LOCAL GOVERNMENT

FINANCIAL PERFORMANCE
MONITORING SYSTEM
(LGFPMS)
LOCAL GOVERNMENT FINANCIAL
PERFORMANCE MONITORING SYSTEM
(LGFPMS)
BASIS: BLGF Memorandum Circular No.
16-2015 dated 19 June 2015 (Local Public
Financial Management Tools for the Electronic
Statement of Receipts and Expenditures)
BLGF implementation of the Manual for the Local
Public Financial Management Tools for the
electronic Statement of Receipts and
Expenditure
Objective
To assess individual LGU performance

To provide active advisory to LGUs

To support LGU credit assessment

To support policy formulation

Category
Revenue Indicators (Revenue Generation
Capacity)
Expenditure Indicators (Expenditures Rigidity)
Debt Indicators (Debt Carrying Capacity of LGU)

Overall Financial Indicators (Financial

Management Capacity)
 INDICATORS

REVENUE LEVEL Total Revenues as compared to the average

value for the LGU income class to which
the LGU belongs.
FORMULA: TOTAL REVENUES
Real Property Tax (General Fund + SEF) + Tax on Business + Other Taxes +
Regulatory Fees + Service/User Charges + Receipts from Economic Enterprises +
Other Receipts + Internal Revenue Allotment + Other Shares from National Tax
Collection + Inter-Local Transfer + Extraordinary Receipts

BENCHMARK: LGU revenue > LGU income class average

 INDICATORS

EXAMPLE:
REGULATORY FEES RECEIPTS FROM OTHER RECEIPTS
INCOME REAL PROPERTY TAX SERVICE/USER
LGU NAME TAX ON BUSINESS OTHER TAXES (PERMITS AND ECONOMIC (OTHER GENERAL
CLASS (BASIC + SEF) CHARGES
LICENSE) ENTERPRISES INCOME)

MANILA CITY Special 4,063,526,616.83 3,535,684,363.54 600,698,873.49 286,509,176.39

418,134,095.88 434,217,729.62 43,154,098.80

QUEZON CITY Special 3,437,901,433.23 8,638,307,222.21 748,299,731.18 493,789,745.04

769,724,947.92 194,165,681.49 252,527,968.25

TOTAL SHARES
INCOME INTERNAL REVENUE INTER-LOCAL EXTRAORDINARY TOTAL
LGU NAME FROM NATIONAL BENCHMARK RATING
CLASS ALLOTMENT (TOTAL) TRANSFER RECEIPTS REVENUE
TAX COLLECTION

MANILA CITY Special 2,416,221,197.00 - - 15,250,926,243.26 FAILED

177,098,330.42 11,975,244,481.97

QUEZON CITY Special 3,937,116,295.00 - - 15,250,926,243.26 PASSED

54,774,980.22 18,526,608,004.54
 INDICATORS

REVENUE GROWTH The trend in revenue across time

FORMULA:
Total RevenuesYr1 – Total RevenuesYr0 x 100
Total RevenuesYr0

BENCHMARK:
The average annual % increase in LGU revenues > Annual
inflation rate + Annual population growth rate Philippine Statistics Authority
 INDICATORS

EXAMPLE:

ANNUAL ANNUAL
INCOME TOTAL REVENUE TOTAL REVENUE REVENUE
LGU NAME INFLATION POPULATION BENCHMARK RATING
CLASS (2015) (2016) GROWTH
RATE GROWTH RATE

MANILA CITY Special -2% 1.8% 1.7% 3.5% FAILED

12,186,530,612.14 11,975,244,481.97

QUEZON CITY Special 7% 1.8% 1.7% 3.5% PASSED

17,324,689,268.32 18,526,608,004.54

Annual Population Growth Annual Inflation Rate (2016)

Rate (2016) = 1.7 = 1.8
 INDICATORS

PER CAPITA LOCALLY Amount of revenues under

SOURCED REVENUE + SEF LGU control and oversight on a
per capita basis
FORMULA:
Locally Sourced Revenue (LSR) + SEF
Population LSR = Real Property Tax (General Fund) + Tax on Business
+ Other Taxes + Regulatory Fees + Service/User Charges +
Receipts from Economic Enterprises

