The letter of recommendation with supporting documents shall be submitted
to the BLGF RO, through the Provincial Treasurer, in the case of municipalities
and component cities, and to the BLGF CO Administrative Division, in the case of
LGUs in the National Capital Region (NCR), for pre- evaluation and initial
screening. If the recommendation is made by the LCE in Acting Capacity,
compliance with Sec. 46 of RA No. 7160, or the LGC, shall be observed.
4. Constitution of the BLGF HRMPSB. The BLGF Regional HRMPSB of each
BLGF RO shall be chaired by the concerned BLGF Regional Director, and
composed of ranking Bureau personnel. The concerned Provincial Treasurer or
his/her duly authorized ranking alternate shall serve as ex officio member thereof
in screening local treasury appointments in component cities and municipalities,
per Item Nos. 3.7 and 3.8 of DPO 477.2019. The BLGF Central HRMPSB shall be
chaired by the BLGF Executive Director, and composed of ranking Bureau
personnel, per Item Nos. 3.7 and 3.8 of DPO 477.2019.
5. First Level (Initial Screening) Process. The concerned BLGF Action Officer
shall pre-evaluate the LGU’s compliance with the documentary requirements and
provide immediate feedback. In case the documents submitted are found
incomplete or deficient, the LGU shall be properly notified using the form
prescribed in Annex D hereof. The evaluation of the documents shall be certified
as to completeness and orderliness, per Annex E hereof, and submitted to the
BLGF Regional and Central HRMPSBs for deliberations.
The BLGF HRMPSB shall deliberate and rank the recommendees for LT and/ or
ALT position/s. It shall comparatively evaluate all recommendees using Annex F
hereof. Interview of recommendees by the BLGF Regional Director or Executive
Director, as the case may be, shall be required to further evaluate the candidates’
capacity for the position, and the corresponding points shall be included in the
evaluation sheet. The results of each deliberation shall be formalized through a
Board Resolution, and supported by duly signed summary of ratings, including all
the First Level documentary requirements and the accomplished compliance
certification, to be submitted to the BLGF Central HRMPSB.
132

FORMS AND ANNEXES
6. Second Level (Final Deliberation) Process. The BLGF Central HRMPSB

shall conduct the corresponding Second Level process for the final deliberation of
all recommendees. The BLGF CO Administrative Division shall communicate the
results to the BLGF RO to inform the concerned recommendee of the submission
of the documentary requirements specified in Annex B hereof. Upon completion
of all the required documents, the BLGF Central HRMPSB Chairperson shall
endorse the proposed appointment papers to the Secretary of Finance, through the
Undersecretary of Revenue Operations Group (ROG), for final action, together
with the certification as provided in Annex F hereof. As part of due diligence, the
BLGF Office of the Executive Director, the ROG Office of the Undersecretary,
and/or the DOF Office of the Secretary may require additional information or
clarification whenever warranted.
7. Return Without Action Policy. All recommendations or documents received by
the BLGF RO or CO that are not compliant with the requirements shall be given
up to thirty (30) days upon issuance of notification to complete the same. If after
the lapse of the said period the requirements remain to be completed, the entire
set of documents shall be immediately and formally returned without action to the
concerned LCE. In cases of individual applications received by the BLGF, the
same shall be immediately referred to the concerned LCE for appropriate action.
8. Issuance of Appointment Papers. All appointments signed and issued by
the Secretary of Finance shall be subject for attestation by the CSC. The same are
not covered by Section 18 Rule VI of the ORAOHRA, which requires the
concurrence of the majority of all the members of the local Sanggunian to approve
such appointments, inasmuch as the appointing authority is the Secretary of
Finance.
As per Item No. 3.11 of DPO No. 477.2019, a certified true copy of the
appointment shall be issued to the appointee, through the BLGF, copy furnished
the LCE, in order that said appointee can immediately take his/ her oath of office
and assume the duties of the position. In cases where the nature of the
appointment issued involves promotion or transfer from another agency or LGU to
another, the appointee shall seek an Authority to Transfer from the head of the
agency where he/she is employed prior to assumption, which shall be submitted to
the BLGF CO. Upon receipt of the copy of appointment, the appointed LT or ALT
shall submit to the CSC Field Office, through the BLGF CO Admin Division, the
following:
a. Duly acknowledged, signed and dated Appointment Paper;
b. Copy of the Oath of Office; and
c. Clearance Form (CSC Form No. 7).
9. Administrative Costs. All administrative costs related to the conduct of
screening and deliberations by the BLGF ROs and CO shall be chargeable to the
concerned BLGF office funds only. No fees, of whatever nature, shall
133

LTOM, 2ND EDITION
be collected for the processing of appointments from the LGU or individual recommendees.
10. Effectivity. This Memorandum Circular shall take effect immediately and all
proposed appointments pending at the BLGF RO level shall be evaluated in
accordance with the herein guidelines. All BLGF Regional Directors are
enjoined to strictly comply with the herein rules, and to immediately and widely
disseminate the same to all concerned under their respective jurisdictions.
All concerned shall be guided accordingly.
NIÑO RAYMOND B. ALVINA

Executive Director
Attachments
Annex A First Level Basic Documentary Requirements for Appointment of L Ts and ALTs
Annex B Second Level Documentary Requirements for Appointment of LTs and ALTs
Annex C Sample Letter of Recommendation of Local Chief Executive
Annex D Notification of Deficiency in Documentary Requirements
Annex E First Level Compliance Evaluation of Requirements for Appointment
Annex F Second Level Compliance Evaluation of Requirements for Appointment
Annex G Comparative Evaluation Sheet
134

FORMS AND ANNEXES
ANNEX A
First Level Basic Documentary Requirements
Document Remarks
1. Personal Data Sheet (PDS) - CSC Form No. 212, with the
following: 3 Originals*
1.3 Office Order for Designation as Treasurer/Assistant 1 Certified Copy
Treasurer each
1.4 Sworn Certificate of Employment (for private work
experience) 1 Photocopy
1.4 Latest Approved Appointment (if applicable) 1 Certified Copy
1.5 Certificate of Residency1 1 Original
2. Certificate/s of Eligibility
2.1 Civil Service Commission for CSP and/or BCLTE 1 Authenticated
Copy for each
2.2 Professional Regulation Commission (PRC)
applicable eligibility
2.3 Bar
1 Certified Copy
3. Relevant Training Certificates2 each
1 Certified Copy
4. Performance Evaluation for the last two (2) rating periods3 each
B. LGU Requirements
1. Recommendation Letter of Local Chief Executive, with the
following: 1 Original*
1.1 Sworn Statement of Non-Prohibited Relationship4 1 Original*
1.2 Certification of Availability of Funds5 1 Original
1.3 Approved Plantilla Schedule for the current year 1 Certified Copy
1.4 Publication of Vacancy (not beyond 3 months old)
and Posting, with Qualification Standards6 1 Original
1.7 If applicable, provide justification/certification for: 1 Original for each
a. Quantum Leap in Salary Grade applicable case or
b. Dearth of Applicants/Inclusion of Applicants from Other include in the
LGUs recommendation
c. Non-inclusion of Next-in-Rank Employees letter
1.8 Government Issued ID with Photo and Signature of LCE 1 Certified Copy
Additional Requirement for Assistant Local Treasurer:

Certificate of Compliance with Sec. 325 of Republic Act No. 71607
* Original document must be signed by hand.

1 Certificate issued by the concerned Barangay Chairman and stating the candidate’s good moral character
2 Maximum ot 120 hours for the last 5 years for PT/CT: and 40 hours for the last 5 years for MT
3 Reckoned from the date of recommendation of the LCE
4 Certificate must state that the nominee is not within the 4th degree of affinity or consanguinity of the LCE
5 Certificate issued by the concerned Local Accountant or Budget Officer stating the authorized salary rate,
salary grade and item number of the position
6 The Qualifications Standards to be published and posted must follow Section 470 and 471 of Republic Act No.
7160
7 Signed by hand by the LCE and Local Accountant stating that the filling up of the position complies with
Section 325a of the LGC
135

LTOM, 2ND EDITION
ANNEX B
Second Level Basic Documentary Requirements
Document Remarks
1. Transcript of Records (except for recommendees who are already 1 Authenticated
regularly appointed Local Treasurer/Assistant Local Treasurer) Copy for each
academic degree
2. Latest Sworn Statement of Assets, Liabilities, and Net Worth
1 Original
(SALN)
3. Medical Certificate - Latest CSC Form No. 211 1 Original
4. Valid Clearances and Certificate/s of No Pending Case (if with pending case/s,
provide Case Summary/ies):
4.4 BLGF (only for recommendees who are already appointed
1 Original
LT/ALT
4.5 LGU or NGA (only for recommendees who are appointed
1 Original
government personnel)
5. Marriage Certificate (for married female only) 1 Certified Copy
6. Acceptance of Lower Salary (if applicable) 1 Original
136

FORMS AND ANNEXES
ANNEX C
Sample Letter of Recommendation of Local Chief Executive
Date
NINO RAYMOND B. ALVINA
Executive Director
Bureau of Local Government Finance Manila
Thru: [NAME OF REGIONAL DIRECTOR]
Regional Director, BLGF Regional Office No.
Dear Executive Director ALVINA:
In the exigencies of the service and in view of the vacancy of the [Provincial/City/
Municipal Treasurer/Assistant Treasurer] of this [Province/City/Municipality], I am
recommending the following personnel for the Bureau’s evaluation from which the
Secretary of Finance shall appoint, in accordance with Republic Act No. 7160 and DOF
Department Personnel Order No. 477.2019, to wit:
Remarks/Brief Summary
Name Position, Official Station
of Qualifications
1.
2.
3.
add rows if there are additional recommendees
Please find enclosed herein the following supporting documents for your perusal:
1. Personal Data Sheet and other supporting documents of the above
recommendees;
2. Sworn Statement of Non-Prohibited Relationship with the above
recommendees;
3. LGU Certification of Availability of Funds;
4. Approved Plantilla Schedule of the LGU for the current year;
4. Publication of Vacancy and Posting;
5. Certificate of SPMS Compliance from CSC;
6. Other justifications (if applicable); and
7. Government-issued ID with Photo and Signature of the undersigned.
Thank you.
Sincerely yours,
[Signature]
[NAME OF GOVERNOR/MAYOR]
[Position]
137

LTOM, 2ND EDITION
ANNEX D
NOTIFICATION OF DEFICIENCY IN DOCUMENTARY REQUIREMENTS
MAYOR/GOVERNOR
Province/City/Municipality of
Subject : Notice of Deficiency of Requirements for Local Treasury
Appointment
Dear Mayor/Governor
This has reference to the proposed appointment of Provincial/City/Municipal
Treasurer/Assistant Treasurer of the Province/City/Municipality of , per your
letter of recommendation dated , received by this Office on .
Please be informed that upon perusal of the documents submitted, the following
deficiencies and observations have been found:
Name of Recommendee:
Documentary Requirement from Individual Remarks/Instruction
1.
2.
3.
Documentary Requirement from LGU Remarks/Instruction
1.
2.
3.
In accordance with the policy of this Bureau, it is respectfully requested that the above-
listed documents be fully accomplished and completely submitted within thirty
(30) days from receipt of this notification. Otherwise, we will be constrained to return
the entire set of documents for appointment without action. Thank
you.
Very truly yours,
Name and Signature of Regional Director
138

FORMS AND ANNEXES
ANNEX E
COMPLIANCE EVALUATION OF REQUIREMENTS FOR APPOINTMENT
First Level Process: BLGF Regional Office No.
Name of LGU Name of LCE

Position Salary Grade I PhP
Instructions: Please mark “C” if the requirement Is fully complied, and “NA” if not applicable. This Certification must be
submitted to the BLGF Central Office only when the 1• Level Requirements have been fully complied, and collated.
Document Remarks Evaluation

1. PDS - CSC Form No. 212, with the following: 3 Originals
1.3 Previous Office Order of 1 Certified Copy
Designation as LT/ALT, if any each
1.4 Sworn Certificate of Employment
1 Photocopy
(for private work experience)
1 .4 Latest Appointment (if applicable) 1 Certified Copy

