Project Name: Budget Tracking for Transparent Accountable Governance in Mindanao or

BTTAG
Name: Bibing Mordeno, Executive Director
Name: Catherine Hamlin
What particular incident prompted you/ the organization to launch a program against
corruption?
Despite the various initiatives and focus given by agencies and other resource organizations,
Mindanao continues to be the most marginalized among the three island regions in the country,
where six out of the ten poorest regions are found. In the 1st Semester of 2012, the National
Statistical Coordination Board (NSCB) data shows that all the six regions in Mindanao belongs to
the top ten poorest regions in the country.
Balay Mindanaw Foundation Incorporated (BMFI) and many other CSOs/PS, have been engaging
LGUs in participatory local peace and development planning with the LGC, using the Millennium
Development Goals (MDGs) and Sustainable Integrated Area Development (SIAD), as key
frameworks. However, there is lack of substantial oversight to determine whether the approved
activities, projects and budgets are executed. There is a need to enhance wider civil society
participation and engagement in local governance, promote transparency and accountability in
the utilization of local government funds, and increase the access to, and accuracy of
government information: linking planning and budgeting.
The learning from BMFIs 17 years of experience in community-based peace and development
work and earlier involvement on the implementation of the USAID-funded Transparent
Accountable Governance (TAG) Project inspired us to partner with The Asia Foundation (TAF) to
engage in an initiative focused on local fiscal management, particularly tracking and monitoring
the utilization of the local budgets, conduct of budget analysis and evaluation, and budget
advocacy to influence local governments policies and programs related to budget planning,
spending, and accounting. The initiative was called Budget Tracking for Transparent Accountable
Governance in Mindanao or BTTAG.
Describe the program (goals, actions, start of implementation).
The project, which gives emphasis on both the LGU and CSOs (see Attachment 1 for list of LGU
and CSO partners) journey towards enhancing transparent accountable governance through
enhanced local budgeting, has three components: Budget Tracking, Capacity-building, and
Media and Policy Advocacy.
The projects main objective is to help institutionalize wider civil society participation and
engagement in local governance; promote transparency and accountability in the utilization of
local governance funds; and increase access to, or accuracy of government information.

Specifically, the project seeks to:

Develop a mechanism, tools and technologies in tracking local Budget Formulation

Spending and Accounting (BFSA);

Increase transparency and accountability of 20 Mindanao local government units

(province, city) in the formulation, authorization, utilization and accounting, and analysis of their
budgets;

Improve 20 Mindanao Civil Society Organizations access to local government fiscal

information, especially the budget;

Conduct policy dialogues among local partners using reports containing assessments
and recommendations on present BFSA; and,

Develop models of civil society: local government engagement in transparent and

accountable budget tracking.
Even before the formal start of the project implementation, a local area consultation and
ground-working for LGU and CSO partners was conducted by the Balay Mindanaw BTTAG Team.
The project partners were selected based on important considerations. The selection of the
twenty local government units in Mindanao was based on the following criteria: TAG 2 and 3
project areas, presence of CSOs, and strategic spread across regions and in Mindanao. The 20
CSOs were selected based on the following important considerations: previous partners of TAG
2 and 3, presence in the LGU, and willingness to undertake the initiative.
A parallel initiative to meet with the late Sec. Jesse M. Robredo of the Department of Interior
and Local Government (DILG) was also done to discuss and find ways to complement initiatives
in line with the present administrations policies. The project was well-received and supported
by Sec. Robredo and it was during this meeting that he commissioned one of the DILG Assistant
Secretaries to draft a circular regarding CSO participation in the budget process. The partnership
with DILG was even strengthened when both BMFI and TAF signed a Memorandum of
Agreement with the DILG (see Attachment 2).
Balay Mindanaw started to communicate and conduct actual area visits to the CSOs and LGUs
targeted for the project to get commitment for the project. Network members of MINCODE
were consulted and asked about their NGO members who are present in the twenty different
cities and provinces. The local government chief executives were also visited to inform and
orient them of the project. Since majority of them were participants to the TAG initiatives
before, many were supportive of the project. The courtesy visit was also for the Local Chief
Executive to assign and LGU focal person as counterpart of our CSO partners.

Trust and confidence-building was an important foundation for the implementation of the
project and it was stressed at the start that the initiative will be a partnership between the CSO
and LGU, and not a space to criticize each other and not offer solutions.