BENCHMARK:
Per capita locally sourced revenue + SEF > average for the
LGU income class to which the LGU belongs
 INDICATORS

EXAMPLE:
2015 POPULATION SPECIAL REGULATORY RECEIPTS FROM
INCOME REAL PROPERTY SERVICE/USER
LGU NAME (SOURCE: PSA) EDUCATION FUND TAX ON BUSINESS OTHER TAXES FEES (PERMITS ECONOMIC
CLASS TAX (BASIC) CHARGES
(SEF) AND LICENSE) ENTERPRISES

MANILA CITY Special

1,780,148.00 2,274,362,970.12 1,789,163,646.71 3,535,684,363.54 418,134,095.88 600,698,873.49 434,217,729.62 286,509,176.39

QUEZON CITY Special

2,936,116.00 2,016,346,266.14 1,421,555,167.09 8,638,307,222.21 769,724,947.92 748,299,731.18 194,165,681.49 493,789,745.04

OTHER RECEIPTS PER CAPITA

LOCALLY LOCALLY PER CAPITA LOCALLY
INCOME (OTHER LOCALLY
LGU NAME SOURCED SOURCED SOURCED REVENUE + BENCHMARK RATING
CLASS GENERAL SOURCED
REVENUE REVENUE + SEF SEF
INCOME) REVENUE

MANILA CITY Special 4240.999742 PASSED

43,154,098.80 7,549,607,209.04 9,338,770,855.75 5,246.06 5,055.19

QUEZON CITY Special 4380.151736 FAILED

252,527,968.25 12,860,633,593.98 14,282,188,761.07 4,864.31 5,055.19
 INDICATORS

PER CAPITA GROWTH IN Growth in the amount of

LOCALLY SOURCED revenues under LGU control
on a per capita basis
REVENUE
FORMULA:
LSR per CapitaYr1 – LSR per CapitaYr0 x 100
LSR per CapitaYr0

BENCHMARK:
Growth in Locally Sourced Revenue per Capita > average for
the LGU income class to which the LGU belongs
 INDICATORS

EXAMPLE:

PER CAPITA
LOCALLY SOURCED LOCALLY SOURCED GROWTH IN
INCOME
LGU NAME REVENUE REVENUE LOCALLY BENCHMARK RATING
CLASS
(2015) (2016) SOURCED
REVENUE (LSR)

MANILA CITY Special 7,609,499,733.98 7,549,607,209.04 -1% 3% FAILED

QUEZON CITY Special 12,001,691,385.09 12,860,633,593.98 7% 3% PASSED

 INDICATORS

% LOCALLY SOURCED The share of revenues that are

REVENUES TO TOTAL LGU under LGU control and results
REVENUE from local economic activity

FORMULA:
Locally Sourced Revenues x 100
Total Revenues
BENCHMARK:
% Share of locally sourced revenue to total LGU revenue >
average share for the LGU income class to which the LGU
belongs
 INDICATORS

EXAMPLE:
LOCALLY
SOURCED
INCOME LOCALLY SOURCED
LGU NAME TOTAL REVENUE REVENUES TO BENCHMARK RATING
CLASS REVENUE
TOTAL LGU
REVENUE

MANILA CITY Special 7,549,607,209.04 63% 66% FAILED

11,975,244,481.97

QUEZON CITY Special 12,860,633,593.98 69% 66% PASSED

18,526,608,004.54
 INDICATORS

% ANNUAL REGULAR INCOME % Annual Regular

(ARI) TO TOTAL REVENUE
FORMULA:
Annual Regular Income x 100
Total Revenues
Income to Total Revenue
ARI = Real Property Tax (General Fund) + Tax on
Business + Other Taxes + Regulatory Fees +
Service/User Charges + Receipts from Economic
Enterprises + Internal Revenue Allotment (Current
Year) + Other Shares from National Tax Collection
+ Interest Income

BENCHMARK:
% Share of recurring revenue to total LGU revenue > average
share for the LGU income class to which the LGU belongs
 INDICATORS

EXAMPLE:
OTHER
RECEIPTS
RECEIPTS
REGULATORY (OTHER
INCOME REAL PROPERTY TAX ON SERVICE/USER FROM
LGU NAME OTHER TAXES FEES (PERMITS GENERAL
CLASS TAX (BASIC) BUSINESS CHARGES ECONOMIC
AND LICENSE) INCOME)
ENTERPRISES
INTEREST
INCOME