1.5 Certificate of Residency 1 Original
2. Certificate/s of Eligibility 1 Authenticated
2.1 CSC for CSP and/or BCLTE Copy for each
applicable
2.2 PRC/Bar eligibility
1 Certified Copy
3. Relevant Training Certificates
each
4. Performance Evaluation (last two(2) rating periods) 1 Certified Copy
each

1. Letter Recommendation of Local Chief Executive, w/
1 Original
the following:
1.1 Sworn Statement of Non-Prohibited Relationship
1 Original
1.2 Certification of Availability of Funds 1 Original

1.3 Approved Plantilla Schedule (current year) 1 Certified Copy
1.4 Publication of Vacancy (not > 3 months old) and
1 Original
Posting, w/ QS
1.7 Justification/certification (if applicable):
1 Original for
a. Quantum Leap in Salary Grade each case or
b. Dearth of Applicants/Inclusion of Applicants include in the
from Other LGUs letter
c. Non-inclusion of Next-in-Rank Employees
139

LTOM, 2ND EDITION
1.8 Government-Issued ID with Photo and

1 Certified Copy
Signature of LCE
2. Certificate of Compliance with Section 325 of LGC (in
1 Original
the case of ALT)
This is to CERTIFY that the BLGF Regional HRMPSB has received and evaluated the
documents for the appointment of
in the Province/City/Municipality of , finding
said documents complete, in order, and in accordance with existing rules and
regulations.
Issued by: Noted by:
Name and Signature Name and Signature

of BLGF Action Officer/Secretary of BLGF Regional Director
Date: Date:
140

FORMS AND ANNEXES
141

LTOM, 2ND EDITION
ANNEX F
COMPLIANCE EVALUATION OF REQUIREMENTS FOR APPOINTMENT
Second Level Process: BLGF Central Office
Name of LGU Name of LCE

Position Salary Grade I PhP
Instructions: Please mark ·c· if the requirement is fully complied, and” NA” if not applicable. This certification, together with
the subject documents, shall be submitted to the BLGF Central HRMPSB.

1 Authenticated
1.Transcript of Records (except for recommendees who are already regularly appointed Local Copy for each
Treasurer/Assistant Local Treasurer) academic degree
2. Latest SALN 1 Original

3. Medical Certificate (CSC Form No. 211) 1 Original
4. Valid Clearances and Certificate/s of No Pending Case (if with pending easels, provide Case Summary/ies):

4.4 BLGF (only for recommendees who are already appointed LT/ALT) 1 Original
4.5 LGU or NGA (only for recommendees who are appointed govemment personnel)
1 Original
1 Certified
5.Marriage Certificate (for married female only)
Copy
6.Acceptance of a Lower Salary (if applicable) 1 Original
This is to CERTIFY that the BLGF Central HRMPSB has received and evaluated the
documents for the appointment of in the
Province/City/Municipality of , found said
documents complete, in order, and in accordance with existing rule s and regulations.
Issued by: Noted by:
Name and Signature Name and Signature

of BLGF Action Officer of BLGF Central HRMPSB Secretary
Date: Date:
142

FORMS AND ANNEXES
BLGF Human Resource Merit Promotion and

ANNEX G • BLGF COMPARATIVE MATRIX OF E
NAME OF LGU IC POSITION TO BE
Name of Regular Incumbent Status of Regular Incumben

NAME OF RECOMME
Current Position &
CRITERIA POINT SCORE
Particulars
1. Education from a recognized college or university

a. Commerce, Public Administration or Law Degree 15 15
b. Other College Degrees 10
2. Experience in treasury or accounting service

a.15 years or more a. 10 years or more 20
18
20
b. 10 years to < 15years b. 5 years to < 10years
c. over 5 years to < 10years c. over 3 years to < 5 years 16
d. at least 5 years d. at least 3 years 14
3. Applicable DOF Examination/Certification

a. SEAL 3 Certification (ACLTE) 20
b. SEAL 2 Certification (ICLTE) 15
20
c. SEAL 1 Certification (BCLTE) 10
4. Performance Rating in the last 2 rating periods

a. Outstanding 10 10
b. Very Satisfactory 8
5. Relevant Training
Provinces and Cities Municipalities 10
a. Above 120 hours a. Above 40 hours 10
b. 120 hours minimum b. 40 hours minimum 8
6. Rank/Salary Grade (SG)
a. SG 24 and above 5
b. SG 18 to SG 23 4 5
c. SG 11 to SG 17 3
d. SG 10 and below 2
7. Previous Designation as Acting/OIC/ICO Local Treasurer

or Acting/OIC/ICO
Non-LT/Non-ALT Regular LT/Regular ALT
a.
3 years or more a. 2 years or more 9
9
b.
2 years to < 3 years b. 1 year to < 2 years 7
c.
1 year to < 2 years c. 6 months to < 1 year 5
d.
At least 6 months to <1 year d. At least 3 months to <6 months 3
8. Other Additional Points
8.1 Bar/RA 1080 Passer/Professional License Holder* 3
8.2 Post Graduate Degree 3
8
8.3 Post Graduate Diploma and Certificate 1
8.4 Collegiate/Post Graduate Honors Awards 1
10. Interview by the BLGF Executive Director or Regional

3 3
Director
Total 100 -
Publication Prepared by: Recommending

Date Issued
Expiration Date
Regional HRMPSB Secretary Regional HRM
Date Signed: Date Signed: _
143

LTOM, 2ND EDITION
Selection Board (HRMPSB) for Local Treasury

VALUATION· LOCAL TREASURY APPOINTMENT
FILLED RECOMMENDING LCE SALARY GRADE ITEM NO.:
t/Reason of Vacancy
NDEE NO. 1 NAME OF RECOMMENDEE NO. 2 NAME OF RECOMMENDEE NO. 3
Office Current Position & Office Current Position & Office
RO CO RO CO RO CO
Particulars Particulars
Score Score Score Score Score Score
- - - - - - - -
Approval: CO Final Evaluation: Confirmed per CO Deliberations
PSB Chair Central HRMPSB Secretary Central HRPMSB Chair

Date Signed: Date Signed:
144

FORMS AND ANNEXES
ANNEX 5: UPDATED CODE OF APPROVING AND SIGNING

AUTHORITIES (CASA) OF THE BUREAU OF LOCAL
GOVERNMENT FINANCE (BLGF)
Under Department Special Order No. 01-2018 dated 09 November 2018, the following
approving and signing authorities have been delegated to the Bureau of Local Government
Finance and certain functions have been clarified as follows:
Initial Action / Final
Function and Responsibility Recommendation- Action /
Indorsement Approval*
1. Department Orders, Circulars, and
ED - USec SOF
Regulations
2. Travel Authority for Foreign Travel (Official and Personal)
2.1. NCR: LT / ALT LCE - AFMSD - DED ED
2.2. Regions: LT / ALT LCE - RD - DED ED
3. Appointment and Other Personnel actions
3.1. Appointment
LCE - AFMS - DED -
3.1.1 NCR: LT/ALT SOF
ED
3.1.2 Regions: LT/ALT LCE - RD - DED - ED SOF
3.2. Oath and Assumption of Office LCE / RD / ED / SOF
3.3. Cancellation of Appointment
LCE - AFMSD - DED
3.3.1. NCR: LT/ALT SOF
- ED
LCE - RD - DED -
3.3.2 Regions: LT/ALT SOF
ED
3.4. Recommendation for Extension of Service
3.4.1. NCR: LT /ALT LCE - AFMSD - DED ED
3.4.2. Regions: LT / ALT LCE - PT - RD - DED ED
3.5. Secondment
3.5.1. NCR: LT/ALT LCE - AFMSD - DED ED
3.5.2. Regions: LT/ALT LCE - PT - RD - DED ED
3.6. Original Designation (including Authority for the Payment of RATA) and
Extension Thereof
LCE - AFMSD - DED
3.6.1. NCR: LT/ALT SOF
- ED
3.6.2. Regions: LT/ALT LCE - PT RD
3.7. Confirmation of RSPOs on Designations AFMSD - DED ED
4. Actions on Reassignment and Detail
LCE - AFMSD - DED
4.1. NCR: LT/ALT SOF
- ED
4.2. Regions: LT/ALT LCE - PT - RD - DED ED
5. Action on Letter of Resignation; and Indorsement of Optional/Compulsory Retirement
5.1. NCR: LT/ALT LCE - AFMSD - DED ED
145

LTOM, 2ND EDITION

5.2. Regions: LT/ALT LCE - PT - RD - DED ED
6. Applications for Leave
6.2. Regions: LT/ALT LCE RD
7. Setting of Performance Targets for LT and
LFPSD - DED ED
ALT
8. Approval of Performance Assessment/Evaluation
8.2. Regions: LT/ALT LCE - PT RD
9. Approval of Loan Applications and Agreements under
the Assessment Loan Revolving Fund (PD No. 1002) LGUOSD - DED ED
10. Administrative Discipline

10.1. NCR: LT / ALT
10.1.1. Order to Comment/Issue
LSD - DED ED
Show-cause Order
10.1.2. Preliminary Investigation Report - PI Team
10.1.3. Resolution of Complaint LSD - DED ED
10.1.4. Attestation on Compromise Agreement
LSD - DED ED
BOPIR /
10.1.5. Notice of Charge/Formal Charge LSD - DED - ED
SOF
BOPIR /
10.1.6. Order of Preventive Suspension LSD - DED - ED
SOF
10.1.7. Designation of Hearing Officer
LSD - DED ED
and Prosecutor
10.1.8. Decisions on Administrative BOPIR /
LSD - DED - ED
Cases SOF
10.1.9. Resolution on Motion for Reconsideration BOPIR /
LSD - DED - ED
SOF
10.1.10. Recommend the Granting of
Removal/Commutation of LCE - AFMSD - DED
SOF
Administrative Penalties and - ED
Disabilities
10.2. Regions: LT/ALT
10.2.1. Order to Comment/Issue Show- cause
SI RD
Order
10.2.2. Preliminary Investigation Report - SI
10.2.3. Attestation in Compromise Agreement
RD - LSD - DED ED
10.2.4. Resolution of Complaint SI RD

10.2.5. Confirmation of Resolution - ED
146

FORMS AND ANNEXES

BOPIR /
10.2.6. Notice of Charge/Formal Charge LSD - DED - ED
SOF
BOPIR /
10.2.7. Order of Preventive Suspension LSD - DED - ED
SOF
10.2.8. Designation of Hearing Officer
LSD - DED ED
and Prosecutor
10.2.9. Decisions on Administrative BOPIR /
LSD - DED - ED
Cases SOF
10.2.10. Resolution on Motion for BOPIR /
LSD - DED - ED
Reconsideration SOF
10.2.11. Recommend the Granting of
Removal/Commutation of
LCE - RD - DED - ED SOF
Administrative Penalties and
Disabilities
10.3. Implement Decision, Order and Resolution
LSD - DED ED
(DOR)
11. Non-Disciplinary Cases
11.1. Appeal on Invalidated/ Disapproved
AFMSD - LSD - DED ED
Appointment
11.2. Resolution/Comment on Protest on
AFMSD - LSD - DED ED
Appointment
11.3. Petition for Recall of Appointment AFMSD - LSD - DED ED
11.4. Dropping from the Rolls
11.4.1. Return to Work Order
11.4.1.a. NCR: LT /ALT HRMO - LCE - DED ED
11.4.1.b. Regions: LT / ALT HRMO - LCE RD
11.4.2. Written Notice for Unsatisfactory or Poor Performance, Physically
Unfit and Mental Disorder
11.4.2.a. NCR: LT / ALT HRMO - LCE DED
11.4.2.b. Regions: LT / ALT HRMO - LCE RD
11.4.3. Notice/Order of Separation thru Dropping from the Rolls
LCE - AFMSD - LSD -
11.4.3.a. NCR: LT / ALT ED
DED
11.4.3.b. Regions: LT / ALT LCE - RD - LSD - DED ED
The initial action or recommendation of the Provincial Treasurers under Items 3.4.2, 3.5.2,
3.6.2, 4.2, 5.2, and 8.2 shall be with respect only to their authority over LTs and ALTs of
component cities and municipalities within their respective jurisdictions. The final action to
be signed by the BLGF Executive Director or the concerned BLGF Regional Director, as the
case may be, shall bear the notation “By Authority of the Secretary of Finance:”.
147