All of the 20 LGUs were visited by the CSO project officers and the BTTAG Team. Thirteen
(Maguindanao, Cotabato, Surigao, Butuan, Tacurong, Digos, General Santos, Dipolog, Pagadian,
Misamis Oriental, Gingoog, Ozamis, Oroquieta) LCEs were met by the Team and the partner CSO
during the first round of visit. For the seven LGUs (El Salvador, Sarangani, Marawi, Iligan,
Malaybalay, Davao, Panabo), the Team were met by their Budget Officer, Planning Coordinator,
and/or Administrative Officer. Most of the LCEs gave a positive response to engage in the
project although there were also some LCEs who were apprehensive for particular reasons.
Nine (9) LGUs have signed the Memorandum of Understanding (MOU). For the rest of the LGUs,
both the LCEs and CSOs believed that their partnership is sufficient, thus they dispensed with
the formal signing of the document.
Discuss how it involves others in the fight against corruption.
BTTAG is considered an innovative project since this is the first time where CSOs have engaged
the LGU in their budget process. A number of CSOs have been involved in the development and
planning process and in the different development councils and special bodies. But not many, if
not none, has yet been involved in the LGU fiscal management.
What have been the results so far, and how have the results been assessed?
Below is an analysis of the project vis-a-vis the objectives:
Objective 1: To develop a mechanism (tools and technologies) for local Budget Formulation,
Spending and Accountability tracking
Template
COA Commissioner Heidi Mendoza accompanied the implementers in devising a tool to monitor
local budget tracking. This was done during her session on budget execution and accountability
in the 2nd capacity-building training for the CSOs. The tool was later on developed by the team
with recommendations from other partners like The Asia Foundation (TAF) and the local
Department of Budget and Management of Northern Mindanao. This was further enhanced in
consultation with the CSOs during their cluster meetings. The first workshop conducted was
intended to evaluate the template. This is especially in the use of the tracking templates as a
mechanism to track the local budget process.
In terms of capturing the essential information needed, the CSOs said that all the necessary
information needed is captured in the template. The template is also easy to use and is very

much appreciated by some of the LGUs. They said they can also use this as an internal
monitoring tool or for Management Information System (MIS).
Content
There are portions in the template for monitoring the budget process that are not applicable to
all of the items in the template. Example of this is the extent of CSO participation. It was also
easy to monitor the compliance of LGUs on the Full Disclosure Circular since all the 14 required
documents were already listed in the template. This includes including the time when it is
supposed to be posted.
Some of the LGUs were fully compliant on the Full Disclosure Policy and were awarded with the
Seal of Good Housekeeping. Generally, the other LGUs were just partially compliant to the
circular since they only posted some of the required documents in the city/provincial hall.
They found it hard to acquire documents on the political party campaign documents of winning
candidates who were sworn into office. The COMELEC cannot produce such document. Not all
documents can also be accessed immediately as desired by the CSOs since there are times when
the person in charge in the LGU is not around. Availability of both the LGU and CSO does not
coincide. This is why the CSOs also noted that tracking the budget process requires focus and
full time attention since the CSO may have to be persistent in following up the LGU to get the
information and documents.
Data gathering
While the CSOs shared that using the templates and getting the necessary documents and
information were not an imposition to the LGUs since this was already agreed upon form the
start, they made sure they were observing proper protocols relating with the LGUs. Special
mentioned were the engagements with the accounting and treasury office.
CSOs shared that having established previous partnership with the LGU before BTTAG, like
project implementation of the Transparent Accountable Governance (TAG), were one of the
helpful factors in implementing BTTAG. Particularly on tracking the full disclosure of the LGUs,
the Memorandum Circular (MC) issued by the Department of Interior and Local Government
(DILG) was very helpful since the LGUs were forced to comply. The orientation given to the LGU
representatives also helped especially when an LGU Focal Person was already identified by the
local chief executive. They became the partners of the CSOs in the implementation, constantly
referring and keeping in touch with them. The partnership was found very helpful especially
during difficult periods of the tracking like dealing sometimes with difficulties in some
departments.

In terms of continued relationship/confidence-building, the CSOs shared that it is not enough to

visit the LGU just whenever information or document is needed. It is also important to do

informal visit or chika-chika especially with the different department heads. Like in the
case of IPHC, they see to it that they drop by the LGU whenever they are on their way to their
other projects that are implemented on the way or within the area.
Partnership document
The Memorandum of Understanding (MOU) is also an important factor in the journey. This is
because this document is brought by the CSOs whenever they initially visit appropriate
departments where information and or documents were needed. Some LGUs like General
Santos, Panabo and Tacurong thought the MOU would be unnecessary. The LCE expressed that
their commitment is enough to pursue the partnership. This is also to ensure that the project is
implemented immediately and avoid legal implications of signing an MOU since this will still be
deliberated by the local Sanggunian.
Capacity building
The two trainings given to the CSOs also enhanced their knowledge in understanding the
complex budget process and improved their skills in engaging the LGUs and tracking the process.
They felt, though, that the training was insufficient. They expressed their interest to have a
more deepened discussion on the budget execution phase which was facilitated by Ms. Heidi
Mendoza.
The Manual book on Local Budget Process distributed by the Department of Budget and
Management provided to all the CSOs was also an effective reading material. They referred to it
regularly especially when there is a need to understand a certain portion of the actual budget
process of the local government. The field visits of BMFI coordinators and clustered meetings or
collective sharing of experiences also helped the CSOs in terms of learning different strategies
from other CSOs.
In using the templates, the CSOs stressed the importance of having the right attitude in dealing
with the LGUs. Some LGUs are passive; they often prioritize their effort in complying with
tangible projects compared to BTTAG. Some department heads are also less accommodating.
This shows that local bureaucracies had different ways of supporting initiatives sanctioned by
the LCE. This is the reason where the CSOs pointed out that is important to have the right
attitude in dealing with the LGUs. They should observe proper LGU protocol. CSOs have to avoid
becoming imposive, insisting, and fault-finding. Instead, CSOs tried so much to handle the
delicate balance of being a fault founder or watchdog instead of the emphasized journey among
friendly institutions. They stress on the positive side of the monitoring: like pooling of
knowledge in terms of what is for the common good and increasing the transparency,
accountability, and credibility of the LGU.
Objective 2: To increase the transparency and accountability of 20 Mindanao LGUs (province,
city) in the formulation, authorization, utilization and accounting, and analysis of their budgets

Institutionalized Emerging relations

Seventeen months after BTTAG implementation, CSOs are now allowed to join the LFC in their
budget deliberation. Although this case does not hold true to all, CSOs like KPMFI, SPECTRUM,
IPHC and CESCOD were able to actively participate in the LFC discussions. In fact in Dipolog,
because of CESCODs participation in the LFC meeting, there was a 20% re-alignment of the
budget for the Day Care Center workers as lobbied by CESCOD. The LFC saw the issues were
valid and therefore approved the re-alignment.
Journeyed budget formulation, authorization, and execution
At present, there is constant communication and updating between the LGU (particularly the
Focal Person) and the CSO partner from the start of budget formulation, to authorization, and
up to the execution. The LGU has made it a point to inform and or invite the CSO partner in their
other activities apart from BTTAG. KPMFI was invited by the Provincial Government of Misamis
Oriental to attend in their training on procurement. Documents are now more accessible.
Although on the side of the COA, financial audit result and initial findings are still unavailable
unless the LCE would allow them to divulge it. This is in the towing the spirit of confidentiality
and sensitivity between the auditor and the client LGU. Though they ultimately become
available after the exit conference and the LGU have complied with all the comments and
findings even in the internet.
LCE championing the CSOs
BTTAG has raised the LGUs awareness on CSO participation in local governance. IPHC shared
that Mayor Silvosas participation in one of the budget dialogues of BTTAG created a very
positive impact on him in relation to CSO partnership. He has fully appreciated the significance
of the initiative and has never failed to mention this in his speeches and engagements.
The Budget Officer of Misamis Oriental, expressed that the existence of BTTAG has helped the
province in terms of making everybody in the bureaucracy become involved in the budget
process. The success lies in the heightened consciousness and interest of everyone as instigated
by BTTAG partnership. The province had been into this direction of raising transparency and
participation in the local budget process. BTTAG complemented the effort making the local
government more resolved and hastened the process of transparency, accountability and
participation in the local budget process.

Objective 3: To improve 17 Mindanao civil society organizations access to local government

fiscal information, especially the budget
Capacity building

The CSOs shared that the necessary preparatory activities and capacity-building has helped
them in implementing the budget tracking project. For different reasons, four CSOs
(MARADECA, XAES, CBCS and MSU-IIT Coop) out of the 17 CSOs covering four LGUs were unable
to fully engage their LGUs in the total budget process. The other fourteen CSOs expressed they
performed fairly well in terms of participation in the local budget process and in accessing
information and documents. The challenges and limitations were also very pronounced. This is
the first though where the CSOs that includes Balay Mindanaw, had directly engaged the LGUs
in their local budget process.
LGU engagement
The CSOs had formally engaged the LGU bureaucracy by visiting the LCE and some signed a
memorandum of understanding. The LCEs have signified interest to support the partnership.
Only one mayor has signified to defer participation. The go signal from the LCE became the
source trigger in initiating contacts inside the local bureaucracy. In cases where the LCE have
assigned a focal person, the task was made easier. Four major offices have been the constant
source of information and engagement. These are the Budget Office, Department of Interior and
Local Government, Local Planning and Development Office, and the Office of the LCE.
In the entire budget process, CSDO shared the easiest was in tracking the small transactions or
budget items in the 20% development fund. It is a little more difficult to track big projects with
big allocations. There are factors that determine the complexity of the process that sometimes
the CSOs were unaware of.
The CSOs level of success is characterized by: 1. Relationship with the LGU; 2. Access to
documents and information; 3. Participation in local budget process, public hearing, and in
special bodies, and; 4. Effective oversight function on full disclosure. In the local government
budget, participation in budget hearings and public consultations, and CSOs oversight on the
LGUs budget and compliance with the Full Disclosure Policy (FDP).
The local bureaucracy asked CSOs to produce documents showing the LCEs consent. This was
asked even if the LCE have given his/her go signal to engage the CSO. Others were compelled to
undergo accreditation process before being considered legitimate to engage budget
tracking and monitoring with the LGUs. This is being experienced by CBCS in the province of
Maguindanao. While accreditation is required for membership in local development councils it is
not a pre-requisite for CSO or the citizenry to engage in local budget tracking.
The provincial governor had sent different groups of personnel participating in the activities of
BTTAG. He has identified a focal person for the initiative. The inconsistency of the personnel
added to the challenging work of CBCS. The governor himself and some key officials had to
regularly travel also since the Maguindanao Massacre is still actively heard in the court in
Manila. Though martial law had been lifted, the intense security and safety undertaking are very
imminent in the province. This had taken a lot of attention from the local bureaucracy who

wants to build a new Maguindanao. The timing of the project during this intense period of the
province is worth looking into, say the provincial team members.
The Cotabato City experience was marred by major external factors. First is the strong partisan
dynamics among the local elected officials. One of the major issues was on public finance
information which made the local bureaucracy more hesitant to move and participate in the
local budget tracking partnership. The second factor is the legal case existing between parties.
The legal case has stopped other local officials to participate with the initiatives. The CSO staff
was made to make formal request every time information is needed or an activity needs to be
undertaken. The Legal officer of the city then looks at all the request and do appropriate action.
The other external factor that has affected the Maguindanao and the Cotabato City engagement
is the postponement of the local ARMM election. This has pushed the local CSOs in supporting
the move for to reform ARMM highlighted also by the Maguindanao Massacre. The local CSO
partner is very active in Human Rights advocacy and the time being devoted to the initiative had
been compromised.
Objective 4: To Conduct Policy Dialogues among local partners using reports containing
assessments and recommendations on present Budget Formulation, Spending, and Accounting
Although a second policy dialogue is still to be conducted, the first policy dialogue became an
effective venue for both the CSOs and LGUs to discuss improvements needed in the budget
process. The only limitation is that most of the LCEs were unable to join the dialogue even
during the follow-up activity last May 2011 for the refinement of the position paper presented
last January 2011.
While there is a need to prioritize which among the many recommendations that came out will
be pursued, a meeting with DILG was set to discuss the inclusion of transparency in the budget
process (meaning CSO participation) in their indicator for Seal of Good Housekeeping (SGH) and
in their Local Government Performance Management System (LGPMS).
Objective 5: To develop models of civil society: local government engagement in transparent
and accountable budget tracking
The project is successful in terms of building mutual trust between the LGUs and CSOs. The trust
that has been built should be continued in order to ensure participation, accountability,
responsiveness and transparency of the LGU in their local budget process. For example,
SPECTRUM had been made part of the expanded Local Finance Committee of the LGU. CSDO
and the LGU planned to let other local CSOs participate in this initiative by transferring the
technology to them and to address the issue on sustaining the initiative. CESCOD have been
accompanying the LGU LCE in their advocacy on budget tracking at the RDC level. IPHC have
agreed with the City Development and Planning Office to allocate funds for the strengthening of
CSOs or the CCTAG in relation to their participation to development planning and budget

tracking. They will also maximize the CCTAG thru capacity development to continue the BTTAG
initiative in the city.
On the Performance Monitoring Matrix
The level of success of the CSOs was determined by looking into their access in the local
government budget, participation in budget hearings and public consultations, and LGUs
compliance with the Full Disclosure Policy (FDP).
Of the 17 CSOs, four CSOs were not able to get access to the any of the documents related to
LGU budget. On their participation in the budget hearings and public consultations, the same
set of CSOs in the first indicator plus MSU-IIT (Iligan) were not able to observe or participate in
the hearings and consultations. Six CSOs, namely CSDO-SC, PCDFI, KPMFI, MINCODE, BDSI and
MOFECO were invited to observe (moderately successful) and another six CSOs were invited to
observe and were able to participate in the processes.
Of the twenty partner LGUs, only Marawi is not a recipient of the Seal of Good Housekeeping
Award. But based on the CSO assessment, only eight LGUs were fully compliant of the Full
Disclosure policy. This means that they are posting the twelve required documents either in
conspicuous places, in the website and in print media or newsletters. These LGUs are Sarangani,
Butuan, Tacurong, Panabo, Surigao, Davao, Digos and Ozamis. Seven LGUs (Iligan, Dipolog,
General Santos, Oroquieta, Misamis Oriental, El Salvador and Gingoog) were partially compliant,
meaning they did not post all of the required documents.
How can the program be replicated by other groups or individuals?
BTTAG is a very replicable initiative as long as CSOs ensure that they are accredited at the LGU
that they would like to engage with. In fact, even if the BTTAG project has ended, BMFI and
some of the CSO partners already had plans to replicate and sustain the initiative that has been
started.
Inspired and building on the experience and lessons learned from the BTTAG Project, BMFI
replicated the experience in two municipalities and five barangays. These municipalities are
located in the northeastern and south central part of Mindanao which comprise a diverse group
of communities and are actual violent conflict affected areas. This will also be the opportunity
for BMFI to do the actual tracking of the budget process we were more on the Project
Management in the BTTAG project.
The International Budget Partnership got interested in the BTTAG project and after learning that
it will only be until December 2011 (originally), they committed to provide support in order for
BMFI to complete the budget work at all levels of the local governance: from the barangay to
the province. The project is called Budget Work for Participatory Accountable Responsive
Transparent Nurturing Effective / Efficient and Rule-of-Law-Sensitive Local Governance in
Mindanao or Budget Work for PARTNER LG in Mindanao.

BMFI intends to help enhance local budget work at the municipal and barangay level in Aleosan,
North Cotabato and Cagwait Surigao del Sur by capacitating the local government units and the
constituent citizens on the local budget process, making the public informed, more responsible
and more engaging in governments budget processes: from budget preparation, authorization,
review, execution and accountability through the production of documented evidence such as
case studies, impact assessment on the implementation of some basic policies such as the Full
Disclosure and Procurement Policies.
Particularly in the Municipality of Cagwait, the participation of CSOs in the Project Monitoring
Committee (PMC) and Development Councils on budget tracking both at the barangay and
municipal level resulted to the conduct of the 1st CSO Congress in the municipality. Various
CSOs and private organizations gathered to discuss issues affecting CSO participation in the LGU.
The congress also became a venue for discussing how CSO participation can be institutionalized
through the creation of a body for them to organize themselves. This led to the drafting of a
legislation ordinance for the creation of the Cagwait Citizens Constituent Council or 4Cs
(Attachment 3). During the congress, Mario Bernales of Municipal Agriculture and Fisheries
Council expressed, The participation of the CSOs in the budget process and monitoring of
development projects will bring more confidence of the people to the LGU. To be open and to
involve people in monitoring will be a gauge for the LGU and private citizens to a more
meaningful and sustainable partnership in governance. This is the first time this happened.
Both LGU and CSO partners have also decided to replicate the initiative even to the barangay
level: PAGLAUM Foundation will be replicating BTTAG at the provincial level; IPHC in 19
barangays in New Corella, Davao del Norte; Reach Foundation and their network, AGTASI or
Anti-Graft and Transparency Advocates of Surigao, in the municipalities of Claver, Bacuag and
Dapa; and, SPECTRUM in 140 barangays in 7 municipalities in Sarangani Province.
With BTTAG, our partnership with the Department of Interior and Local Government (DILG) was
even more strengthened, with the same goal of pursuing transparent accountable governance.
Although it was not clearly stated, the BTTAG initiative may have influenced Secretary Robredo
of DILG to issue the Full Disclosure Circular which requires the cities, municipalities and
provinces to fully disclose at least twelve financial documents.
During the first meeting between TAF, DILG and BMFI where Secretary Robredo was informed of
the initiative and seeking his support in the implementation, he mentioned that he will ask DILG
Asec. Acosta to formulate a circular related to the initiative. The said circular was supposed to
be included in our communication for the LGUs prior to the conduct of the BTTAG Project
Orientation. Although we were not able to attach the circular in our communication to the LCEs,
DILG passed out a memorandum on August 31, 2010 requiring the LGUs to fully disclose local
budget and finances and bids and public offerings.