Basic Operations On Local Treasury Service Training: Legal Basis

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BASIC OPERATIONS ON LOCAL TREASURY SERVICE TRAINING

President Dutertes’ Proposed 10-Point Socio- Economic Agenda

1. Continue and maintain current macroeconomic policies, including fiscal, monetary, and trade policies.

2. Institute progressive tax reform and more effective tax collection, indexing taxes to inflation. A tax reform
package will be submitted to Congress by September 2016.

3. Increase competitiveness and the ease of doing business. This effort will draw upon successful models used to
attract business to local cities (e.g., Davao) and pursue the relaxation of the Constitutional restrictions on foreign
ownership, except as regards land ownership, in order to attract foreign direct investment;

4. Accelerate annual infrastructure spending to account for 5% of GDP, with Public-Private Partnerships playing a
key role.

5. Promote rural and value chain development toward increasing agricultural and rural enterprise productivity
and rural tourism.

6. Ensure security of land tenure to encourage investments, and address bottlenecks in land management and
titling agencies.

7. Invest in human capital development, including health and education systems, and match skills and training to
meet the demand of businesses and the private sector.

8. Promote science, technology, and the creative arts to enhance innovation and creative capacity towards self-
sustaining, inclusive development.

9. Improve social protection programs, including the government’s Conditional Cash Transfer program, to protect
the poor against instability and economic shocks.

10. Strengthen implementation of the Responsible Parenthood and Reproductive Health Law to enable especially
poor couples to make informed choices on financial and family planning.

BLGF’s ROLE IN THE ADMINISTRATIVE GOVERNANCE OF LOCAL TREASURY OPERATIONS


Legal Basis:
1. “REORGANIZING THE MINISTRY OF FINANCE” EO No. 127- January 30, 1987
2. "INSTITUTING THE ADMINISTRATIVE CODE OF 1987”- EO No. 292 July 25, 1987
Bureau of Local Government Finance
- is the arm of the Department of Finance responsible for the formulation and execution of policies to uphold the
financial viability of local government units.
- It focuses on the function of assisting the local government sector improve their fiscal status.
- Under a decentralized environment, BLGF promotes fiscal autonomy and effective financial management in the LGUs.

BLGF VISION/MISSION GOALS and FUNCTIONS


Vision
BLGF of the Department of Finance is the focal agency and an authority in local finance that aims to be at the forefront
of local economic growth leading the way towards national development.

Goals
1. To support national development programs and priorities.
2. To provide administrative and technical support to local treasury and assessment offices.
3. To provide consultative/ technical assistance to local government unit for them to attain financial stability and
growth.
4. To enable LGUs to deliver essential services more efficiently and effectively

Functions
1. Assist in the formulation and implementation of policies on local government revenue administration
and fund management;
2. Exercise administrative and technical supervision and coordination over the treasury and assessment
operations of local governments;
3. Develop and promote plans and programs for the improvement of resource management system,
tax collection enforcement mechanism and credit utilization schemes at the local levels;
4. Provide consultative services and technical assistance to the local governments and the general public
on local taxation, real property assessment and other related matters;
5. Exercise line supervision over its Regional Offices/field units within the Department Regional
Administrative Coordination Office and the Local Treasury and Assessment Services; and
6. Perform such other appropriate functions as may be assigned by the Secretary or Undersecretary for
Domestic Operations
Continuing Professional Development of Assessors

1. BLGF is accredited by PRC as ‘Institutional Continuing Professional Education Provider.


2. BLGF provides technical trainings that are creditable as CPE units for renewal of Real Estate Appraiser’s license,
pursuant to RA No. 9646 (Real Estate Service Act)
3. Trainings include:
a. Philippine Valuation Standards
b. Mass Appraisal
c. Real Property Tax Administration
d. SMV Updating and General Revision of Property Assessments, etc.

Authority of the Secretary of Finance to Appoint Local Treasurer and Assistant Treasurer

1. The appointment of a Treasurer shall be mandatory for Provincial, City and Municipal Governments (Sec. 470
(c), LGC)

while the appointment of an Assistant Treasurer shall be optional for provincial, city and municipal
governments (Sec. 471(b), LGC)

2. 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)

3. 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. (Sec. 79, LGC)
4. The Secretary of Finance may delegate the appointing authority over Provincial, City and Municipal Treasurers
and their Assistants, with the exception of Treasurers and Assistant Treasurers in Metro Manila.

Authority of the Local Chief Executive (LCE) over the Local Treasurer and Assistant Treasurer

The Treasurer shall be under the administrative supervision of the Governor or Mayor, as the case may be, to
whom he shall report regularly on the tax collection efforts in the LGU (Sec. 470 (b)(c), LGC).

No person shall be appointed Treasurer unless, he/she possess the following qualifications:

1. A citizen of the Philippines (dual citizenship not allowed, CSC MC 23 s.2016);


2. A resident of the LGU concerned;
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)

The Secretary of Finance, in the exercise of his/her appointing power, may institute additional competency
standards as criteria in the selection process subject to civil service rules and regulations.

Automatic Succession of the Assistant Provincial/City/Municipal Treasurer as Acting/OIC/ICO


Provincial/City/Municipal Treasurer.