LTOM, 2ND EDITION
DSO No. 01-2018 amended the applicable provisions in the Local Treasury Operations
Manual (LTOM) issued under Department Orders (DOs) No. 013.2018 and 10-08 dated 19
December 2017 and 26 March 2008, respectively, Department Personnel Order (DPO) No.
515.2017 dated 27 July 2017, and repeals DPO No. 335-03 dated 1 October 2003, DPO No.
321-00 dated 17 November 2000, DPO No. 305-00 dated
27 October 2000, and Department Special Order No. 6-92 dated August 21, 1992.
Legend: ‘ – ’ denotes sequential action / indorsement; and ‘ / ’ denotes alternative action / indorsement;
Authorized AFMSD Administrative, Financial and Management Service Director of BLGF;

Signatory/ BOPIR Board of Personnel Inquiry and Review of DOF;
Office DED Deputy Executive Director (Administration or Operations) of BLGF;
ED Executive Director of BLGF;
HRMO Human Resource Management Officer of LGU;
HRMPSB Human Resource Merit Promotion and Selection Board of BLGF; Local
LCE Chief Executive;
LFPSD Local Fiscal Policy Service Director LGU
LGUOSD Operations Service Director Legal
LSD Service Director of BLGF;
PI Preliminary Investigation Team of BLGF; Provincial
PT Treasurer;
SI Special Investigator of BLGF; Secretary
SOF of Finance; and
USec Undersecretary of Revenue Operations Group of DOF.
148

FORMS AND ANNEXES
ANNEX 6
REPUBLIC OF THE PHILIPPINES
8th Floor EDPC Building, Bangko Sentralng Pilipinas Complex
Roxas Boulevard, Manila 1004• Telefax Nos. 527-2780 / 527-
2790 E-mail: blgf@blgf.gov.ph
BLGF MEMORANDUM CIRCULAR NO. 16- 2015

TO : All Bureau Officials and Personnel; Regional Directors for the
Bureau of Local Government Finance; Provincial, City and
Municipal Treasurers and Others Concerned
SUBJECT : LOCAL PUBLIC FINANCIAL MANAGEMENT TOOLS

FOR THE ELECTRONIC STATEMENT OF RECEIPTS
AND EXPENDITURES
DATE : 19 June 2015
Pursuant to DBM-DILG-DOF.:.NEDA Joint Memorandum Circular No. 2015-1 dated February 24,
2015, providing for the adoption of the local government units Public Financial Management Reform
Roadmap and Implementation Strategy in pursuit of attaining the Philippine Development Plan’s goal
of inclusive growth and poverty reduction and promoting good governance and strong public financial
management (PFM) at the local levels, the Department of Finance particularly the Bureau of Local
Government Finance (BLGF) shall lead in capacitating LGUs in resource mobilization, revenue
generation and related treasury and assessment enhancement tools which include, among others,
revenue and cash flow forecasting tools.
The BLGF developed the Manual for the Local Public Financial Management Tools for the electronic
Statement of Receipts and Expenditures (eSRE). This Manual is the result of the comprehensive
studies under the auspices of the Asian Development Bank Technical Assistance projects since 2007
(ADB TA 4556, ADB TA 4778, ADB TA 7451) and the European Union project “Support for Local
Government Units for More Effective and Accountable Public Financial Management” (LGU PFM
2) for the BLGF and the local treasury offices.
The Manual consists of two books, as follows:
1. A Manual on Determining Local Government Fiscal Capacity and Reconciling Local

Revenue Forecasts
The Manual describes the BLGF Revenue Forecasting Model which utilizes the eSRE data
and is incorporated in the eSRE system. The forecasting model generates annual revenue
forecasts for key LGU own-source revenue items per LGU, which serves as the basis for the
annual regular revenue targeting exercise. These targets are then subjected to a revenue
target reconciliation process, also prescribed in this Manual, which involves the BLGF
Regional Office and the LGU’s treasury office. The agreed revenue targets will be used for
the annual budgeting exercise. The Manual guides the BLGF Central Office and LGUs on
the meaning and use of the revenue forecasts and the target reconciliation process.
149

LTOM, 2ND EDITION
In addition, the Local Treasurers are provided an objective process by which to gauge their
own forecasts and if necessary, rationally justify or defend it vis-a-vis the forecasts generated
by the model by citing qualitative factors specific to the LGU not captured by the model.
Through this process of statistical estimation and rationalized and objective review by both
the BLGF and Local Treasurers, income forecasting and targeting is now more firmly
grounded in the principles of good public financial management.
2. Guidebook for the New Local Government recommends Activities leading to the adoption of
the LGU revenue and cash flow forecasting Tool shall be included in the regular functions of
the BLGF particularly of its Regional Offices.
The New LGFPMS, which improved on the original LGFPMS, a set of twenty
(20) indicators - levels, ratios and percentages - clustered into four main areas: revenue
indicators, expenditure indicators, debt and investment capacity indicators, and financial
management capacity indicators. The Guidebook for the New Local Government Financial
Performance Monitoring System describes in detail the composition of each of these
indicators, how they are computed using the eSRE database, what they mean in terms of
measuring performance in public financial management, how they are currently being
utilized, in part or in whole, and how they can be prospectively utilized.
Activities leading to the adoption of the Manual for the Local Public Financial Management Tools for
the electronic Statement of Receipts and Expenditures (eSRE) shall be included in the regular
functions of the BLGF.
All concerned are hereby enjoined to support the implementation of the above mentioned Local
Public Financial Management Tools.
ATTY. SALVADOR M. DEL CASTILLO

OIC-Executive Director
150

FORMS AND ANNEXES
ANNEX 7
Roxas Boulevard Corner Pablo Ocampo, Sr.
Street Manila 1004
ESTABLISHING THE LOCAL GOVERNMENT UNIT (LGU) FISCAL SUSTAINABILITY

SCORECARD (FSS) IN THE BUREAU OF LOCAL GOVERNMENT FINANCE (BLGF)
1.0 LEGAL BASES. This Department Order (DO) is issued to establish the LGU Fiscal
Sustainability Scorecard as the official LGU fiscal and financial performance evaluation system
of the DOF, through the BLGF, under the following legal bases:
1.1 Executive Order (EO) Nos. 127, 127-A and 292 mandate the Department of Finance (DOF)
to be responsible for the formulation, institutionalization and administration of fiscal
policies, in coordination with other concerned subdivisions, agencies and instrumentalities of
the government, and to supervise the revenue operations of all LGUs;
1.2 EO No. 127 mandates the BLGF to assist in the formulation and implementation of
policies on local revenue administration and fund management, and to exercise
administrative, technical supervision and coordination over the treasury and assessment
operation of local governments;
1.3 Department of Budget and Management - Department of the Interior and Local Government
- DOF - National Economic Development Authority (DBM-DILG-DOF- NEDA) Joint
Memorandum Circular (JMC) No. 2015-1, dated 24 February 2015, sets the LGl,J Public
Financial Management (PFM) Reform Roadmap and Implementation Strategy to attain the
Philippine Development Plan’s goal of inclusive growth and poverty reduction, to promote
good governance and strong PFM at the local levels, and to enjoin the DOF, particularly the
BLGF, to lead in capacitating LGUs in resource mobilization, revenue generation and related
treasury and assessment enhancement tools;
1.4 Sec. 12.3 and Sec. 12.4 of DILG-NEDA-DBM-DOF JMC No. 1 Series of 2016, dated 18
November 2016, requires the DOF, through the BLGF, to provide the following performance
measurements systems: (i) Local Government Financial Performance Management System;
(ii) Local Government Fiscal Sustainability .Scorecard; (iii) Local Treasurers Performance
Standards; and (iv) Creditworthiness Rating Index; and to mainstream them ihto local PFM,
and harmonize and complement them through the LGU Integrated Financial Tool (LIFT);
1.5 DBM-DOF-DILG-JMC No. 2018-1, dated 12 July 2018, enjoins the adoption of the
modified format for the Statement of Receipts and Expenditures (SRE) of LGUs and the
updated guidelines in the preparation and submission thereof;
1.6 DOF DO No. 23-08, dated 29 July 2008, prescribes the New Income Brackets for the Re-
Classification of Provinces, Cities and Municipalities and amending for the purpose DOF
DO No. 20-05, dated 29 July 2005;
151

LTOM, 2ND EDITION
1.7 DOF DO No. 08-2011, dated 11 February 2011, specifies the adoption of the Statement of
Receipts and Expenditures (SRE) as the official reporting system on local government
fiscal and financial operations and providing the rules and regulations therefor;
1.8 DOF DO No. 034-2014, dated 26 May 2014, provides for the amendment of Sections 3, 8
and 9 of the DO No. 08-2011 dated 11 February 2011 by stipulating the submission of timely
and/or accurate SRE reports;
1.9 Sec. 219 of the LGC which states that the provincial, city or municipal assessor shall
undertake a general revision of real property assessment within two (2) years after the
effectivity of the Code and every three (3) years thereafter; and
1.10 Sections 1 and 2 of the DOF DO No. 059.2015, dated 28 May 2015, requires the electronic
submission of the Quarterly Reports on Real Property Assessments (QRRPA) module in the
electronic SRE system.
2.0 RATIONALE AND OBJECTIVES. In order to improve the revenue collection efficiency of all
LGUs, optimize their income generation mandates under the LGC, enjoin good fiscal
.governance at all levels, and promote openness and transparency in local fiscal and financial
management, the LGU Fiscal Sustainability Scorecard (FSS), hereinafter referred to as “LGU
FSS”, is hereby established to be the regular evaluation and assessment tool for LGUs in order
to: (1) regularly assess individual LGU fiscal and financial performance;
(2) provide comprehensive metrics and data analytics on local finance; (3) support credit
financing assessment; (4) Assist in local and national policy formulation; and (5) encourage the
development of appropriate rewards system.
3.0 SCOPE AND DATA SOURCE OF THE LGU FSS. The LGU FSS shall cover all provinces,
cities and municipalities, and shall be regularly developed and updated by the BLGF as part of its
regular programs to build and sustain good fiscal governance by LGUs. The primary data source
shall be the eSRE and QRRPA modules under the LGU Integrated Financial Tools (LIFT)
System being maintained by the BLGF for all LGUs. Additional official references shall be
considered in regard to benchmarks and reporting compliance requirements, such as population
data and growth rate, SMV ordinance, among others.
4.0 POLICY GUIDELINES. The following policy guidelines shall be observed:
4.1 The SRE, as the official financial management reporting prescribed by the DOF to
monitor LGUs’ financial performance, shall be used as the key data source in computing and
analyzing the LGU FSS.
4.2 The local Goyernment Financial Performance Management System (LGFPMS) prescribed
by the BLGF under Memorandum Circular (MC) No. No. 16-2015, dated 19 June 2015,
shall serve as a guide in establishing a fiscal and financial performance framework in
processing the LGU FSS (See Annex A).
4.3 Quantitative parameters shall be designed to gauge the fiscal and financial performance
assessment of LGUs which shall include indicators assessing the revenue, expenditures, debt
and investment, and financial management capacity. Qualitative parameters, on the other
hand, shall be used to measure the behavioral and other non-financial indicators, which shall
include compliance with reportorial duties and responsibilities as required by the DOF and
BLGF; and
4.4 In setting the baselines and benchmarks, the LGU level, i.e. province, city and municipality,
income classification or income bracketing, and similar other clustering mechanisms shall be
considered in the performance evaluation.
152