MANILA CITY Special 600,698,873.49

2,274,362,970.12 3,535,684,363.54 418,134,095.88 434,217,729.62 286,509,176.39 12,038,013.61

QUEZON CITY Special 748,299,731.18

2,016,346,266.14 8,638,307,222.21 769,724,947.92 194,165,681.49 493,789,745.04 205,805,598.91

INTERNAL % ANNUAL
TOTAL SHARES ANNUAL
INCOME REVENUE REGULAR
LGU NAME FROM NATIONAL TOTAL REVENUE REGULAR RATING
CLASS ALLOTMENT INCOME TO BENCHMARK
TAX COLLECTION INCOME
(CURRENT YEAR) TOTAL REVENUE

MANILA CITY Special 85% 88% FAILED

2,416,221,197.00 177,098,330.42 11,975,244,481.97 10,154,964,750.07

QUEZON CITY Special 92% 88% PASSED

3,937,116,295.00 54,774,980.22 18,526,608,004.54 17,058,330,468.11
 INDICATORS

RATIO OF TOTAL REVENUE

The full cost of collecting a
OFFICE OPERATIONS COST peso of revenues
(TROOC) TO LOCALLY
TROOC = Ps and
SOURCED REVENUES + SEF MOOE of the LGUs
Assessor’s Office + PS
and MOOE of LGUs
FORMULA: Treasurer’s Office

TROOC x 100
LSR + SEF
BENCHMARK:
TROOC < average for the LGU income class to which the LGU
belongs
 INDICATORS

EXAMPLE:
PS AMOUNT MOOE AMOUNT
INCOME TOTAL MOOE
LGU NAME TOTAL PS AMOUNT
CLASS Office of the Office of the Office of the Office of the AMOUNT
Treasurer Assessor Treasurer Assessor

MANILA CITY Special 129,162,706.06 53,339,124.27 182,501,830.33 49,637,181.83

46,869,999.40 2,767,182.43
QUEZON CITY Special 124,399,645.73 67,503,963.82 191,903,609.55 75,402,102.43
64,378,812.36 11,023,290.07

RATIO OF TOTAL REVENUE

OFFICE OPERATIONS COST
PS + MOOE BENCHMARK RATING
LGU NAME INCOME CLASS (TROOC) TO LOCALLY SOURCED
AMOUNT 2016 2016
REVENUE + SEF
2016

MANILA CITY Special 232,139,012.16 2.4% 2.2% FAILED

QUEZON CITY Special 1.9% 2.2% PASSED

267,305,711.98
 INDICATORS

% of current RPT collected within

REAL PROPERTY TAX the year to the total RPT due for
ACCOMPLISHMENT RATE the year as estimated from the
assessed value of taxable real
(RPTAR)
properties
FORMULA:
Actual RPT Collections (GF + SEF) x 100 Actual Real Property Tax Collection =
Real Property Tax Collection (GF + SEF)
Targeted Real Property Tax Collection =
Targeted RPT Collections (GF + SEF) Real Property Tax Collectibles – Net of
Restriction (GF + SEF)

BENCHMARK:
80% of Total Current Collectibles and 35% Cumulative Five-Year
Delinquencies
 INDICATORS

EXAMPLE:

REAL PROPERTY TAX

REAL PROPERTY TAX REAL PROPERTY
LGU NAME ACCOMPLISHMENT BENCHMARK RATING
TARGET TAX (BASIC + SEF)
RATE (RPTAR)

MANILA CITY 5,635,019,918.11 4,063,526,616.83 72% 85% FAILED

QUEZON CITY 4,931,640,999.65 3,437,901,433.23 70% 85% FAILED

 INDICATORS

TOTAL EXPENDITURES Average amount spent by LGU

PER CAPITA per constituent
FORMULA: Total Expenditures = Total General Fund (GF), Special
Education Fund (SEF) and Trust Fund (TF) Current
Total Expenditures Operating Expenditures (PS + MOOE + FE) + Total
General Fund (GF), Special Education Fund (SEF) and
Population Trust Fund (TF) Non-Operating Expenditures (Capital
Outlay)

