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BUREAU OF LOCAL GOVERNMENT FINANCE DEPARTMENT OF FINANCE. Financial Management and Accountability for Sustainable Local Governance. PUBLIC FINANCIAL MANAGEMENT The Framework. Effective and Accountable PFM . PLAN. PUBLIC FINANCIAL MANAGEMENT The Framework. Revenue Generation. - PowerPoint PPT Presentation
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BUREAU OF LOCAL GOVERNMENT FINANCEDEPARTMENT OF FINANCE
Financial Managementand Accountability
for Sustainable Local Governance
Revenue Generation
Budgeting (Expenditure Management
+Procurement)
Cash Management
Debt Management
Accounting
Auditing
Public Reporting on
Financial Operations
PUBLIC FINANCIAL MANAGEMENTThe Framework
Effective and Accountable
PFM PLAN
Effective and Accountable
PFM PFM
Revenue Generation
Budgeting (Expenditure Management)
Cash Management
Debt Management
Accounting
Auditing
Public Reporting on
Financial Operations
PUBLIC FINANCIAL MANAGEMENTThe Framework
PLAN
1. THE LGU PFM REFORM ROADMAP 2. THE PFM REFORM IMPLEMENTATION
STRATEGY
Outline of Presentation
2 Ws and 1 H of the LGU PFM Reform Roadmap
Why, What and How….
LGU PFM Reform Implementation Strategy
Why develop the LGU PFM Reform Roadmap?
BASIC CONSIDERATIONS:
1. CAPACITY TO HANDLE FUNDS
2. CAPABILITY TO IMPLEMENT PROJECTS
3. OPERATIONAL ACCOUNTABILITY MECHANISMS
Why develop the LGU PFM Reform Roadmap?
Effective and Accountable Public
Financial Management
Need for a Single and Comprehensive Guide to
address Weak PFM
o Lack of fiscal sustainability and poor expenditure management
o Inadequate accountability mechanisms
o Weak coordination among Oversight Agencies (OAs) and between OAs and LGUs
What is the LGU PFM Reform Roadmap?
o A strategic guide on what we (LGUs) want to do and achieve with our PFM in the immediate, medium and long term periods to attain our desired end-state (goal)o complemented by a well-designed
action program that details the activities and timeframe on how and when we could reach our PFM goal and vision.
Impact of the Roadmap
Two very crucial systems in the efficient and effective delivery of services!
o Provide LGUs with strategic directions to strengthen their PFM system towards improved revenue generation and expenditure management
Impact of the Roadmap
o Guide Development Partners in identifying possible entry points for financial support and other interventions
o Assist the OAs to strengthen their coordination in better supporting PFM reforms identified, designed and being implemented by the LGUs
How was the LGU PFM Reform Roadmap
developed?established the current state of LGU
PFM system
identified the desired end-state of the said system
laid down the policy agenda that will help both LGUs and Oversight
Agencies (OAs) in getting to the desired end-state
Established Baseline InformationCurrent
State• Rapid Assessment prepared by the Technical
Assistance Team• PFMAT results of 550 FY 2013 Grassroots
Participatory Budgeting Process (Bottom-up Budgeting) focus LGUs
How was the LGU PFM Reform Roadmap
developed?
1
2
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
Established Baseline InformationCurrent
State• Rapid Assessment prepared by the Technical
Assistance Team• PFMAT results of 550 FY 2013 Grassroots
Participatory Budgeting Process (Bottom-up Budgeting) focus LGUs
How was the LGU PFM Reform Roadmap
developed?
Took stock of the current directions and initiatives undertaken by government and
development partners
1
2
1
Established Baseline Information
Current State
• Rapid Assessment prepared by the Technical Assistance Team
• PFMAT results of 550 FY 2013 Grassroots Participatory Budgeting Process (Bottom-up Budgeting) focus LGUs
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
How was the LGU PFM Reform Roadmap
developed?
PFMAT is a self-assessment, evidence-based instrument which describes the characteristics of an open
and orderly PFM system. It is a diagnostic tool which will help LGUs identify the strengths and weaknesses of
their PFM system as basis for improvement measures.