FORMS AND ANNEXES
5.0 PARAMETERS FOR EVALUATION

5.1 The LGU FSS shall consist of two (2) indicators: (1) the Financial (Quantitative) Indicators,
which shall constitute 90 percent of the total score, and (2) the Non- Financial (Qualitative)
Indicators, which shall constitute the remaining 10 percent.
5.2 There shall be three (3) key result areas (KRAs) for the Financial (Quantitative) Indicators,
namely: (i) Revenue Generation Capacity, (ii) Local Collection Growth and
(iii) Expenditure Management. For Non-Financial (Qualitative) Indicators, the focus shall be
on reportorial compliance on the (i) eSRE, (ii) SMV and (iii) QRRPA.
5.3 To measure the outputs and outcomes of local treasurers under Financial (Quantitative)
Indicators, the following sub-KRAs on local revenue generation and fund management shall
be measured:
5.3.1 Revenue Generation Capacity. The total weight of this indicator shall be distributed to
the six (6) sub-KRAs following the formula below:
a. Regular Income Level is the sum of locally sourced income (excluding the
Special Education Fund [SEF]), current year’s IRA, other shares from national
tax collections, and interest income;
b. Local Revenue Level refers to locally generated revenues, which shall include
real property tax (basic), business tax, other taxes, regulatory fees, service/user
charges, and receipts from economic enterprises;
c. Local Revenue Growth is the actual growth of locally generated revenues. It

shall be the main driver of revenue performance to ensure stable or progressive
collection growth and to be used as evidence of sustainability for each local
revenue source;
d. Dependence on Locally Sourced Income is the percent share of local

revenues (excluding Other Receipts) to the total regular income;
e. Dependence on Internal Revenue Allotment (IRA) is the percent share of

IRA to the total regular income; and
f. Dependence on Other Shares from National Tax Collection is the percent

share of receipts from other shares from national taxes to the total regular
income.
5.3.7 Local Collection Growth. The total weight of this indicator shall be distributed to
the two (2) sub-KRAs, which shall be the main drivers of ownsource revenue
performance, following the formula below:
a. Tax Revenues is the sum of collections from real property tax (excluding SEF),
other tax and tax on business; and
b. Non-Tax Revenue is the sum of collections from regulatory fees, user/ service
charges and income from economic enterprise.
5.3.3 Expenditure Management. This Indicator focuses on the expenditure profile and
utilization of funds, including those covered by mandatory obligations and governed
by statutory limitations under the LGC. The total weight of this Indicator shall be
distributed to four (4) sub-KRAs following the below parameters:
a. Expenditure per Capita is the amount spent by the LGU per constituent for
153

LTOM, 2ND EDITION
various expenditure classes;
b. Use of IRA for Local Development Projects. Sec. 287 of the LGC: each LGU
shalf appropriate in its annual budget no less than twenty percent (20%) of the
annual IRA for development projects;
c. Limitation on Expenditure on Personal Services. Sec. 325a of the LGC: the

total appropriations, whether annual or supplemental, for personal services of the
LGU for one (1) fiscal year shall not exceed forty-five percent (45%) in the case
of first to third class provinces, cities, and municipalities, and fifty-five percent
(55%) in the case of fourth class or lower, of the total annual income from
regular sources realized in the next preceding fiscal year; and
d. Limitation on Debt Service. Sec. 3248 of the LGC: the amount of

appropriations for debt servicing shall not exceed twenty percent (20%) of the
regular income of the LGU concerned.
5.4 For Non-financial (Qualitative) Indicators, the following sub-KRAs shall be measured with
regard to reportorial duties and responsibilities of local treasurers and assessors, as required
by the DOF and the BLGF, and the statutory requirement of the LGC in regard to updating
local revenue bases, as follows:
5.4.1 Submission of Timely and Accurate eSRE Reports in relation to DOF DO No. 8-2011,
as amended;
5.4.2 Regular Updating of SMV and Conduct of General Revision of Property
Assessments, as required by DOF-DILG JMC Nos. 2010-01 and 2010-02; and
5.4.3 Submission of Timely and Accurate QRRPA, as prescribed under DO No.
059.2015 dated 28 May 2015.
5.5 In the case of municipalities, the Non-Financial (Qualitative) Indicator shall only pertain to
Submission of Timely and Accurate eSRE Reports in relation to DOF DO No. 8-2011, as
amended;
5.6 The rating scheme for the above mentioned KRAs shall be based on statistical baselines
and standards according to LGU level and income bracketing or classifications;
5.7 The detailed sub-KRAs for both financial and non-financial indicators, including the
prescribed parameters, benchmarks and rating system, are provided in Annex B hereof; and
5.8 The prescribed templates for the LGU FSS are provided in Annex C (Provinces and Cities)
and Annex D (Municipalities) hereof.
6.0 RATING. There shall be six (6) rating levels based on the consolidated weighted scores
from all performance indicators using the below point rank and final rating scheme:
154

FORMS AND ANNEXES
Score Final Rating Remarks

>= 80 but <= A: Excellent All revenue and expenditure Indicators are very strong; very I
100 high compliance to reportorial requirements and directives of
the DOF and the BLGF.
>= 70 but B: Very Good Most of the revenue and expenditure indicators are met very
< 80 satisfactorily; compliance to reportorial requirements are high
>= 60 but C:Good Most of the revenue and expenditure indicators are above
<70 average performance, minimum level of compliance to
reportorial requirements are mostly met.
>= 50 but D: Average Revenue and expenditure indicators have not significantly
<60 changed and are generally on the average; compliance to
reportorial requirements are mostly met.
>= 40 but E: Needs Almost all of the key revenue and expenditure indicators need
< 50 Improvement to be improved and validated; minimum reportorial
requirements are not generally complied with.
< 40 F: Poor All revenue and expenditure indicators are way below the
benchmarks; key reportorial requirements, mainly the SRE,
are not submitted and complied with.
7.0 COVERAGE OF RATING PERIOD. The fiscal performance evaluation for LGUs shall be
undertaken by the BLGF annually for every full fiscal year or from January 1 to December 31 of
the immediately preceding year.
8.0 RESPONSIBILITIES OF THE BLGF. The BLGF, as the policy and technical arm of the DOF
in supervising the revenue operations of LGUs, shall implement this Order and be responsible for
the following:
8.1 Undertake the LGU FSS and complete the evaluation no later than every September 30 of
the current year;
8.2 Issue the necessary implementing guidelines and procedures through appropriate
office orders or circulars;
8.3 Conduct periodic review of the parameters used in the LGU FSS and make the necessary
adjustments on the sub-KRAs, maximum score, weights, and corresponding rating to ensure
statistical robustness of the models, subject to the approval of the Undersecretary for
Revenue Operations Group;
8.4 Analyze the results of the LGU FSS and publish an annual report therefor;
8.5 Sign, approve, and disseminate the official LGU FSS results;
8.6 Post and publish electronically the individual LGU FSS results;
8.7 Use the individual LGU FSS as basis in evaluating further the treasury and assessment
operations of the LGUs; and
8.8 Use and recommend individual LGU FSS as component of performance-based grant system
and awards of other government agencies.
9.0 REPEALING CLAUSE. All Department orders, memoranda, circulars or other issuances or
parts thereof that are inconsistent herewith are hereby deemed repealed and/or modified
accordingly.
155

LTOM, 2ND EDITION
10.0 EFFECTIVITY. This Department Order shall take effect fifteen (15) days after its publication
in the Official Gazette and the UP Office of the National Administrative Register or in a
newspaper of general circulation in the Philippines.
CARLOS G. DOMINGUEZ
Secretary
156
FORMS AND ANNEXES
Annex A
LOCAL GOVERNMENT FINANCIAL PERFORMANCE MONITORING SYSTEM (LGFPMS

INDICATORS)
The LGFPMS of the BLGF serves provides the LGU fiscal and financial performance evaluation
framework, covering twenty (20) financial and service delivery indicators, grouped as follows:
1. Revenue Indicators (8): These are indicators that reflect revenue generation capacity,
and measure revenue stability, predictability of local revenues, and degree of local
government control over local revenues;
2. Expenditure Indicators (6): These are indicators that reflect expenditure rigidity and
define the degree of flexibility in allocating resources for different purposes;
3. Debt and Investment Capacity Indicators (5): These are indicators that define the
extent to which the LGU service debt obligations and consider the importance of capital
expenditures and capacity to attract long-term financing for investments; and
4. Financial Management Capacity Indicator (1): This indicator compares revenues with
expenditures, and describes the LGU efficiency in financial resources management.
The specific indicators and ratios under the LGFPMS are listed as follows:
Group No. Specific Indicator

1 Revenue Level
2 Revenue Growth
3 Per Capita Locally Sourced Income (LSI) and Special Education Fund
(SEF)
Revenue 4 Per Capita Growth in LSI
Indicators 5 % LSI to Total Revenue
6 % Annual Regular Income (ARI) to Total Revenue
7 Ratio of Total Revenue Office Operations Cost to Total Revenues
Collected (TROOC)
8 Real Property Tax Accomplishment Rate (RPTAR}
9 Per Capita Total Expenditures
10 Personal Services Expenditure Ratio Coda I (PSERC)
Expenditure 11 Total Personal Services Expenditure Ratio (TPSER)
Indicators 12 Total Debt Service Expenditure Ratio (DSER}
13 Social Services Expenditure Ratio (SSER}
14 Economic Services Expenditure Ratio (ESER)
15 Debt Service Ratio (DSR)
Debt and 16 Gross Operating Surplus to Debt Service Ratio (GOSDSR)
Investment 17 Debt to Net Asset Ratio (DNAR)
Capacity 18 Capital Investment Expenditures to Total LGU Revenue Ratio
Indicators (CIETRR)
19 Net Operating Surplus to Total LGU Revenue Ratio (NOSTRR)
157

LTOM, 2ND EDITION
Group No. Specific Indicator

Financial 20 Uncommitted Cash Balance to Total Expenditure Ratio (UCBTER}
Management
Capacity
Indicator
The LGU FSS also looks into the overall fiscal performance of LGUs according to four (4) basic
typologies using the combined financial performance indicators and service delivery indicators to
describe the profile of LGU revenue and expenditure patterns, and to measure improved constituency
welfare via improved service delivery using local finance data, as follows:
Type 1: Good Revenue; Good Expenditure; Type 3: Poor Revenue; Good Expenditure; and
Type 2: Good Revenue; Poor Expenditure; Type 4: Poor Revenue; Poor Expenditure.
158
FORMS AND ANNEXES
Annex B
Detailed Financial and Non-Financial Indicators, Key Result Areas (KRAs),

Parameters, Benchmark and Scoring System for the LGU FSS
A. Financial (Quantitative) Indicators- 90%. The following KRAs and scores shall be
used:
No. KRA Score
1 Revenue Generation Capacity 60
2 Local Collection Growth 10
3 Expenditure Management 20
Total 90
1. Revenue Generation Capacity (60 points). The total weight of this KRA shall be
distributed to six (6) sub-KRAS, namely: (i) Regular Income Level, (ii) Local Revenue Level,
(iii) Local Revenue Growth, (iv} Dependence on Locally Sourced Income, (v) Dependence on
IRA, and (vi) Dependence on Other Shares from National Tax Collection.
1.1. Regular Income Level (5 points) 1.2. Local Revenue Level (10 points)
Parameter Rating Weight Parameter Rating Weight
Mean+50% Very Good 5 Mean+50% Very Good 5
Mean+25% Good 4 Mean+25% Good 4
Mean Fair 3 Mean Fair 3
Needs Needs
Mean-25% 2 Mean-25% 2
Improvement Improvement
Mean-50% Poor 1 Mean-50% Poor 1
Maximum Score 5 Maximum Score 5
1.3. Local Revenue Growth (20 points)

Parameter Rating Weight
>20% 20
>10% 15
Actual Growth >5% 10
>0% 5
<0% 0
Maximum Score 20
1.4. Dependence on Locally Sourced Income (10 points)

P >=20%; C >=50% Very Good 10
P >=15% but <20%; C >=40% but <50% Good 8
P>=10% but <15%; C >=30% but <40% Fair 6
Needs
P >=5% but <10%; C >=20% but 30% 4
Improvement
P >=0% but <5%; C >=0% but <20% Poor 2
Maximum Score 10
159

LTOM, 2ND EDITION
1.5. Dependence on IRA (10 points)

P <75%; C <50% Very Low 10
P >=75% but <80%; C >=50% but <60% Low 8
P >=80% but <85%; C >=60% but <70% Fair 6
P >=85% but <90%; C >=70% but 80% HIgh 4
P >90%; C >80% Very High 2

