BLGF’s ROLE

IN THE
ADMINISTRATIVE GOVERNANCE
OF LOCAL TREASURY
OPERATIONS
The 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.
Legal Basis:
Executive Order No. 127 January 30, 1987
“REORGANIZING THE MINISTRY OF FINANCE”

Executive Order No. 292 July 25, 1987

"INSTITUTING THE ADMINISTRATIVE CODE OF 1987“
 Mandate
• Assist in formulating policies on local government revenue
administration and fund management
• Exercise administrative, technical supervision and
coordination over local treasury and assessment
operations

• Develop, implement and monitor plans and programs for the

improvement of resource management system, collection
enforcement mechanisms and availment of credit financing
• Provide consultative services and technical assistance on local
taxation, real property assessment and other related matters
• Supervise the 15 Regional Offices
 Vision /Mission
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
• To support national development
programs and priorities.

• To provide administrative and technical

support to local treasury and
assessment offices.
 GOALS
• To provide consultative/technical
assistance to local government units for
them to attain financial stability and
growth.
• To enable LGUs to deliver essential
services more efficiently and
effectively.
 GOALS
• To continuously develop effective and
responsive organizational internal
processes.

• To sustainably empower BLGF

employees.
BLGF STRATEGY MAP 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.

Outcome: LGU Fiscal Sustainability

MFO : Regulation of LGU Financial Management
KRAs : Policy Development Technical Assistance LGU Financial Performance M&E
S Treasury LGU Revenue Capacity
T Development
R and Generation Compliance Accountability
and and Reviews and
A Assessment Professionaliza-
T Resource Discipline
E Policy tion of the
Mobilization Treasury and
G Reforms
I Programs Assessment
E
and
Services
S Services
INSTITUTIONAL STRENGTHENING
Organizational Development, HR Systems, IT Systems, Knowledge Management,
Performance Management, Rewards and Recognition, Good Governance
E
N LGU Financial
V S
Performance Policy U
I
Monitoring Development P
R
O and P
N Evaluation O
M R
LGU Fiscal T
E
N Sustainability
T M
A E
L C
Regulation of LGU H
I Financial Management A
N N
F I
L S
U
Technical M
E Assistance S
N
C
E Attaining LGU Fiscal Sustainability
 Organizational Structure
Office of the
Executive Director

Local Government
Administrative, Financial Local Fiscal Policy
Legal Service Units Operations
and Management Service Service
Service

Financial and Policy, Planning, Local Assessment

Management Division Legal Division
Programming and Operations Division
Standards Division

Administrative Division Internal Affairs Local Treasury

Division Local Financial Data Operations Division
Analysis Division
Information Systems
Management Division Project Execution and
LGU Debt Monitoring Management Division
& Evaluation Division

15 Regional Capacity Building

Offices Division
Plantilla of Personnel

No. of Filled Positions: 269

Based on the 2014 Approved RatPlan
No. of Unfilled Positions: 166
No. of Itemized Positions: 435
Professionalization
of Treasurers Level Muni City Prov
Level 3 1st Special 1st
Class Cities, Class
• Adoption of 3-level certification 1st Class,
system: SEAL Program HUCs
(Standardized Examination and Level 2 2nd - 3rd Class LGUs
Assessment for Local Treasury Level 1 Entry point for all LGUs
Operations) regardless of income
• Level 1 – Basic Competency classification; Must for
4th-6th Class LGUs; Basis
• Level 2 – Intermediate Competency for all designation and
• Level 3 – Advanced Competency appointment

• Aims to improve DOF/BLGF Results of the 2015 Level 1 Exams

selection and appointment No. of Examinees 2,994
process to ensure high level of Highest Score 141
competency/fitness of treasurers Lowest Score 17
• Minimize undue political pressure Cut-Off/Passing
95
to the Secretary of Finance as Score

appointing authority BCLTE Certified 494 or 16.5%

2,500 or
• Exam administration by CSC Needs Improvement
83.5%
Professionalization
of Treasurers
• Performance Standards of
Local Treasurers and Assistant
Treasurers (DO No. 06-2015)
• Sets the operational and
competency benchmarks to
institutionalize performance-based
culture in local treasury operations
• Performance appraisal system for
local treasurers/assistants
• Basis for personnel action
• Harmonization with the BLGF-
SPMS
• Provision of focused trainings
by BLGF; partnership with HEIs
Weight Indicators
Local collection efficiency
Stable and reliable local
revenue growth
Optimum fund management
Institution of administrative
and judicial remedies
70%
Reportorial compliance with
DOF requirements
Compliance with COA rules and
regulations
Cost effective local revenue
collection
Code of conduct and ethical
standards
Capacity building and
professional development
30%
Professional recognitions and
achievements
Office management tools and
support system/s
Use of non-traditional
collection strategies
Continuing Professional
Development of Assessors
• BLGF is accredited by PRC as ‘Institutional
Continuing Professional Education
Provider’
• 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)
• Trainings include:
• Philippine Valuation Standards
• Mass Appraisal
• Real Property Tax Administration
• General Revision of Property Assessments, etc.
 Authority of the Secretary of Finance to Appoint
Local Treasurer and Assistant 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 Treasurer shall be

optional for provincial, city and municipal governments
(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)
Authority of the Secretary of Finance to Appoint Local
Treasurer and Assistant Treasurer.
x x x

C. 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)

D. 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).
Qualifications of a Local Treasurer and Assistant
Treasurer

A. 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;
 Qualifications of a Local Treasurer and Assistant
Treasurer

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
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.

A. 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)
 Automatic Succession of the Assistant
Provincial/City/Municipal Treasurer as
Acting/OIC/ICOProvincial/City/Municipal Treasurer.

B. 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.
 Automatic Succession of the Assistant
Provincial/City/Municipal Treasurer as
Acting/OIC/ICOProvincial/City/Municipal Treasurer.

C. 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.

D. 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

A. A detail is the movement of an employee from one

department or agency to another, which is temporary in
nature and does not involve a reduction in rank, status or
salary and does not require the issuance of another
appointment.

B. The employee detailed receives his/her salary only from

his/her mother unit/agency.
 Detail or Temporary Assignment of Local Treasurers
and Assistant Local Treasurers.

C. Guidelines to be observed regarding the detail or temporary

assignment of Local Treasurers and Assistant Local Treasurers:

1. 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.

2. 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)
Detail or Temporary Assignment of Local Treasurers
and Assistant Local Treasurers.

3. 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:
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 of 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;
 Powers and Duties of Local Treasurer and Assistant
Treasurer

xxx
e) 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;

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.
 Powers and Duties of Local Treasurer and Assistant
Treasurer

k) Specific Functions:
1. Certify as to the Availability of Funds
2. Implement Tax Collection and Enforcement Program
3. Prepare and Submit Reports
4. Certify RPT Delinquencies Remaining Uncollected
5. Examine the Books of Accounts and Pertinent Records
of Businessmen
6. Submit Certified Statement Covering Income and
Expenditures
7. Issue a Certified Statement Covering Actual Income
 Powers and Duties of Local Treasurer and Assistant
Treasurer

xxx
k) Specific Functions:
8. Keep full sets of secondary standards for use in the
Testing of Weights and Measures
9. Register in a Book All Branded and Counter Branded
Animals

10. 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
 Powers and Duties of Local Treasurer and Assistant
Treasurer
xxx
k) Specific Functions:
11. Attend Sessions of the Sanggunian

12. Exercise Such Other Powers and Functions and

Perform Such Other Duties and Responsibilities
12.1 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.
12.2 Deputies of the National Government Alien
Registration Fees.
 Powers and Duties of Local Treasurer and Assistant
Treasurer
xxx
k) Specific Functions:
12.3 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)

12.4 Duties and functions under the omnibus

Election Code
 Administrative and Technical Supervision of BLGF

a) 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.
 Administrative and Technical Supervision of BLGF

b) Administrative Supervision-
1. Act on Personnel movement of the local treasurers and
assistant treasurer in terms of promotion, designation,
detail, secondment , transfer, retirement, extension of
service

2. Act on leave of absence filed

3. Issuance of Travel Authority (Official or Personal)

4. Disciplinary action –act on complaints, investigate, file a

formal charge

5. Conduct training programs, seminars, workshops and

other allied activities for the improvement of the
administrative skills in the local treasury offices
 Administrative and Technical Supervision of BLGF

c) Technical Supervision
1. 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;

2. Coordinate the plans, programs and activities of local

treasury and assessment offices in the conduct of tax
collection drives and tax information and education
campaigns;

3. Conduct regional training programs, seminars, workshops

and other allied activities for the improvement of the
technical skills in the local treasury offices;
Administrative and Technical Supervision of BLGF

4. Monitor and determine the efficiency and effectiveness of the

internal control system of the office of the Provincial/City/Municipal
Treasurer;

5. Monitor the performance of revenue generation in RPT, Business

Tax and non-tax revenues;

6. Conduct revenue and treasury operations evaluation to determine

the compliance by Local Treasurers with applicable laws, rules and
regulations;

7. Monitor the implementation by LGUs of national and local tax

ordinances and tax measures;

8. 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. I
Bureau of Local Government Finance