BENCHMARK:
Per capita total LGU expenditures > average for the LGU
income class to which the LGU belongs
 INDICATORS

EXAMPLE:

2015 POPULATION TOTAL

INCOME TOTAL
LGU NAME (SOURCE: PSA) EXPENDITURES BENCHMARK RATING
CLASS EXPENDITURES
PER CAPITA

MANILA CITY Special 1,780,148.00 9,870,708,854.30 PASSED

5,544.88 5,266.17

QUEZON CITY Special 2,936,116.00 14,643,761,505.98 FAILED

4,987.46 5,266.17
 INDICATORS

PERSONAL SERVICES The ratio of LGU expenditures for personal

services in the General Fund to Annual
EXPENDITURES RATIO Regular Income of the LGU in the next
CODAL preceding year
FORMULA:
PSE General Fundt x 100
ARIt+1
BENCHMARK:
PSER < 45% for 1st to 3rd income class LGUs and 55% for 4th
or lower income class LGUs and should exhibit a decreasing
trend
 INDICATORS

EXAMPLE:

PERSONAL
ANNUAL REGULAR SERVICES
INCOME ACTUAL PS
LGU NAME INCOME EXPENDITURES BENCHMARK RATING
CLASS AMOUNT
(2014) RATIO CODAL
(PSERC)
MANILA CITY Special 3,676,230,831.39 41% < 45% PASSED
10,154,964,750.07

QUEZON CITY Special 2,424,946,608.17 16% < 45% PASSED

17,058,330,468.11
 INDICATORS

The ratio of LGU expenditures for

TOTAL PERSONAL personal services to total LGU
SERVICES EXPENDITURES expenditures

RATIO (TPSER) Total Personal Services Expenditures =

Personal Services Expenditures General
Fund + Trust Fund + Special Education

FORMULA: Fund (SEF)

Total Personal Services Expenditures x 100

Total Expenditures
BENCHMARK:
PSERT < average for the LGU income class to which the LGU
belongs and should be decreasing
 INDICATORS

EXAMPLE:

PERSONAL
SERVICES
INCOME TOTAL ACTUAL PS
LGU NAME EXPENDITURES BENCHMARK RATING
CLASS EXPENDITURES AMOUNT
RATIO CODAL
(PSERC)

MANILA CITY Special 862,138,853.28 429,899,851.34 50% 37% FAILED

QUEZON CITY Special 1,284,286,896.38 378,282,848.92 29% 37% PASSED

 INDICATORS

The ratio of LGU total debt

TOTAL DEBT SERVICE
service expenditures to LGU
EXPENDITURE RATIO (DSER) total expenditures
FORMULA: Total Debt Service Expenditures =
Debt Service (FE) (Interest Expense
Total Debt Service Expenditures x 100 & Other Charges) + Debt Service
(Principal Cost) (GF + TF + SEF)

Total Expenditures

BENCHMARK:
DSER < average for the LGU income class to which the LGU
belongs and should be decreasing
 INDICATORS

EXAMPLE:

TOTAL DEBT
INCOME TOTAL SERVICE
LGU NAME DEBT SERVICE BENCHMARK RATING
CLASS EXPENDITURES EXPENDITURE
RATIO (DSER)

MANILA CITY Special 862,138,853.28 76,799,509.27 1% 0% FAILED

QUEZON CITY Special 1,284,286,896.38 - 0% 0% PASSED

 INDICATORS

SOCIAL SERVICES The ratio of LGU social

EXPENDITURE RATIO (SSER) expenditures to total LGU
expenditures
FORMULA: Social Services Expenditures =
Education, Culture &
Social Services Expenditures x 100 Sports/Manpower Development
+ Health, Nutrition &
Total Expenditures Population Control + Labor and
Employment + Housing and
Community Development +
Social Services and Social
Welfare (GF + SEF + TF)
BENCHMARK:
SSER > average for the LGU income class to which the LGU
belongs and should be increasing
 INDICATORS

EXAMPLE:

SOCIAL
INCOME TOTAL SOCIAL SERVICES SERVICES
LGU NAME BENCHMARK RATING
CLASS EXPENDITURES EXPENDITURES EXPENDITURE
RATIO

MANILA CITY Special 862,138,853.28 4,224,584,358.39 43% 38% PASSED

QUEZON CITY Special 1,284,286,896.38 4,837,542,749.93 33% 38% FAILED

 INDICATORS

ECONOMIC SERVICES The ratio of LGU

EXPENDITURE RATIO (ESER) economic expenditures to
total LGU expenditures
FORMULA: Economic Services Expenditures =
Economic Services (GF + SEF + TF)
Economic Services Expenditures x 100
Total Expenditures

BENCHMARK:
ESER > average for the LGU income class to which the LGU
belongs and should be increasing
 INDICATORS

EXAMPLE:

ECONOMIC
INCOME TOTAL ECONOMIC SERVICES
LGU NAME BENCHMARK RATING
CLASS EXPENDITURES SERVICES EXPENDITURE
RATIO

MANILA CITY Special 862,138,853.28 3,068,073,695.04 31% 23% PASSED

QUEZON CITY Special 1,284,286,896.38 2,209,710,073.52 15% 23% FAILED

 INDICATORS
The ratio of LGU expenditures
DEBT SERVICE RATIO (DSR) for debt service to total LGU
annual regular income
Debt Service (GF) =
FORMULA: Debt Service
(Interest Expense &
(FE)

Debt Service Payment (GF) x 100 Other Charges) + Debt

Service (Principal Cost)
Annual Regular Income (GF)

BENCHMARK:
DSR < 20% of annual regular income and ratio should at least
be stable if not decreasing across time
 INDICATORS

EXAMPLE:

DEBT
INCOME ANNUAL REGULAR
LGU NAME DEBT SERVICE SERVICE BENCHMARK RATING
CLASS INCOME
RATIO (DSR)

MANILA CITY Special 10,154,964,750.07 76,799,509.27 1% < 20% PASSED

QUEZON CITY Special 17,058,330,468.11 - 0% < 20% PASSED

 INDICATORS

The ratio of LGU operating

GROSS OPERATING SURPLUS surplus to debt service
(GF) TO DEBT SERVICE RATIO Gross Operating Surplus/Deficit =

(GOSDSR)
Net Operating Income/ (Loss) From
Current Operations + Debt Service
(FE) (GF)

FORMULA: Operating Surplus =-

Operating Revenues –
Gross Operating Surplus (Deficit) (GF) Operating Expenditures

Debt Service Payment (GF)

BENCHMARK:
GOSDSR > average for the LGU income class to which the
LGU belongs and should be increasing
 INDICATORS

EXAMPLE:

GROSS OPERATING
NET OPERATING GROSS
DEBT SERVICE (FE) SURPLUS (GF) TO
INCOME INCOME/ (LOSS) OPRATING
LGU NAME DEBT SERVICE (INTEREST EXPENSE DEBT SERVICE BENCHMARK RATING
CLASS FROM CURRENT SURPLUS/
& OTHER CHARGES) RATIO (GF)
OPERATIONS DEFICIT
(GOSDSR)

MANILA CITY Special 5897% 2998% PASSED

76,799,509.27 16,388,524.56 4,451,948,361.29 4,528,747,870.56

QUEZON CITY Special 100% 2998% FAILED

- - 8,743,758,684.10 8,743,758,684.10
 INDICATORS

The ratio of an LGUs outstanding

DEBT TO NET ASSET debt to its depreciated asset base
RATIO (DNAR) Total Net Assets = Total
Assets (Net of Depreciation
FORMULA:
Total Outstanding Debt x 100
Total Net Assets

BENCHMARK:
DNAR should be < 1 indicating that an LGU has a sufficient
asset base to back up its debt.
 INDICATORS

EXAMPLE:

INCOME DEBT TO NET

LGU NAME DEBT SERVICE TOTAL ASSET BENCHMARK RATING
CLASS ASSET RATIO

MANILA CITY Special 76,799,509.27 11,847,378,851.33 1% < 1% PASSED

QUEZON CITY Special - 51,148,024,257.31 0% < 1% PASSED

 INDICATORS

CAPITAL INVESTMENT The % share of capital

EXPENDITURES TO TOTAL investment to total LGU
REVENUES RATIO (CIETRR) revenues

FORMULA:
Capital Investment Expendituresx 100
Total Revenues

BENCHMARK:
CIETRR > average for the LGU income class to which the LGU
belongs and should be stable if not increasing
 INDICATORS