Maximum Score 10
1.6. Dependence on Other Shares from National Tax Collection (5 points)

<10% Very Low 5
>=10% but <15% Low 4
>=15% but <30% Fair 3
30% High 2
Maximum Score 10
2. Local Collection Growth (10 points). The total weight of this KRA shall be distributed to
the two (2) KRAs, namely: (i) Tax Revenues, and (ii) Non-Tax Revenues.
2.1. Tax Revenues (5 points) 2.2. Non-Tax Revenues (5 points)
>20% 5 >20% 5
>10% 4 >10% 4
Actual Growth >5% 3 Actual Growth >5% 3
>0% 2 >0% 2
<0% 1 <0% 1
Maximum Score 5 Maximum Score 5
3. Expenditure Management (20 points). This KRA focuses on the expenditure profile of LGUs and
measures utilization of funds according to statutory limitations. The total weight of this indicator shall be
distributed to the four (4) sub-KRAs, namely: (i) Expenditure per Capita, (ii) Use of IRA for Local
Development Projects, (iii) Limitation on Expenditure for Personal Services and (iv) Limitation on Debt
Service.
3.1. Expenditure Per Capita (5 points) 3.2. Use of IRA for Local Development
Mean+50% Very High 5 >20% Passed 5
Mean+25% High 4 <20% Failed 0
Mean Fair 3 Maximum Score 5
Mean-25% Low 2
Mean-50% Very Low 1
Maximum Score 5
160

FORMS AND ANNEXES
Annex B
3.3. Limitation on Expenditure on 3.4. Limitation on Debt Service (5

points) Personal Services (5 points)

<= 45% (H); >20% Passed 5
Passed 5
<=55% (L) <20% Failed 0
>= 45% (H); Maximum Score 5
Failed 0
>=55% (L)
Maximum Score 5
B. Non-Financial (Qualitative) Indicators -100/4. The following KRAs and scores shall be used:
No. KRA Score

4 Submission of Timely and Accurate eSRE 4
Regular Updating of SMV and Conduct
5 3
of General Revision of Property Assessments
6 Submission ofTimely QRRPA 3
Total 10
1. Submission of Timely and Accurate eSRE (4 points)

Timely and No Rejection Compliant 4
Timely with Rejection; or No Rejection but not Timely Non-Compliant 2
No Report Submitted No Report 0
Maximum Score 4
2. Regular Updating of SMV and Conduct of General Revision of

Property Assessments (3 points)

SMV is Current and Effective Compliant 3
SMV is Outdated by at Least 3 Years Non-Compliant 0
Maximum Score 3
3. Submission of Timely QRRPA (3 points)

Complete according to form Compliant 3
Incomplete according to form Non-Compliant 1.5
No Report Submitted No Report 0
Maximum Score 3
C. Adjustments for Municipal FSS. In the case of municipalities, the Non-Financial (Qualitative)
Indicator shall only pertain to Submission ofTimely and Accurate eSRE Reports, in relation to DOF
DO No. 8-2011, as amended, which shall have a weight of 10 points.
161

LTOM, 2ND EDITION
Annex B
D. Summary of Indicators. Below is the summary of the two (2) indicators and six (6) KRAs:
For Provinces and Cities

Maximum
Maximum
KRAs Weight Weighted
Score
Score
A. Financial 1. Revenue Generation Capacity 60
(Quantitative) 2. Local Collection Growth 10 90% 90 points
Indicators
3. Expenditure Management 20
B. Non- 4. SRE Compliance 40
Financial 5. SMV Updating 30 10% 10 points
(Qualitative)
6. QRRPA Compliance 30
Indicators
Total 100% 100 points
For Municipalities
Maximum
Maximum
KRAs Weight Weighted
Score
Score
A. Financial 1. Revenue Generation Capacity 60
(Quantitative) 2. Local Collection Growth 10 90% 90 points
Indicators
3. Expenditure Management 20
B. Non-
Financial
4. SRE Compliance 10 10% 10 points
(Qualitative)
Indicators
Total 100% 100 points
162

FORMS AND ANNEXES
Annex C
DEPARTMENT OF FINANCE I BUREAU OF LOCAL GOVERNMENT FINANCE
LGU Fiscal Sustainability Scorecard for Provinces and Cities1

NAME OF -PROVINCE/CITY/MUNICIPALITY INCOME CLASSIFICATION
Key Result Max Year 1 Year 2 Year 3

Indicator Score
Area Rating Score Rating Score Rating Score
2
1.1 Regular income level 5
1.2 Local revenue level3 10
1. Revenue 1.3 Local revenue growth 20
Generation 1.4 Dependence on locally
10
Capacity sourced income4
1.5 Dependence on IRA 10
(60 points)
1.6 Dependence on Other
Shares from National Tax 5
Collection
2.1 Tax Revenues
2.1.1 Real property tax
(Basic) 5
2. Local 2.1.2 Tax on Business
Collection 2.1.3 Other Taxes
Growth 2.2 Non-Tax Revenues
(10 points) 2.2.1 Regulatory Fees
2.2.2 User/Service 5
Charges
2.2.3 Econ. Enterprise
3.1 Total Expenditure Per
5
Capita5
3.2 Use of IRA for Local
3. Expenditure 5
Development Projects6
Management
3.3 Limitation on Expenditure
for Personal Services7 5
(20 points)
3.4 Limitation on Debt Service8

5
SUB-TOTAL: QUANTITATIVE INDICATORS

90
(90%)
4. Submission of Timely and Accurate Statement
of Receipts and Expenditures, per DO 8-2011, 4
as amended
5. Regular Updating of Schedule of Market Values
and Conduct of General Revision of Property
Assessment per Sec. 219 of the Local 3
Government Code and DOF- DILG Joint
Memorandum Circular No. 2010-01
163

LTOM, 2ND EDITION

Indicator Score
5. Submission of Timely and Accurate Quarterly
Report on Real Property Assessment 3
(QRRPA)
SUB-TOTAL: QUALITATIVE INDICATORS
10
(90%)
OVERALL SCORE9 100
OVERALL RATING
DATA SOURCES: LGU Treasurer’s Electronic Statement of Receipts and Expenditures (BLGF run date
of _, LGU Assessor’s Quarterly Reports on Real Property Assessment for the
applicable years, and approved LGU Schedule of Market Values
• Rating scheme for KRAs 1.1, 1.2, 1.4, 1.5 and 1.6 was based on performance according to income classification
"in relation to average performance of LG Us within the same income
classification. NI= Needs Improvement
'Total regular Income is the sum of locally sourced income (excluding SEF), current year's IRA+ other shares from national tax
collection. Other Income/receipts were not considered
due to reporting errors.
• Total revenues collected from real property tax (basic), business tax, other taxes, regulatory fees, user charges, and income
from economic enterprise.
•%share of local revenues (excluding Other Receipts) to total regular income
• Based on Census, with % projected annual growth for FY .
• At least 20% of IRA should be utilized for local development projects (LGC Sec. 287)
, Not to exceed 45% of the annual regular income realized in the next preceding fiscal year for 1st - 3rd Income class
LGUs or 55% for 4th or lower Income dass LGUs (LGC Sec. 325a)
• Expenditures for debt servicing not to exceed 20% of the regular Income for the fiscal year (LGC Sec. 324a)
• Based on the weighted score for all quantitative (KRAs 1, 2 & 3) and qualitative (KRAs 4, 5 & 6) Indicators: 100%
= 90% Quantitative KRAs + 10% Qualitative KRAs
• Re-computed based on the latest FY report per BLGF run date of .
164

FORMS AND ANNEXES
Annex C
Annex A· Detailed Report

LGU Name:
Income Class: 2010 Population
FY Covered: 2015 Population
Indicator/Item Year 1 +/-YoY Year 2 +/- YoY Year 3 +/-YoY

1. Regular Income
Locally Sourced Income
% Share to Regular Income
Internal Revenue Allotment (Current)
Other Shares from Nat’I Tax Collection
2. Local Revenue
Tax Revenues
Real property tax (Basic)
Tax on Business
Other Taxes
Non-tax Revenues
Regulatory Fees
User/Service Charges
Income from Econ. Enterprise
3. Internal Revenue Allotment Current
4. Other Shares from Nat’I Tax Collection

Share from Economic Zone
Share from EVAT
Share from National Wealth
Share from PAGCOR/PCSO/Lotto
Share from Tobacco Excise Tax
5. Total Expenditures (with SEF)

General Public Services
per Capita
Economic Services
per Capita
Social Services
per Capita
Education
per Capita
165

LTOM, 2ND EDITION

Health
per Capita
Labor
per Capita
Housing
per Capita
Debt Service
6. Total Expenditures per Capita

Population/Projected Population
7. Utilization of IRA for Local Development

Projects
20% Expenditure
8. Personal Services (PS)

PS-to-Total Expenditures Ratio
9. Total Debt Service

Debt-to-Regular Income Ratio
Notes on Rating System Used in the Preliminary Scorecard:

Regular Income and Locally Sourced Income were assessed according
to Income Class, with the following scale:
Very Good= 50% higher than the average value

Good = 25% higher thin the average value Fair= (Dependence on locally sourced income was assessed using
Average the same scale but on per LGU type basis)
Needs Improvement= 25% lower than the average value Poor=
50% lower than the average value Total Expenditure per Capita was assessed according to
IRA Dependence was assessed according to LGU Type LGU Type
Very Low= Less than 50% Very High= 50% higher than average value
Low= Greater than 50% but less then 60% High= 25% higher than average value Fair=
Fair= Average dependence for municipalities: 60%-70% High= Average
Greater than 70% but less than 80%
Very High= Greater than 80% Low= 25% lower than average value
Very Low= 50% lower than average value
Use of IRA for Local Dev’t Projects: PASSED = Ratio is greater than or equal to 20% else, FAILED
Limitation on PS Expenditure : PASSED: <=45% for 1st - 3rd Class LGUs, <=55% for 4th to lower income class LGUs;
else FAILED
Debt Service Ratio: PASSED: Expenditures for debt servicing is less than or equal to 20% of regular Income; else, FAILED
166

FORMS AND ANNEXES
Annex C
DEPARTMENT OF FINANCE I BUREAU OF LOCAL GOVERNMENT FINANCE
LGU Fiscal Sustainability Scorecard for Provinces and Cities1

NAME OF -PROVINCE/CITY/MUNICIPALITY INCOME CLASSIFICATION

Indicator Score
2
1.1 Regular income level 5
1.2 Local revenue level3 10
1. Revenue 1.3 Local revenue growth 20
Generation 1.4 Dependence on locally
10
Capacity sourced income4
1.5 Dependence on IRA 10
(60 points)
1.6 Dependence on Other
Shares from National Tax 5
Collection
2.1 Tax Revenues
2.1.1 Real property tax
(Basic) 5
2. Local 2.1.2 Tax on Business
Collection 2.1.3 Other Taxes
Growth 2.2 Non-Tax Revenues
(10 points) 2.2.1 Regulatory Fees
2.2.2 User/Service 5
Charges
2.2.3 Econ. Enterprise
3.1 Total Expenditure Per
5
Capita5
3. Expenditure 3.2 Use of IRA for Local
5
Management Development Projects6
3.3 Limitation on Expenditure
5
(20 points) for Personal Services7
3.4 Limitation on Debt Service8
5
SUB-TOTAL: QUANTITATIVE INDICATORS