1. In case of the absence or disability of the head of a bureau or office, his duties shall be performed by the
assistant head. When there are two or more assistant heads, the Secretary shall make the designation. In the
absence of an assistant head, the Secretary may designate any officer or employee of the bureau or office as
acting head without additional compensation. (Sec.32, Chapter 6, Book IV. E.O. 292)

2. The regularly appointed Assistant Provincial/City/Municipal Treasurer who automatically assumes as


Acting or OIC-Provincial/City/Municipal Treasurer shall within 24 hours notify directly the BLGF Regional
Director concerned 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.
3. Within 48 hours after receipt of the notice, the BLGF Regional Director shall issue the Order of Designation
of the Assistant Provincial/City/Municipal Treasurer, subject to the confirmation of the Secretary of Finance.
It shall be the duty of the BLGF Regional Director concerned to ensure that impending vacancies are
properly monitored and immediately acted upon.

Designation in the Absence of an Assistant 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 or OIC
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 local government unit 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 Provincial/City/Municipal Treasurer.

Detail or Temporary Assignment of Local Treasurers and Assistant Local Treasurers

1. A detail is the movement of an employee from one department or agency to another, which is temporary in
nature and does not involve a reduction in rank, status or salary and does not require the issuance of another
appointment.

2. The employee detailed receives his/her salary only from his/her mother unit/agency.

3. Guidelines to be observed regarding the detail or temporary assignment of Local Treasurers and Assistant Local
Treasurers:
a. The LCE requesting the detail or temporary assignment shall submit a written request to the Secretary
of Finance. The request shall state the name of the employee to be detailed, the period of detail and the
reasons for the detail.
b. In case of detail or temporary assignment from one LGU to another LGU, the request for such detail or
temporary assignment shall be approved only upon the concurrence in writing by the LCE of the LGU
where the Local Treasurer or Assistant Local Treasurer sought to be detailed is permanently appointed
or stationed. (DOF Department Personnel Order No. 335-03, October 1, 2003)
c. No detail or reassignment shall be made within three (3) months before any election. (Sec. 5, Rule XVIII;
Omnibus Rules Implementing Book V of E. O. No. 292 and Other Pertinent Civil Service Laws)

Powers and Duties of Local Treasurer and Assistant Treasurer

The Local Treasurer shall take charge of the Local Treasury Office and perform the following duties and
functions:

1. Collect all local taxes, fees and charges directly or through their duly authorized deputies (Sec. 170, LGC);
2. 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;
3. Take custody of and exercise proper management of the funds of the LGU concerned;
4. 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;
5. Inspect private commercial and industrial establishments within the jurisdiction of the local government
unit concerned in relation to the implementation of tax ordinances, pursuant to the provisions under Book II
of the LGC;
6. Maintain and update the tax information system of the LGU;
7. In the case of the Provincial Treasurer, exercise technical supervision over all treasury offices of component
cities and municipalities; and
8. Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
9. Specific Functions:
a. Certify as to the Availability of Funds
b. Implement Tax Collection and Enforcement Program
c. Prepare and Submit Reports
d. Certify RPT Delinquencies Remaining Uncollected
e. Examine the Books of Accounts and Pertinent Records of Businessmen
f. Submit Certified Statement Covering Income and Expenditures
g. Issue a Certified Statement Covering Actual Income
h. Keep full sets of secondary standards for use in the Testing of Weights and Measures
i. Register in a Book All Branded and Counter Branded Animals
j. See to it that Payment of Taxes of a Business is not Avoided Through Simulation of the Retirement
thereof and Recommend to the Mayor for the Disapproval of the Application for the Termination or
Retirement of the Business
k. Attend Sessions of the Sanggunian
l. Exercise Such Other Powers and Functions and Perform Such Other Duties and Responsibilities
1) Remit of the Bureau of Internal Revenue (BIR); the Government Service Insurance System
(GSIS); Pag-ibig; Philhealth obligations and share of Metro Manila Development Authority
(MMDA) for LGUs in Metro Manila.
2) Deputies of the National Government Alien Registration Fees.
3) Member of the following Local Committees and Boards:
i. Local Finance Committee
ii. Local School Boards
iii. Appraisal Committee (for purposes of expropriation and purchase of real
property)
4) Duties and functions under the omnibus Election Code

Administrative and Technical Supervision of BLGF

1. The Bureau of Local Government Finance (BLGF) shall exercise administrative and technical supervision and
coordination over the treasury and assessment operations of local governments (Sec. 43 (b), E.O. No. 127). It shall
provide consultative services and technical assistance to local treasurers in the implementation of programs,
policies and 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. Administrative Supervision-
a. Act on Personnel movement of the local treasurers and assistant treasurer in terms of promotion,
designation, detail, secondment, transfer, retirement, extension of service
b. Act on leave of absence filed
c. Issuance of Travel Authority (Official or Personal)
d. Disciplinary action –act on complaints, investigate, file a formal charge
e. Conduct training programs, seminars, workshops and other allied activities for the improvement of the
administrative skills in the local treasury offices

3. 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;
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

Conduct of Local Treasury Operations Evaluation

The conduct of the local treasury operations evaluation is governed by the enhanced Manual for the
Evaluation of Local Treasury Operations (MELTO) to provide a more systematic and uniform set of evaluation
procedures that are supported and justified by existing laws, rules and regulations.

MELTO is a basic reference of the BLGF and its Regional Offices and the Provinces in the conduct of the
evaluation of treasury operations of local governments within their respective jurisdictions.

The BLGF Central Office shall conduct local treasury operations evaluation within Metro Manila.

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