2
PFMAT Results
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
o FY 2013 Bottom-up Budgeting (BuB) focus LGUs earned a total mean rating of 2.34
o Indicates that elements of an open and orderly PFM system are not complete but what exist are already fully operational
PFMAT Results
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
o Lowest ratings indicate the elements not yet in place:» Internal and External
Audit» Policy-based Budgeting» Accounting, Recording
and Reporting
PFMAT Results
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
INTERNAL & EXTERNAL AUDIT• Most LGUs do not have Internal Audit
Service (IAS) Units• No internal audit reports which are
prepared for management to act upon• Settlement of disallowances and
compliance with audit recommendations by the LGUs are low
PFMAT Results
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
POLICY-BASED BUDGETING• Strong link between AIP and Budget
but weak linkage among development plans (PDPFP/CDP-LDIP-AIP)• CDP not prepared by most LGUs
• LEEs not financially self-reliant• Only 1 to 2 PFM Improvement
Policies included in the Budgets
PFMAT Results
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
ACCOUNTING, RECORDING & REPORTING
• LGUs are not able to fully comply with the reglementary periods for reconciling bank accounts and liquidating cash advances
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
Current Issues in PFM identified and validated by Stakeholders (OAs and LGUs)
Current State
• Rapid Assessment prepared by the Technical Assistance Team
• PFMAT results of 550 FY 2013 Grassroots Participatory Budgeting Process (Bottom-up Budgeting) focus LGUs
• Consultation Workshops with stakeholders
How was the LGU PFM Reform Roadmap
developed?
Validated in nationwide Consultation Workshops with OAs and LGUs (October 2013 – March 2014)
1
2
3
Validation of PFMAT Results
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
POLICY-BASED BUDGETING
PFMAT RESULTS VOICE OF THE STAKEHOLDERS• Strong link between AIP and
Budget but weak linkage among development plans (PDPFP/CDP-LDIP-AIP)
• LEEs not financially self-reliant• Only 1 to 2 PFM Improvement
Policies included in the Budgets
• Weak alignment between Development Plans & Budget
• Lack of long-term planning perspective• Lack of alignment between PPAs and policies
and current issues• Weak LEEs• There are bottlenecks in the budgeting
process
Participants to the Consultations:
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
REGION NO. OF LGUs
NO. OF PAX REGION NO. OF
LGUsNO. OF
PAX
CAR 7 9 6 10 13
NCR 5 8 7 5 5
1 6 6 8 4 4
2 6 9 9 5 6
3 4 6 10 3 3
4A 5 5 11 12 16
4B 4 4 12 6 9
5 5 6 13 6 6
Participants to the Consultations:
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
REGION NO. OF LGUs
NO. OF PAX REGION NO. OF
LGUsNO. OF
PAX
CAR 7 9 6 10 13
NCR 5 8 7 5 5
1 6 6 8 4 4
2 6 9 9 5 6
3 4 6 10 3 3
4A 5 5 11 12 16
4B 4 4 12 6 9
5 5 6 13 6 6
TOTAL LGUS = 93
TOTAL PARTICIPANTS = 115
Participants to the Consultations:
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
•18PROVINCES
•31CITIES
•44MUNICIPALITIES
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
Determined by Stakeholders (OAs & LGUs)
Desired End-State
How was the LGU PFM Reform Roadmap
developed?
“An open and transparent LGU PFM System that is stable
and sustainable, renders financial
compliance, underpins efficient
and effective delivery of services, ensures the highest level of accountability and provides genuine
citizens’ participation.”
GOAL“An LGU service
delivery system that lowers the cost of doing business,
stimulates private investments,
generates employment and
income opportunities, improves welfare
levels for LGU constituents and accelerates local
economic growth.”
VISION• Strong linkage of long term plans with
Annual Budget• Budget requirements understood by
all and stirs public involvement in the budget process
• Sufficient funds for programs and projects anchored on long term plans
• Self-reliant LGUs that generate sufficient local revenues to support budget expenditures
• Simplified financial systems that yield timely, accurate and credible financial information
• Functional and operational Internal Audit Service which leads to zero COA disallowances
• Quality participation of CSOs in the planning and budgeting process
STAKEHOLDERS’ VOICE
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
Determined by Stakeholders (OAs and LGUs)
Issue and Policy
Agenda
How was the LGU PFM Reform Roadmap
developed?