90
(90%)
167

LTOM, 2ND EDITION

Indicator Score
4. Submission of Timely and Accurate Statement
of Receipts and Expenditures, per DO 8-2011, 10
as amended
SUB-TOTAL: QUALITATIVE INDICATORS
10
(90%)
OVERALL SCORE9 100
OVERALL RATING
DATA SOURCE: LGU Treasurer’s Electronic Statement of Receipts and Expenditures (BLGF run date of
)
• Rating scheme for KRAs 1.1, 1.2, 1.4, 1.5 and 1.6 was based on performance according to income classification
"in relation to average performance of LG Us within the same income
classification. NI= Needs Improvement
'Total regular Income is the sum of locally sourced income (excluding SEF), current year's IRA+ other shares from national tax
collection. Other Income/receipts were not considered
due to reporting errors.
• Total revenues collected from real property tax (basic), business tax, other taxes, regulatory fees, user charges, and income
from economic enterprise.
•%share of local revenues (excluding Other Receipts) to total regular income
• Based on Census, with % projected annual growth for FY .
• At least 20% of IRA should be utilized for local development projects (LGC Sec. 287)
, Not to exceed 45% of the annual regular income realized in the next preceding fiscal year for 1st - 3rd Income class
LGUs or 55% for 4th or lower Income dass LGUs (LGC Sec. 325a)
• Expenditures for debt servicing not to exceed 20% of the regular Income for the fiscal year (LGC Sec. 324a)
• Based on the weighted score for all quantitative (KRAs 1, 2 & 3) and qualitative (KRAs 4, 5 & 6) Indicators: 100%
= 90% Quantitative KRAs + 10% Qualitative KRAs
• Re-computed based on the latest FY report per BLGF run date of .
168

FORMS AND ANNEXES
Annex D
Annex A· Detailed Report

LGU Name:
Income Class: 2010 Population
FY Covered: 2015 Population

1. Regular Income
Locally Sourced Income
Internal Revenue Allotment (Current)
Other Shares from Nat’I Tax Collection
2. Local Revenue
Tax Revenues
Real property tax (Basic)
Tax on Business
Other Taxes
Non-tax Revenues
Regulatory Fees
User/Service Charges
Income from Econ. Enterprise
3. Internal Revenue Allotment Current
4. Other Shares from Nat’I Tax Collection

Share from Economic Zone
Share from EVAT
Share from National Wealth
Share from PAGCOR/PCSO/Lotto
Share from Tobacco Excise Tax
5. Total Expenditures (with SEF)

General Public Services
per Capita
Economic Services
per Capita
Social Services
per Capita
Education
per Capita
169

LTOM, 2ND EDITION

Health
per Capita
Labor
per Capita
Housing
per Capita
Debt Service
1. Total Expenditures per Capita

Population/Projected Population
2. Utilization of IRA for Local Development

Projects
20% Expenditure
3. Personal Services (PS)

PS-to-Total Expenditures Ratio
4. Total Debt Service

Debt-to-Regular Income Ratio
Notes on Rating System Used in the Preliminary Scorecard:

Regular Income and Locally Sourced Income were assessed according
to Income Class, with the following scale:
Very Good= 50% higher than the average value

Good = 25% higher thin the average value Fair= (Dependence on locally sourced income was assessed using
Average the same scale but on per LGU type basis)
Needs Improvement= 25% lower than the average value Poor=
50% lower than the average value Total Expenditure per Capita was assessed according to
IRA Dependence was assessed according to LGU Type LGU Type
Very Low= Less than 50% Very High= 50% higher than average value
Low= Greater than 50% but less then 60% High= 25% higher than average value Fair=
Fair= Average dependence for municipalities: 60%-70% High= Average
Greater than 70% but less than 80%
Very High= Greater than 80% Low= 25% lower than average value
Very Low= 50% lower than average value
Use of IRA for Local Dev’t Projects: PASSED = Ratio is greater than or equal to 20% else, FAILED
Limitation on PS Expenditure : PASSED: <=45% for 1st - 3rd Class LGUs, <=55% for 4th to lower income class LGUs;
else FAILED
Debt Service Ratio: PASSED: Expenditures for debt servicing is less than or equal to 20% of regular Income; else, FAILED
170

FORMS AND ANNEXES
ANNEX 8
Manila 1004
SUBJECT: PERFORMANCE STANDARDS FOR LOCAL TREASURERS

AND ASSISTANT TREASURERS
WHEREAS, the Department aims to instill a results-oriented performance culture with a

high level of professionalism and excellence among local treasurers and assistant treasurers so that
they discharge their duties and responsibilities competently and efficiently, and the performance of
their shared mandate and responsibility contribute at all times to good local fiscal governance;
WHEREAS, consistent with the policies and guidelines of the Civil Service Commission, a
regular, output-oriented, and performance-based appraisal system for local treasurers and assistant
treasurers is necessary towards effective supervision of local treasury operations in the local
governments by the Department;
WHEREAS, the Secretary of Finance has appointing and disciplining authority over all
provincial, city and municipal treasurers and assistant treasurers, pursuant to Sec. 470 and Sec. 471 of
Republic Act No. 7160 (Local Government Code):
NOW, THEREFORE, in consideration of the foregoing premises, the Performance

Standards and Evaluation System for Local Treasurers, hereinafter referred to as “Performance
Standards”, and other relevant guidelines are hereby established for adoption and implementation by
the Bureau of Local Government Finance (BLGF):
Section 1. Purpose. The Performance Standards shall set the criteria and system on the
regular performance appraisal of local treasurers and assistant treasurers. It is the goal of the
Department to evaluate the level of competency, proficiency, professionalism and productivity of all
local treasurers so that their knowledge, skill sets, and strategies are attuned to the strategic directions
and priorities, particularly on local government fiscal and financial management, of the Department.
Section 2. Policy Guidelines. The Performance Standards shall be an integral part of the
human resource management and development strategy of the Department to build and sustain a
results-oriented performance and professional culture among local treasurers and assistant treasurers.
As such, it shall be used as basis for purposes of appointment and other personnel action, such as
promotion, renewal of designation, and extension of service, accountability assessment, awards and
recognitions, capacity building interventions, among others, pursuant to existing rules and regulations.
Toward this end, there shall be a regular monitoring and performance evaluation of all local treasurers
and assistant treasurers, to be based on objectively verifiable indicators and established guidelines,
supported by appropriate management and information systems, and to be undertaken by the BLGF in
a transparent, impartial, open, and synchronized process. Local treasurers and assistant treasurers who
fail to meet the minimum standards shall be given assistance to improve. If the performance of a local
treasurer or assistant treasurer remains unacceptable, despite the opportunity given, the
171

LTOM, 2ND EDITION
BLGF shall institute the appropriate administrative action. In no case shall these performance
standards and guidelines engender solicitation of favors or impose undue patronage on local
treasurers, assistant treasurers or any officials and employees of the Department.
Section 3. Scope. The policy to undertake a regular performance evaluation through

Performance Standards shall apply to all provincial, city, and municipal treasurers and assistant
treasurers, whether permanent or designate.
Section 4. Parameters for Evaluation. The Performance Standards shall consist of two
(2) key results areas, namely, the Operational Performance Goals (OPGs), which constitute 70
percent of the total score, and the Competency Performance Goals (CPGs), which constitute the
remaining 30 percent.
4.1. Operational Performance Goals (OPGs) - 70%. The following OPG indicators
shall measure the outputs and outcomes of local treasurers in local revenue generation and fund
management:
No. Indicator Points Weighted Score

1 Local Collection Efficiency 35 24.5
2 Stable and reliable local revenue orowth 20 14.0
3 Optimum fund manaqement 15 10.5
4 Institution of administrative and judicial remedies
10 7.0
5 Reportorial compliance with DOF requirements

10 7.0
6 Compliance with COA rules and requlations 5 3.5

7 Cost effective local revenue collection 5 3.5
Total 100 70.0
4.2. Competency Performance Goals (CPGs) - 30%. The following CPG indicators
shall measure the behavioral and other non-technical dimensions in the work of local treasurers:
No. Indicator Points Weighted Score

1 Code of conduct and ethical standards 40 12.0
2 Capacity buildinq and professional development
30 9.0
3 Professional recoqnitlons and achievements 15 4.5

4 Office management tools and support
10 3.0
system/s
5 Use of non-traditional collection strateqies 5 1.5
Total 100 30.0
Section 5. Indicators for OPGs. To operationalize the OPG indicators, the following
specific benchmarks, formula and other parameters shall be adopted:
5.1. Local Collection Efficiency (35 points). This indicator measures the collection of
current and delinquent local revenues based on actual collections vis-a-vis the respective targets in all
local revenue areas. The total weight of this indicator shall be distributed to the four major local
revenue sources, namely: real property tax, business tax, regulatory fees and service/user charges
(hereinafter referred to as “fees and charges”), and business income
172

FORMS AND ANNEXES
from economic enterprises (hereinafter referred to as “economic enterprise”).
The weight assignment is further distributed according to the revenue taxing powers of LGUs, and the
historical performance of the four revenue sources for each level of LGU:
5.1.1. If the LGU is operating a local economic enterprise, the standard and weight
distribution to be adopted shall be:
Benchmark: 85% Collection of target in each local revenue source

Benchmark scoring by revenue source: >100% = 1; >95% but <100% = 0.75; >90% but
<95% = 0.50; >85% but <90% = 0.25; <85% = 0
Formula: Collection Efficiency = (Collection/Tarqet) x 100%
Computation: Formula to be applied per local revenue source; benchmark score to be summed up
to qet total score
Data Source: Statement of Receipts and Expenditures; Quarterly Report on Real Property
Assessments (for real property tax only)
Weight Distribution (Points)
Revenue Source Province City Municipality
Real Property Tax 14 12 11
Business and Other Taxes 6 17 10
Fees and Charges 10 3 7
Economic Enterprise 5 3 7
Total 35 35 35
5.1.2. If the LGU is not operating a local economic enterprise, the standard and weight
Benchmark: 85% Collection of target in each local revenue source

<95% = 0.50; >85% but <90% = 0.25; <85% = 0
Formula: Collection Efficiency = (Collection/Tarqet) x 100%
Computation: Formula to be applied per local revenue source and summed up to get total score
Data Source: Statement of Receipts and Expenditures; Quarterly Report on Real Property
Assessments (for real property tax only)
Total 35 35 35
5.1.3. Target and Collection Efficiency Parameters. In determining the targets and in
computing the collection efficiency of local revenue sources, the following guidelines shall be
adopted:
5.1.3.1. Real Property Tax (RPT). For purposes of OPG 1, real property tax collection
173

LTOM, 2ND EDITION
shall pertain to receipts from basic real property tax, and Special Education Fund, including
collections from current and prior year penalties and properties acquired by the local
government for want of bidder. In determining the RPT target, the current year collectibles
and the cumulative collectible delinquencies for the last five (5) years only, based on the
Quarterly Report on Real Property Assessments, as reported by the local assessors shall be
computed. The parameters to be adopted in determining the target, collections, and
collection efficiency shall be:
Real Property Tax
Item Formula
Collection RPT Current Year Collection+ Prior Year (Basic)+ Prior Year
Penalty (Basic)+ Prior Year (SEF) + Prior Year Penalty (SEF)
Target (Total Current Collectibles x 80%) + (Cumulative
Five-Year Delinquencies x 35%)
Efficiency Collection/ Target
5.1.3.2. Business and Other Taxes, Fees and Charges, and Income from Economic
Enterprise. The targets/collectibles for business and other taxes, regulatory fees, and
service/user charges, and income from economic enterprise shall be determined by the
BLGF using an annual regional Incremental Factor, to be based on the prior year’s gross
regional domestic product (GROP), as determined by the National Economic and
Development Authority, and prior year’s inflation rate as may be applicable to Metro Manila
or other areas outside Metro Manila. The parameters to be adopted in determining the target,
collections, and collection efficiency shall be:
Business and Other Taxes
Item Formula
Collection Tax on Business (Current Year) + Other Taxes (Current Year)
Target (Tax on Business [Current Year] +
Other taxes (Current Year) x Incremental Factor
Regulatory Fees and and Service/User Charges
Item Formula
Collection Regulatory Fees (Current Year)+ Service/User Charges (Current Year)
Target (Regulatory Fees [Prior Year] + Service/User Charges [Prior

Yearn x Incremental Factor
Economic Enterprise
Item Formula
Collection Income from Economic Enterprise (Current Year)
Target Income from Economic Enterprise (Prior Year) x Incremental
Factor
174