EXAMPLE:

CAPITAL INVESTMENT
CAPITAL/
INCOME EXPENDITURES TO
LGU NAME TOTAL REVENUE INVESTMENT BENCHMARK RATING
CLASS TOTAL REVENUES
EXPENDITURES
RATIO (CIETRR)

MANILA CITY Special 2,287,001,748.91 19% 23% FAILED

11,975,244,481.97

QUEZON CITY Special 4,860,912,185.54 26% 23% PASSED

18,526,608,004.54
 INDICATORS

NET OPERATING SURPLUS The ratio of LGU net

operating surplus to total
TO TOTAL LGU REVENUE LGU revenues
RATIO (NOSTRR)
Net Operating Surplus/Deficit = Net
FORMULA: Operating Income/(Loss) from Current
Operations
Net Operating Surplus (Deficit) x 100
Total Revenues
BENCHMARK:
NOSTRR > average for the LGU income class to which the LGU
belongs and should be increasing in case of operating surpluses
and decreasing in case of operating deficits
 INDICATORS

EXAMPLE:

NET OPERATING NET OPERATING

INCOME INCOME/ (LOSS) FROM SURPLUS TO TOTAL
LGU NAME TOTAL REVENUE BENCHMARK RATING
CLASS CURRENT LGU REVENUE RATIO
OPERATIONS (NOSTRR)

MANILA CITY Special 4,451,948,361.29 37% 42% FAILED

11,975,244,481.97

QUEZON CITY Special 8,743,758,684.10 47% 42% PASSED

18,526,608,004.54
 INDICATORS
The calculated figure reflects the
UNCOMMITED CASH BALANCE uncommitted cash portion of
government equity in the
TO TOTAL LGU EXPENDITURE LGAS. This is roughly
RATIO (UCBTER) equivalent to a sort of an annual
financial reserve
FORMULA:
Uncommited Cash Balance x 100 Uncommitted Cash Balance = Amount
Available for Appropriations/Operations
Total Expenditures
BENCHMARK:
UCBTER > average for the LGU income class to which the
LGU belongs and should be increasing
 INDICATORS

EXAMPLE:

FINANCIAL UNCOMMITED
COMMITMENT CASH BALANCE
INCOME TOTAL UNCOMMITED
LGU NAME Amount Available for TO LOCAL LGU BENCHM RATING
CLASS EXPENDITURES CASH BALANCE
appropriations/ EXPENDITURES ARK
operations RATIO

MANILA CITY Special 45% 62% FAILED

9,870,708,854.30 1,300,598,346.53 4,401,047,675.59

QUEZON CITY Special 79% 62%

14,643,761,505.98 1,171,716,329.10 11,589,796,425.50 PASSED
LGU Financial Performance Typology
Rating Scheme

 Comparison will be made across LGU Types

(Province, City, and Municipality) and across LGU
Income Class
 Most LGU governance rating system require at
least 1/3 of the benchmarks must be attained for a
good rating
LGU Financial Performance Typology
Rating Scheme

REVENUE PERFORMANCE
 Must meet indicators 2 and 5 plus at least 4 of the
remaining 11 revenue performance indicators
(1,3,4,6,7,8,15,16,17,19 and 20) to be rated good
LGU Financial Performance Typology
Rating Scheme

EXPENDITURE PERFORMANCE
 Must meet indicators 9 and either 13 or 14 plus at
least 1 of the remaing 4 expenditure performance
indicators (10,11,12 and 18) to be rated good.
LGU Financial Performance Typology
Rating Scheme

OVERALL PERFORMANCE
 an LGU will have to pass at least nine (9) out of
twenty (20) financial performance benchmarks with
4 indicators as “musts” to attain a good revenue
plus good expenditure rating.
LGU Performance Typology
TYPE 1: TYPE 2:
GOOD REVENUE GOOD REVENUE
GOOD EXPENDITURE POOR EXPENDITURE

TYPE 3: TYPE 4:
POOR REVENUE POOR REVENUE
GOOD EXPENDITURE POOR EXPENDITURE
Reference
Local Public Financial Management Tools for
the Electronic Statement of Receipts and
Expenditures; 19 June 2015