Link between PDPFP / CDP –LDIP – AIP and
Budget
ISSUE
Strengthen the linkage between
PDPFP/ CDP –LDIP – AIP and
Budget
POLICY AGENDA
ROADMAPIMPLEMENTATION STRATEGY
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE
PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)This project is funded by the European Union and implemented by the Government of the
Philippines
The LGU PFM REFORM
The LGU PFM Reform Implementation Strategy
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
Operationalizes the LGU PFM
Reform Roadmap
Lays down the specific actions to be done to carry out the policy
agenda that will result to the outcomes
Anticipates the implementation risks
and identifies mitigating measures
The LGU PFM Reform Implementation Strategy Matrix
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
Issue
Link between PDPFP/ CDP – LDIP – AIP and Budget
Policy Agenda
Strengthen Linkage between PDPFP/ CDP –
LDIP – AIP and
Budget
Implementation Strategy
(OAs)
Enhance CDP / LDIP
Manual
Implementation Strategy
(LGUs)
Issue policy
reiterating complianc
e with Enhanced
CDP Manual
Outcomes
2016 All LGUs
fully capacitated to prepare CDPs with matching
LDIPs from which AIPs are derived
Risks
Capacity of ROs’
technical personnel to provide
TA to LGUs
Mitigation
CapDev for ROs on PFM tools
Immediate Outputs from the Oversight Agencies
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
1. Enhanced Joint Memorandum Circular No. 1 on the Harmonization of Local Planning, Investment Programming, Revenue Administration, Budgeting and Expenditure Management
2. Enhanced Public Financial Management Assessment Tool for LGUs and Software
3. Enhanced CDP/LDIP Manual
4. Guidebook on Local Economic Enterprises
5. Enhanced Full Disclosure Policy
6. Standard Revenue and Expenditure, Cash Flow Forecasting Tools
Immediate Outputs from the Oversight Agencies
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
7. Recommendations on the Amendment of the Local Government Code
8. Enhanced Revenue Generation Manuals (LTOM, MELTO, AEEM)
9. Harmonized Policy on CSO accreditation and Handbook on CSO Participation in the Budget Process
10. Harmonized Financial Reports and Templates
11. Localized Internal Audit Manual
12. Revised Budget Operations Manual for LGUs
Core Approaches to Implementation of PFM Reforms
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
1. Multiply sponsorship in the implementation of the LGU PFM Reform
Expand the engagement of all stakeholders in the implementation of LGU PFM Reforms to ensure attainment of:
• Improved Capacities of OAs and LGUs
• Improved LGU PFM systems• Improved service delivery by LGUs
Proposed Structure
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
National Inter-Agency Team
High-level representatives of OAs supported by TWG from LGU Policy Units of OAs
LGU PFM Teams
Regional Inter-Agency TeamsSupported by Composite PFM Team
Transition Set-upLGU PFM Reform
Roadmap
Project Steering Committee
High-level representatives of OAs supported by PTWG
LGU PFM Teams
Regional Inter-Agency TeamsRIAT supported by Composite PFM Team
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
2. Empower LGUs to customize their PFM Improvement Plan (PFMIP)
LGU stakeholders and sponsors will be enabled to assess their PFM system, design and actualize their PFMIPs based on their own
level of readiness
Core Approaches to Implementation of PFM Reforms
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
3. Harmonize and coordinate Oversight Agencies’ technical support to LGUs
LGU PFM Reforms seeks to institutionalize
convergence of the OAs in providing technical assistance to LGUs
Core Approaches to Implementation of PFM Reforms
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
4. Capacitate Oversight Agencies and LGUs to Manage the Reform
OA and LGU Stakeholders and Sponsors/Champions
will be capacitated on change management
Core Approaches to Implementation of PFM Reforms
WHAT IS THE CONNECTION AMONG THE ROADMAP,
IMPLEMENTATION STRATEGY AND PFMIP?
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE
PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)This project is funded by the European Union and implemented by the Government of the
Philippines
The Roadmap, Implementation Strategy & PFMIP
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
RoadmapA strategic guide on what we (LGUs)
want to do and achieve with our PFM
in the immediate, medium and long
term periods to attain our desired end-state
(vision)
Implementation StrategyLays down the
specific actions to be done to carry
out the policy agenda that will
result to the outcomes, and anticipates the
implementation risks and identifies
mitigating measures
PFMIPDetails the specific activities which the LGU will undertake to
strengthen its PFM System over a given
period of time together with the
resources needed to carry them out
Prepared jointly by LGUs and OAs to serve as their
overall strategic guidePrepared by LGUs to implement PFM
reforms
The LGU PFM Reform Roadmap
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
Issues to be
Addressed (1)Link
between PDPFP/CDP –LDIP – AIP and Budget
Policy Agenda
(2)
Strengthen the linkage between
PDPFP/CDP –LDIP – AIP and Budget
Outcomes (3)
All LGUs capacita-
ted to prepare
and update their CDPs and
matching LDIPs from which AIP is culled
2016 2019 2022
LGUs prepare
and update their CDPs and
matching LDIPs from which AIP is culled
Strong linkage
between PDPFP/ CDP -
LDIP-AIP and
Budget ensured
Responsible Units(5)
DILGNEDADBMBLGFLGUs
Indicators
(4)
2016·Proportion
of LGUs with enacted or
draft PDPFPs/CD
Ps and LDIPs prepared and harmonized according
with DILG/NEDA Guidelines
The Implementation Strategy
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
Issues to be
Addressed (1)
Link betwee
n PDPFP/CDP –LDIP –
AIP and Budget
Policy Agenda
(2)
Strengthen the
linkage between PDPFP/
CDP –LDIP – AIP and Budget
Outcomes (4)
All LGUs capacita-
ted to prepare
and update their
CDPs and matching
LDIPs from
which AIP is culled
2016 2019 2022
LGUs prepare
and update their
CDPs and matching
LDIPs from
which AIP is culled
Strong linkage
between PDPFP/ CDP -
LDIP-AIP and
Budget ensured
Implementation Strategies (3)
Enhance CDP/LDIP Manual
including incorpora-tion of GPBP
principles and
alignment with
PDPFP / PDIP at
provincial level
Issue policy
reiterating complianc
e with updated
CDP / LDIP Manual
OAs LGUs Mitigation
Risks
Risk Register (5)
Capacity of ROs’
technical personnel to provide
TA to LGUs
CapDev for ROs on PFM
tools
The PFM Improvement Plan (PFMIP)
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
Issues to be
Addressed (1)
Link between PDPFP / CDP –LDIP –
AIP and Budget
Policy Agenda
(2)
Strengthen the
linkage between PDPFP/
CDP –LDIP – AIP and Budget
Implemen-tation
Strategies (3)
Issue policy reiterating compliance
with updated
CDP / LDIP Manual
Outputs (5)
Executive Order /
Sanggunian Resolution
Budget(8)
P20,000.00
Activities (4)
Conduct orientation
on the updated
CDP / LDIP ManualIssue
Executive Order /
Sanggunian Resolution
Responsible Unit
(6)
LPDO
LCE / Sanggunia
n
Schedule(7)
January 2015
February 2015
LGU: Municipality of San JulianFor Fiscal Year 2015
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
Prioritizing the Specific Activities for the PFMIP
Categorize Tasks
Identify what is most feasible and have the highest value in terms of visible impact in the shortest time• In what order do actions need to be taken• What are the interdependencies in our activities?• What is the local capacity to absorb change?
Short-term
Medium-term
Long-term
SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)
“What is technicall
y most important may not
be tactically feasible.”
Balance Technical with Tactical Considerations:• Technical Aspects – what needs
to be done to improve PFM
• Resources – personnel, financial and other logistics
• Political Demand – what is wanted and can be supported by key stakeholders (LCE & Local Sanggunian)
Prioritizing the Specific Activities for the PFMIP
Ano’ng Iskor ng ‘yong Bayan?
LGU FISCAL SUSTAINABILITY SCORECARDFinancial Management Performance Review for Local Government Units
FY2009FY2010FY2011FY2012
0.91%
0.86%0.89%
0.80%
2009 2010 2011 2012
Declining, <1%locally sourced income to GDP
Perspective“Supervision of revenue operations of all LGUs”“Monitor and support the implementation of policies and measures on local revenue administration”
Assessment of fiscal indicators necessary for exercise of mandateAgency has to have a systematic, not sporadic, process for regular assessment of fiscal performance of LGUs
Protection of revenue integrity, data analytics and metrics Closer, thorough monitoring of revenue performance of LGUsEvidence- and policy-based performance assessment of local treasurers and assessorsGeneral housekeeping of reportsVisit in BIR revenue regions / BOC ports /LGUs
Directives
of the Secretary
of
Finance
Basis for Evaluation
DOF Department Order No. 08-2011: Statement of Receipts and Expenditures
Treasurer: eSRE System in the LGUs
Assessor: Quarterly Reports on Real Property Assessments
LGU Fiscal Performance Monitoring System
BLGF’s Local Revenue Targets
SMV Profile and Ordinances of LGUs?
Local Government UnitFISCAL SUSTAINABILITY S C O R E C A R DDirective of the SecretaryBaselining the LGU performance from FY2009 to FY2012Validating the LGU data and testing the integrity of BLGF reportsCompliance monitoring on DOF directives and other relevant regulationsPublication of LGU performancePolicy setting purposes
Indicators
Financial (Quantitative) - 90%KRA 1 - Revenue Generation CapacityKRA 2 - Local Collection GrowthKRA 3 - Expenditure Management
Non-Financial (Qualitative) - 10%KRA 4 - 6 - Reportorial Compliance
Pass
Fail
100%
P
Financial IndicatorsKRA 1. Revenue Generation Capacity
Indicator1.1 Regular income level1.2 Local revenue level1.3 Local revenue growth (tax and non-tax revenues)1.4 Dependence on locally sourced income
1.5 Dependence on IRA1.6 Dep. on Other Shares from National Tax Collection
Focusing on Actual Utilization, not Budget AppropriationStatutory Obligations and Limitations
Financial IndicatorsKRA 3. Expenditure Management
Indicator3.1 Expenditure Per Capita3.2 Use of IRA for Local Devt. Project (>=20% of IRA)
3.3 Limitation on Expenditure for PS (<=45%/55% of Regular Income of the Next Preceding Fiscal Year)3.4 Limitation on Debt Service (<=20% of IRA)
P
7 out of 10 Treasurers Did Not Submit SRE on Time
Non-Financial IndicatorsKRA 4. eSRE
Indicator
Submission of Timely and Accurate eSRE
15 Cities & Provinces have new SMVs effective 2014
But 130+ More Are Already DUE…
Non-Financial IndicatorsKRA 5. SMV Updating
Indicator
Regular Updating of SMV andConduct of General Revision of Property Assessments
Is the assessor correctly accomplishing the QRRPA?Are there properties with restrictions? Is the land area correct?
Non-Financial IndicatorsKRA 6. Quarterly Report on Real Property Assessments (QRRPA)
Indicator
Submission of Timely andAccurate QRRPA
Final Rating
KRA Max Score
Quantitative 901. Revenue Generation Capacity 602. Local Collection Growth 203. Expenditure Management 10
Qualitative 104. Timely & Accurate eSRE Report 4
5. Current & Updated SMV 36. Timely & Accurate QRRPA 3
Final RatingWeighted
ScoreGrad
e Rating Remarks
>=80 A Excellent All revenue and expenditure indicators are strong; full compliance with reportorial requirements
>=70 but <80 B Very Good
Most of the revenue and expenditure indicators are met very satisfactorily; high compliance with reportorial requirements
>=60 but <70 C Good
Most of the revenue and expenditure indicators are above average performance; minimum level of compliance with reportorial requirements
>=50 but <60 D Average
Revenue and expenditure indicators have not significantly changed and are generally on the average; minimum level of compliance with reportorial requirements
>=40 but <50 E Needs
ImprovementAlmost all of the key revenue and expenditure indicators need to be improved and validated; minimum reportorial requirements are not complied with
<40 F PoorAll revenue and expenditure indicators are way below the benchmarks; key reportorial requirements are incomplete/not submitted and/or require further validation
Methodology Utilized the BLGF SRE of all provinces, cities, and municipalities, and the QRRPA of provinces and cities from FY2009-FY2012
Run date of SRE: 15 August 2013
Processed individual SRE fields per LGU (initially cities and provinces) through pivot tables
Benchmarking and national comparison through DOF income classification as of 2008
One-on-one data- and process- validation with LGUs and BLGF regions
Sample Preliminary Scorecardxxx
Sample Preliminary Scorecard
RPT Collection Efficiency & YoY Collection Performance
VISIT ISKOR.BLGF.GOV.PH
In the pipeline…
Linking of Scorecards with “Open Data Initiative” Credit rating for LGUs will be nextContinuous monitoring and improvement of SRE’s integrityMunicipal scorecards release by early JuneRegional BLGF staff to be trained on LGU FSS
Ano’ng Iskor ng
‘yong Bayan?
THANK YOU!