FORMS AND ANNEXES
5.1.3.3. Issuance of Targets. The BLGF shall issue local revenue targets to all local
treasurers not later than May 31 every year.
5.1.3.4. Concurrence of Local Treasurers with the BLGF Targets. Upon issuance of
the local revenue targets, local treasurers may request for adjustment by reason of force
majeure, civil disturbance, natural calamity or any cause or circumstance, which legally
prevents the treasurer from enforcing collection. If no adjustment is requested and approved
by the BLGF within thirty (30) days upon issuance of the targets. the original targets, as
issued, shall be adopted as basis for computing OPG 1.
5.2. Stable and reliable level of revenue growth (20 points). This indicator measures
the efforts of local treasurers in ensuring stable and progressive growth in local revenue collections.
Growth is measured based on the nominal increase in the immediately preceding fiscal year’s
collections in all local revenue areas. Similar to OPG 1, the total weight of this indicator shall be
distributed to the four major local revenue sources, namely: real property tax, business tax, fees and
charges, and economic enterprise. The weight assignment is further distributed according to the
revenue taxing powers of LGUs, and the historical performance of the four revenue sources for each
level of LGU.
5.2.1. If the LGU is operating a local economic enterprise, the standard and weight
Benchmark: > 0% growth in each local revenue source

<10% = 0.50; >0% but <5% = 0.25; SO%= 0
Formula: Revenue Growth = [(Current Local Revenues/ Previous Year’s Local Revenues)
- 11 x 100%
Computation: Formula to be applied per local revenue source and to be multiplied with the
corresponding weight; benchmark score to be summed up to get total score
Data Source: Statement of Receipts and Expenditures
Total 20 20 20
5.2.2. If the LGU is not operating a local economic enterprise, the standard to be
adopted shall be:

<10% = 0.50; >0% but <5% = 0.25; 50%= 0
Formula: Revenue Growth = [(Current Local Revenues/ Previous Year’s Local Revenues)
- 11 x 100%
Computation: Formula to be applied per local revenue source and to be multiplied with the
corresponding weight; benchmark score to be summed up to get total score
175

LTOM, 2ND EDITION

Total 20 20 20
5.3. Optimum Fund Management - General Fund and Special Education Fund
(15 points). This indicator measures the management of the cash flow for payment of obligations
and in optimizing fund utilization and managing expenditures to ensure that released allotments are
adequately covered by available cash and/or future collections. This indicator, accounts for the net
ending cash balance, together with the total receipts from all fund sources, less the total expenditures
for the current fiscal year. The standard to be adopted shall be:
Benchmark: > Current Year Expenditures (Net Surplus)

Benchmark scoring: Net Surplus= 1; Net Deficit= 0
Formula: Net Surplus/Net Deficit= (Cash Balance Beginning +[Total Receipts Excluding Loans,
Grants & Aids) - (Total Expenditures Excluding Debt Service & Disbursement from Grants & Aids)
Computation: Multiply weight with the benchmark score
Data Source: Statement of Rec eipts and Expenditures
Indicator Score Total
Surplus 15 X 1 15
Deficit 15 X 0 0
5.4. Institution of Administrative and Judicial Remedies (10 points). This indicator
measures the treasurer’s practical use of the available civil remedies for the collection of any
delinquent local tax, fee, charge, or other revenues within the LGU jurisdiction. Under the Local
Government Code, local treasurers are mandated to institute administrative (distraint or levy) and/or
judicial actions in aid of tax collection enforcement. Five (5) points shall be given each for the
institution of remedies for the collection of delinquent real property tax and for other local taxes.
5.4.1. For the collection of delinquencies in real property tax, the standard to be adopted
shall be:
Benchmark: Issuance of warrant of levy OR Endorsement to the LGU legal officer of the
institution of civil action
Benchmark scoring:
Warrant/s of levy issued = 1 Endorsement to legal officer = 1
No warrant of levy issued = 0 OR No endorsement to leqal officer = 0
Formula: Score= Benchmark score x 5 points
Computation: Rating is not dependent on volume of warrants issued or endorsement/s
made to the LGU leqal officer.
Data Source: Certified copy of warrant/s of levy sent to taxpayer; OR Certified copy of
endorsement of treasurer to the LGU legal officer
176

FORMS AND ANNEXES
5.4.2. In case the local treasurer has collected already at least 90% of the total current year
collectibles, the full 5 points shall be credited with or without availing of administrative or judicial
remedies for RPT collection.
5.4.3. For the collection of delinquencies in other local taxes, the standard to be adopted
shall be:
Benchmark: Issuance of warrant of distraint AND Endorsement to the LGU legal officer
of the institution of civil action
Benchmark scoring: A
Warrant/s of distraint issued = 0.5 N Endorsement to legal officer = 0.5 No
warrant of distraint issued = 0 D No endorsement to legal officer= 0
Formula: Score = Benchmark score x 5 points

Computation: Sum up rating per action; Rating is not dependent on volume of warrants
issued or endorsement/s made to the LGU legal officer.
Data Source: Certified copy of warrant/s of distraint sent to taxpayer AND Certified copy of
endorsement of treasurer to the LGU legal officer
5.5. Reportorial compliance with DOF requirements (10 points). This indicator
measures compliance with reportorial duties and responsibilities, as required by the Department,
namely, the SRE (DOF DOs 08-2011 and 034- 2014), the Certified List of Real Property Tax (RPT)
Delinquencies (DOF DO 10-08), the Statement of Indebtedness (DOF LFC 1-2012), and the LGU-
BIR Information Sharing (EO 646 and DOF DO 9-08). It shall be the shared duty of the local
treasurer and assistant treasurer to ensure compliance with such reportorial accountabilities. The
standard to be adopted shall be:

Benchmark scoring:
Report Weight (Points) Benchmark
1. SRE 5
2. Certified List of RPT Delinquencies 3 Complete= 1
3. Statement of Indebtedness 1 Incomplete = 0
4. LGU-BIR Information Sharinq 1
Formula: Score = Benchmark score x Weight per Report
Remarks: Correspondents weighted scores to be summed up. Data
Source/s: BLGF Central and/or Regional Offices
5.6. Compliance with COA Rules and Regulations (5 points). This indicator
accounts for the involvement in any irregular or illegal activities of the local treasurer or assistant
treasurer that could adversely affect the financial operations of LGUs and that may lead to the filing
of administrative and criminal complaint/s. This shall be based on any adverse findings of the
Commission on Audit (COA) for which the local treasurer or assistant treasurer is primarily
responsible. The standard to be adopted shall be:
177

LTOM, 2ND EDITION
Benchmark: No adverse findinq/s from COA

Benchmark scoring: No adverse findings = 1; With adverse findings = 0
Formula: Score = Benchmark score x Weight
Computation: To be based on the Annual Audit Report (AAR) of COA. Such basis shall be the
AAR immediately preceding the rating period/year or the latest available AAR of the LGU.
Data Source: BLGF copy of the COA AAR

5.7. Cost Effective Local Revenue Collection (5 points). This indicator measures
the ratio of total cost of collection and the actual local revenues collected to determine the cost
effectiveness of the local treasurer and assistant treasurer in local revenue collection. The ratio
determines whether the LGU is subsidizing the cost of collecting the tax, or the tax is contributing to
the revenue coffers of the LGU. The standard to be adopted shall be:

Benchmark scoring:
Ratio Score Weight Total Score
<10% 1 5
10% but < 15% 0.75 3.75
5
15% but < 20% 0.5 2.5
>20 0 0
Formula: Cost to Collect Ratio = (Total Expenditures of Treasurer’s Office/Total Local
Revenues) x 100
Totai Actual Expenditures = Personal Services (PS) of the Treasurer’s Office+ Maintenance and
Other Operating Expenses (MOOE) of the Treasurer’s Office
Total Local Revenues = Tax Revenues+ (Non-Tax Revenues - Other Receipts)

Computation: Multiply weight with the benchmark score according to the corresponding cost to
collect ratio.
5.7.1. Adjustment in Expenditures Data. The local treasurer or assistant treasurer concerned
may request for adjustment in the expenditures data used in the evaluation. Subject to validation and
approval by the BLGF, MOOE expenditures may be adjusted to exclude any or all of (i) Interest
Expenses; (ii) Subsidies to NGAs, LGUs, or GOCCs; (iii) Insurance Expenses; (iv) Fidelity Bond
Premiums; (v) Election-related expenditures; and (vi) Other expenditures appropriated in the
Treasurer’s Office, but were actually used for other LGU office/s.
Section 6. Indicators for CPGs. To operationalize the indicators for CPGs,

the following specific benchmarks, formula and other parameters shall be adopted:
6.1. Code of conduct and ethical standards (40 points). This indicator determines
the compliance of local treasurers and assistant treasurers with the code of conduct and ethical
standards of public officials and employees pursuant to Republic Act No. 6713. Full points shall be
given if no disciplinary actions/penalties, namely, (i) reprimand, (ii) fine, or (iii) suspension (final and
executory), have been meted by judicial and quasi-judicial bodies for offenses or violations of
existing laws, rules and regulations. The standard to be used shall be:
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FORMS AND ANNEXES
Benchmark: No adverse findinq/s from COA

Benchmark scoring:
10 points 10 points 20 points
No Reprimand = 1 No Fine = 1 No Suspension = 1
Reprimanded = 0 Fined = 0 Suspended = 0
Remarks: Data to be based on the immediately preceding year’s records.
Computation: Multiply weight (by sanction) with the benchmark score.
Data Source: BLGF Central/Regional Offices
6.2. Capacity building and professional development (30 points). This indicator
measures the capacity building and development activities availed of or engaged in by local treasurers
and assistant treasurers to improve their technical proficiency, competence, and skills from duly
recognized and bona fide organizations. Such trainings shall be categorized into
(i) Core Trainings, or those trainings, seminars, and workshops that are directly related to fiscal and
financial management, and (ii) Non-Core Trainings or those conferences, conventions, workshops,
and similar activities that enhance leadership, personality, management, and other skills required to
improve competency. The standard to be used shall be:
Benchmark: Core Trainings > 32 hours; Non- Core Trainings > 16 hours
Benchmark scoring:
Core Trainings - 20 points Non-Core Trainings - 10 Points
No. of Hours Weiqht Score No. of Hours Weiqht Score
>80 1 20 > 40 1 10
> 64 but< 80 0.8 16 > 32 but< 40 0.8 8
> 48 but< 64 0.6 12 > 24 but< 32 0.6 6
> 32 but< 48 0.5 10 > 16 but< 24 0.5 5
< 32 0 0 <16 0 0
Remarks: Data to be based on the immediately preceding year’s certified copy of training
certificates to be presented by local treasurers/assistant treasurers.
Computation: Multiply weight (according to the number total training hours by area) with the
benchmark score.
Data Source: BLGF Central/Regional Offices
6.3. Professional recognitions and achievements (15 points). This indicator
accounts for the annual recognitions, citations and other similar awards conferred to local treasurers
and assistant treasurers in at least two (2) areas, namely, (i) LGU awards/ recognitions with direct
contribution of the treasurer/assistant treasurers, (ii) those conferred by government and legitimate
private organizations relating to local treasury performance, (iii) resource speakership or expert
engagement outside the local treasury department; (iv) civic commendations, achievements and other
honorific conferment; or (v) individual contribution to research, published works, engagement in
special project of high significance or similar endeavors involving expertise in local treasury
operations. The standard to be used shall be:
179

LTOM, 2ND EDITION
Benchmark: Award/recognition in at least one (1) area

Benchmark scoring:
Indicator Weight Score
Awards in two (2) award areas 1 15
Award in one (1) award area 0.5 7.5
No award in any area 0 0
Remarks: Evaluation to be based on the immediately preceding year’s certified copy of
awards/recognitions/citations submitted to BLGF; Number of awards per area not a factor to get
higher score.
Remarks: Multiply applicable weight (bv indicator) with the benchmark score.
Data Source/s: BLGF Central and/or Regional Offices
6.4. Office management tools and support system/s (10 points). This indicator
mea sures the adoption of quality management tools and other innovative support system/s that
improve workplace organization, foster efficient records management, improve service delivery to
clientele, enable better customer service experience to taxpayers, maintain orderliness in office affairs
and transactions, among others. Such tools and support systems may include the (i) 5S office
organization method, (ii) manual or computerized records management system, (iii) integrated
information systems, (iv) quality management certification systems, etc. The standard to be used shall
be:
Benchmark: One (1) working management tool or support system, such as, but not limited to,
those enumerated above.
Benchmark scoring:
Two (2) or more workinq systems 1 10
One ( 1 ) workinq system 0.75 7.5
No working support system 0 0
Remarks: Evaluation to be based on actual supervisory/ocular visit by the BLGF, in the case of city
and provincial treasurers’ offices (including the lone municipality in Metro Manila), and by
certification of the Provincial Treasurer, in the case of municipal treasurers’ offices.
Remarks: Multiply applicable weight (bv indicator) with the benchmark score.
6.5. Use of non-traditional collection strategies (5 points). This indicator gives
credit to innovative and non-traditional collection enforcement strategies of local treasurers and
assistant treasurers. Such strategies may include, but not limited to, (i) tax clearance as
requirement for renewal of business permits, (ii) one-stop-shop systems, (iii) local tax caravans, (iv)
use of social and tri-media for tax information campaign, (v) use of electronic banking to facilitate
payment, (vi) awards/tokens for top and prompt taxpayers, (vii) integration of local tax concepts in
the education curriculum, (viii) linkage with other local projects, etc. These strategies must be legal
and included in the plans and programs of the local treasurer.
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FORMS AND ANNEXES
Benchmark: One (1) non-traditional collection enforcement strategy, such as, but not limited to
those enumerated above.
Benchmark scoring:
Three (3) or more workinq strateqies 1 5
Two (2) more working strategies 0.75 3.75
One (1) more workinq strategy 0.5 2.5
No innovative collection strateqie? 0 0
Remarks: Evaluation to be based on (i) submitted proof/documentation or any evidence of
implementation of such strategies by the local treasurer/assistant treasurer, (ii) through actual
supervisory/ocular visit by the BLGF, in the case of city and provincial treasurers’ offices
(including the municipality in Metro Manila), and (iii) by certification of the Provincial Treasurer,
in the case of municipal treasurers’ offices.
Remarks: Multiply applicable weight (per indicator) with the benchmark score.
Section 7. Rating Scheme and Form. There shall be five rating levels based on the
consolidated scores from all performance indicators using the below point rank and adjectival rating
scheme. The results of the Performance Standards shall be issued in the form as prescribed in Annex
A.
Score Adjectival Rating Summary of Performance

> 95 to 100 Level 5 - Outstanding Demonstrates exceptional
performance in all operational
and competency standards.
> 85 but < 95 Level 4 - Very Satisfactory Exceeds the minimum

operational and competency
standards.
> 75 but < 85 Level 3 - Satisfactory Complies with the minimum
operational and competency
standards.
> 65 but < 75 Level 2 - Unsatisfactory Fails to meet the minimum
operational or competency
standards
< 65 Level 1 - Poor Fails to deliver most or
all of the operational or
competency standards.
Section 8. Coverage of Rating Period. Performance evaluation for local treasurers and
assistant treasurers shall be undertaken annually, and the performance period shall cover one full
fiscal year or from January 1 to December 31. In the event that a local treasurer or assistant treasurer
has not completed one full fiscal year of service, the rating shall be based on at least six (6) months of
service and the parameters for evaluation shall be adjusted accordingly by the BLGF. No evaluation
shall be made for services rendered for less than six
(6) months.
Section 9. Performance Evaluation Cycle. The following stages shall be observed in

the course of the performance evaluation by the BLGF and all other concerned parties:
181

LTOM, 2ND EDITION
Stage 1: Local Revenue Target Setting. With reference to Section 5, Item 1.3, this
stage shall be undertaken from April to May of the fiscal year prior to the start of the
performance period where targets for all local revenues are determined, issued and validated
with the local treasurers. Upon concurrence and acceptance by the concerned local treasurer
and assistant treasurer, such targets shall be deemed final.
Stage 2: Collection Enforcement and Compliance Monitoring. In this stage, the

BLGF shall regularly monitor the plans and programs of local treasurers and assistant
treasurers and provide the necessary technical assistance in support of local treasury
administration and other LGU-set performance goals, as well as the treasurer’s compliance
concerning reportorial obligations, primarily the SRE, actions on the COA adverse findings
(if any), progress on the institution of collection remedies, continuing capacity building
programs, among others.
Stage 3: Data Validation and Rating. The actual performance evaluation shall begin in
June of the subsequent fiscal year that is subject of the performance evaluation and shall
conclude in October of the same year. As such, the BLGF Central Office shall first release
the preliminary data/results of applicable OPG indicators to all BLGF Regional Offices no
later than the end of June every year. Subsequently, the BLGF shall notify all local treasurers
and assistant treasurers to submit the pertinent documents required in the OPG and CPG
indicators that cannot be generated by the eSRE system. Within two (2) months after the
release of SRE data, the validation and confirmation of the results of the evaluation shall be
completed for approval by the BLGF. The BLGF may delegate only to the Provincial
Treasurers the gathering and consolidation of documents required from municipal treasurers,
but it shall be the sole duty of the BLGF to rate, determine, and discuss the results of the
performance of all treasurers and assistant treasurers. The Checklist of requirements is
attached as Annex B.
Stage 4: Performance Results Awarding and Intervention Planning. The final

results of the annual performance evaluation shall be released and issued to all local
treasurers and assistant treasurers, as well as to their respective local chief executives and
other concerned parties, every October. The BLGF may award local treasurers and assistant
treasurers in recognition of exceptional performance in their work. No other performance
awards shall be given instituted unless they are linked with the Performance Standards. In
addition, the BLGF shall ensure that appropriate measures and actions are enforced based on
the results of the performance evaluation, including but not limited to personnel action and
intervention development and planning to address weaknesses and gaps of local treasurers
and assistant treasurers.
Section 10. Performance Evaluation Group. The BLGF shall constitute the Personnel
Evaluation Group (PEG) for Local Treasurers and Assistant Treasurers, under the Administrative,
Financial and Management Service, with counterpart structure in all BLGF Regional Offices. The
PEG shall take charge of all performance planning, programming, and implementation activities, and
action on appeals, to ensure a synchronized and objective evaluation of all local treasurers and
assistant treasurers. Further, the PEG, which shall be headed by the Executive Director, shall
review and recommend for the approval of the Secretary of Finance all performance evaluation
results of local treasurers and assistant treasurers.
Section 11. Accuracy and Integrity of Evaluation Tools and Data Sources. The
BLGF shall ensure that the data sources, systems and tools, as identified in all the OPG and CPG
indicators, to be used in the performance evaluation of local treasurers and assistant
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FORMS AND ANNEXES
treasurers are verified, true and accurate. The necessary management information systems, tools and
procedures shall be adopted to ensure timely, accurate and reliable monitoring and reporting to
support the efficient conduct of performance evaluation. The use of falsified data and evidence of
performance shall be subject to the appropriate administrative sanctions.
Section 12. Appeals. Considering that the outcome of the annual performance evaluation
may affect tenure, and other personnel actions, such as promotion and performance recognition, local
treasurers and assistant treasurers have the right to appeal within ten (10) days upon receipt of the
evaluation by the BLGF.
Section 13. Personnel Action and Capacity Building Interventions. The BLGF
shall introduce appropriate capacity building programs and other remedial interventions based on the
results of the performance evaluation, especially for treasurers and assistant treasurers who receive
“Unsatisfactory” and “Poor” performance ratings. In the event that a local treasurer or assistant
treasurer receives “Poor” rating in two consecutive evaluation periods, the BLGF shall institute the
appropriate administrative sanction pursuant to the Revised Rules on Administrative Cases in the
Civil Service.
Section 14. Penalty Clause. Failure to comply with the provisions of this Order shall be
a ground for an administrative sanction for violation of reasonable office rules and regulations, and
neglect of duty for non-compliance with this Order.
Section 15. Repealing Clause. All orders, memoranda, circulars or other issuances or
parts thereof that are inconsistent with this Department Order are hereby deemed repealed and/or
modified accordingly.
Section 16. Separability Clause. If any part of this Department Order is declared by the
courts as unconstitutional or contrary to existing laws, the other parts shall remain in full force and
effect.
Section 17. Effectivity. This Department Order shall take effect immediately upon its
publication in a newspaper of nationwide circulation.
CESAR V. PURISIMA
183

LTOM, 2ND EDITION
-ANNEX A-
Bureau of Local Government Finance
PERFORMANCE STANDARDS EVALUATION

OF LOCAL TREASURERS AND ASSISTANT TREASURERS
For the Fiscal Year
Name: Station:
Position:
Part I: Operational Performance Goals (OPGs)

Indicator Max Score Score Earned
1. Local Collection Efficiency 24.5
2. Stable and reliable local revenue growth 14.0
3. Optimum cash management 10.5
4. Institution of administrative and judicial remedies 7.0
5. Reportorial compliance with DOF requirements 7.0
6. Compliance with COA rules and regulations 3.5
7. Cost effective local revenue collection 3.5
OPG Total Score 70
Part II: Competency Performance Goals (CPGs)

Indicator Max Score Score Earned
1. Code of conduct and ethical standards 12.0
2. Capacity building and professional development 9.0
3. Professional recognition and achievements 4.5
4. Office management tools and support system/s 3.0
5. Use of non-traditional collection strategies 1.5
CPG Total Score 30
Legend
Score Adjectival Rating Total Score
> 95 to 100 Level 5 - Outstanding (I + II)
> 85 to < 95 Level 4 - Very Satisfactory
> 75 to < 85 Level 3 - Satisfactory
Adjectival
> 65 to < 75 Level 2 - Unsatisfactory
Rating
< 65 Level 1 - Poor
Recommending Approval: Conforme:
Name of Signature of RD/ED Name of Signature of Ratee

Approved by:
Issued this day of 20
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ONLINE EDITION - COMPLIMENTARY COPY

ONLINE EDITION - COMPLIMENTARY COPY

ONLINE EDITION - COMPLIMENTARY COPY

Second Printing, 2020.

Printed in the Philippines

Published by the Bureau of Local Government Finance

Copyright © Bureau of Local Government Finance, 2019 Telefax:

All rights reserved.

Cover design and layout by: Jane Dianne S. Gaylican

ONLINE EDITION - COMPLIMENTARY COPY

ONLINE EDITION - COMPLIMENTARY COPY

ONLINE EDITION - COMPLIMENTARY COPY

ONLINE EDITION - COMPLIMENTARY COPY

ONLINE EDITION - COMPLIMENTARY COPY

NIÑO RAYMOND B. ALVINA

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DEPARTMENT ORDER NO.

Local Treasury Operations Manual (LTOM), 2nd Edition

Book III Fund Management Practices, Expenditures and Disbursement; and

Book IV Detailed Procedures on the Administration and Collection of Real Property

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LOCAL TREASURY OPERATIONS MANUAL

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2. Relationship of the LTOM to Existing Laws, Issuances and

C.OBJECTIVES OF THIS MANUAL

D. BRIEF DESCRIPTION OF THIS MANUAL

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FORMS AND ANNEXES 80

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MMDA Metro Manila Development Authority

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LTOM Book I consists of five (5) Chapters, including Annexes, as follows:

Chapter 1 Fiscal Organization of Local Government Units (LGUs)

Chapter 2 The Local Treasurer and the Assistant Local Treasurer

Chapter 3 Administrative and Technical Supervision by the BLGF

Chapter 4 Roles, Duties and Responsibilities of the Local Treasurer

Chapter 5 Bonding of Local Treasurers and Other LGU Accountable Officers

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SECTION 1. LEGAL FRAMEWORK

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SECTION 2. CREATION, DIVISION, MERGER, ABOLITION

It must be sufficient, based on acceptable standards, to provide for all

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Coverage/ Requisites for Creation Legal

City3 Municipality Locally generated A population A contiguous RA

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Coverage/ Requisites for Creation Legal

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Coverage/ Requisites for Creation Legal

C. Requirements for the Merger/Consolidation or Abolition of LGUs

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2. In the exercise of its right to self-governance, the Bangsamoro Autonomous

SECTION 3. THE PROVINCIAL/CITY/MUNICIPAL TREASURY OFFICE

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SECTION 4. ORGANIZATIONAL STRUCTURES: