LTOM

UPDATED
LOCAL TREASURY OPERATIONS

MANUAL (LTOM)
BOOK 1
Fiscal Organization of Local

Governments and the Local
Treasury Office
Updated Local Treasury Operations Manual (LTOM)
Bureau of Local Government Finance
Department of Finance
Copyright © Bureau of Local Government Finance, 2016

Telefax: (+632) - 522 - 8770 or 71
Wed: www.blgf.gov.ph
E-mail: blgf@blgf.gov.ph
Published by:
Bureau of Local Government Finance

Department of Finance
8th Floor, EDPC Bldg., BSP Complex
Roxas Blvd., Metro Manila
Philippines 1004
First Printing, 2008.

PHALTRA
2016 RevisedEdition
All rights reserved.
No part of this book may be reproduced in any form or by any means without express
permission of the copyright owner and the publisher.
ISBN: 978-971-94098-8-5
Printed in the Philippines
Updated Local Treasury Operations Manual (LTOM) 2

Republic of the Philippines
DEPARTMENT OF FINANCE
Roxas Boulevard Corner Pablo Ocampo, Sr. Street
Manila 1004
MESSAGE
Local treasurers play a pivotal role in transforming LGUs to become a self-reliant community
capable of providing an efficient and effective delivery of basic services and implement local
development projects making them an effective partners in attaining national development
goals.The demand for local treasurers to perform professionally at a certain level of
standards has been my advocacy for the local government sector.
The timely issuance of the Updated Local Treasury Operations Manual (ULTOM) highlights
the DOF’s thrust in professionalizing the rank of the local treasurers. It is designed as a
standard reference for all local treasurers in order to attain a nationwide uniform
implementations of existing laws, rules and regulation on local treasury operations.
Towards this end, the ULTOM shall serve as the basic reference for local treasurers in
complying with the performance standards and competencies required by DOF. Local Chief
Executives (LCE) are also encourage to read this manual to better appreciate the scope of
the entire local treasury operations.
This manual shall be a work in progress integrating pertinent progressive laws,

administrative issuances as well as judicial and quasi-judicial decisions relative the local
treasury operations. And I endeavor those who prepared this manual to make themselves
available for the next revision.
Mabuhay and More Power.

UPDATED LOCAL TREASURY OPERATIONS MANUAL
A. INTRODUCTION
This updated manual is a vital reference material and guide to all local treasurers, and should be
considered as a work in progress which shall further be updated regularly to be attuned to the
latest issuance of laws, policies, rules and regulations.
This manual has been developed through the support of the EU-PFM 2 project and the
collaborative efforts of Bureau of Local Government Finance (BLGF) central and regional offices
and selected provincial, city and municipal treasurers.
1. TITLE
This Manual shall be known as the UPDATED LOCAL TREASURY OPERATIONS MANUAL,
also herein referred to as the ULTOM. It is an issuance of the Department .of Finance (DOF) thru
the BLGF pursuant to Article 456 of the implementing rules and regulations (IRR) of the Local
Government Code of 1991 (LGC).
2. OVERVIEW
On March 26, 2008 DOF issued Department Order No.10-08 promulgating the issuance of the
LTOM to serve as a handy reference material for all provincial, city and municipal treasurers in
discharging their mandated functions. Since then, LTOM has been a constant companion of local
treasury offices in their day to day operations.
DOF has in recent years perceived the need to revise and update, improve and enhance the
LTOM to be relevant and attuned to modern trends as well as to recent laws, policies, rules and
regulations issued by oversight agencies. The revision made a complete overhaul of the LTOM in
terms of content groupings and physical printing and packaging to make it more functional to the
users.
This updated manual is now prescribe for use by all provincial, city, municipal treasurers as a
reference for operation of local treasury offices.
B. RATIONALE
Recent developments for the last ten (10) years in areas of local public finance render some
provisions of the LTOM irrelevant to the operations of local treasury offices.
There are cases that local treasurers and other local treasury officials unknowingly follow
superseded provisions of the LTOM. There are also reported complaints from the users that the
present LTOM book is bulky, voluminous and difficult to carry.
To address those pressing issues, there is a need to update the LTOM in order to harmonize its
provisions to the recent laws, policies, rules and regulations, to keep abreast with the modern
trends and to be functional for local treasurers and other stakeholders.
1. Major Changes in Fiscal Organization Since the LTOM was Issued
The Local Government Code of 1991 (LGC) which is the basis for crafting the LTOM
consolidated and adopted the various provisions of different laws which sought to expand the
autonomy of local government (R.A. 2264, R.A. 2370 and R.A. 5185). Provisions of P.D. 231, as
amended by P.D. 426; P.D. 464 and P.D. 477 which were issued to improve the fiscal operations
and organization of local government units were also adopted by the LGC.

Since the issuance of the LTOM in 2008 many laws were issued amending the certain provisions
of the LGC as well as other laws providing for changes in the fiscal operations of LGUs (RA.
9640, RA 9006, RA 10121).
All of these laws and other policies affecting the local fiscal organization and functions were
included in the development of the ULTOM and is summarized in Local Treasury Operations
(LTO) Annex __ of this Manual.
2. Relationship of the Manual to Existing Laws, Issuances and Pronouncements of

Other Fiscal and Regulatory Agencies
Basically, ULTOM is based from the provisions of the LGC as amended by R.A. 9640 and R.A.
9006 and its “Implementing Rules and Regulations,” particularly those that apply to the fiscal and
other related local treasury operations of LGUs. It also draws heavily from the Government
Accounting and Auditing Manual (GAAM) and the New Government Accounting System for LGUs
(NGAS-LGU) of COA; the Updated Budget Operations Manual (UBOM) of the DBM;
opinions/rulings and issuances of the BLGF; policies, regulations and opinions/rulings/decisions
of various bodies or agencies and authorities concerned with fiscal management and operations
such as the DOF, COA, DBM and NEDA and other authoritative private references.
Consequently, this Manual does not seek to supersede these issuances and rulings of the fiscal
agencies, but rather to reiterate and amplify their respective applications.
C. OBJECTIVES OF THIS MANUAL
The objectives of this MANUAL are as follows:
1. To provide Local Treasurers with an updated reference material that will guide them in
discharging their duties and functions under the decentralized framework and environment of
the LGC;
2. To provide Local Treasurers with a basis for developing their own capabilities to respond to
the demands of their roles within the new LGU and fiscal management structures;
3. To enable Local Treasurers to appreciate fully their powers, functions, and authorities, and to
relate these constructively with those of other officers concerned with fiscal functions;
4. To introduce to Local Treasurers the basic concepts and tools of the non-traditional
functions of LGUs in which they may be involved in whether as principals or as advisers.
5. To serve as a guide to Local Treasurers and other fiscal officers in the management
of the LGU’s financial affairs conforming to prescribed good governance practices and internal
control measures for greater, proper accountability and transparency.
D. BRIEF DESCRIPTION THIS MANUAL
This manual is consist of four (4) books which are printed and packaged separately for easy
reference. Each book contains acronyms, table of contents, body of the manual, process flow,
illustrative examples and annexes for easy reference.This is intended to be used as a stand-
alone reference for Local Treasurers. However, users of this manual are encourage to have the
texts of the LGC and its IRR, GAAM, the NGAS-LGU, the UBOM and the myriad of compilation
of rulings, issuances and circulars for further readings.
Provisions contain in the manual are close paraphrase if not quoted verbatim from the relevant
text of the laws, regulations, policies, issuances, opinions rulings and decisions. To achieve the

purposes of this Manual, the valid portions of related provisions from various laws and
issuances are recast into a single provision, and parts of a single provision that apply to
different aspects of treasury operations, are reflected separately in the appropriate topics.
The source or sources of particular sections or topics of this Manual are reflected in the text
itself, or set in parenthesis, to enable the user to refer to the original provision if desired. Where
a particular topic of this Manual refers to provisions quoted in another Chapter or Section, the
location of the provisions alluded to is indicated.
The content and description of each book is briefly presented below:
BOOK ONE: FISCAL ORGANIZATION OF LOCAL GOVERNMENTS AND THE LOCAL

TREASURER
Book One describes the general concept of fiscal organization of Local Governments Units
(LGUs) including the contemporary requirements for the creation of Provinces, Cities and
Municipalities pursuant to the existing laws of the land. This book also discusses the
qualifications and appointments as well as the general and specific roles, duties and
responsibilities of the local treasurers and his/her assistant.
Likewise, this book enumerates the role of the DOF thru BLGF in the supervision of all local
treasurers to ensure a uniform application of standard procedures in the operations of local
treasury offices.
Book One is consist of five (5) Chapters including Annexes, viz:
Chapter 1. Fiscal Organization of Local Governments and the Local Treasurer
Chapter 2. Qualifications and Appointment of the Local Treasurer and the Assistant
Treasurer
Chapter 3. Roles, Duties and Responsibilities of the Local Treasurer
Chapter 4. Bonding of Local Treasurers and other LGU Accountable Officers
Chapter 5. Administrative and Technical Supervision by the Bureau of Local Government

Finance (BLGF)
Annexes
BOOK TWO: RECEIPT AND COLLECTION OF INCOME, REVENUES AND OTHER FUND
SOURCES
Book Two describes and enumerates the revenue-raising powers of provinces, cities,
municipalities and barangays as well as external sources of revenues of LGUs to support its
operations. Process flow, forms used, illustrative samples were provided in this book for clear
understanding.
This book consists of four (4) chapters including Forms and Annexes.
Chapter 1. Income from Local Sources
Chapter 2. Income from External Sources
Chapter 3. Collection Procedures

Chapter 4. Examination of Books of Accounts and Pertinent Records of Businesses by the
Local Treasurer
Forms and Annexes
BOOK THREE: FUND MANAGEMENT PRACTICES, EXPENDITURES AND

DISBURSEMENTS
Book Three discusses the fundamentals of fund management practices, expenditures and
disbursement process as a component of good local fiscal management. This Book also
incorporates the concepts and guidelines on accountability and responsibility of local treasurers
and the procedures and remedies on cash shortages.
Also included in this Book are the administrative, civil and criminal liabilities of the Local
Treasurer in the administration and custody of local government funds as well as the examination
of lgu books of account by the COA.
Book Three is consists of five (5) Chapters including Forms and Annexes.
Chapter 1. Concept of Funds
Chapter 2. Concept of Appropriation, Allotment and Obligation
Chapter 3. Disbursement of Local Funds
Chapter 4. Fund Management Practices
Chapter 5. Responsibility, Accountability and Liability of Local Treasurers for Funds
Chapter 6. Examination of Accounts by the Commission on Audit
Chapter 7. Code of Conduct and Ethical Standards of Public Officials and Employees
Chapter 8. Administrative, Civil and Criminal Liabilities of Local Treasurers in the

Administration of Local Taxes, Fees and Charges
Forms and Annexes
BOOK FOUR: DETAILED PROCEDURES ON THE ADMINISTRATION AND COLLECTION OF

REAL PROPERTY, BUSINESS TAX, FEES AND CHARGES AND OTHER FUND SOURCES
This Book contains the legal provisions, policies and procedures, remedies, forms and reports on
the collection of Real Property Taxes, Business and Local Taxes, Fees and Charges, Local
Government Business Enterprise Operations, Credit Financing and Other Resource Mobilization.
This book also details the taxing powers of Provinces, Cities, Municipalities and Barangay that
distinguishes one from each other for easy reference.
This book consists of twelve (12) chapters including Forms and Annexes.
Chapter 1. Real Property Taxation
Chapter 2. Business and Other Local Taxes: Taxing Powers of Provinces
Chapter 3. Business and Other Local Taxes: Taxing Powers of Municipalities

Chapter 4. Business and Other Local Taxes: Taxing Powers of Cities
Chapter 5. Business and Other Local Taxes: Taxing Powers of Barangays
Chapter 6. General Guidelines on the Application of Business and Other Local Taxes
Chapter 7. The Community Tax
Chapter 8. Specific Applications of Authority to Tax Franchises
Chapter 9. Fees and Charges
Chapter 10. Local Government Enterprise Operations
Chapter 11. Credit Financing and Alternative Sources of Funds
Chapter 12. The Statement of Receipts and Expenditures (SRE) and Electronic Statement of
Receipt and Expenditures (eSRE) Financial Management Reporting System
Forms and Annexes

Acknowledgement
The UpdatedLocal Treasury Operations Manual (Updated LTOM) was developed with
technical assistance grant from the European Union Public Financial Management 2 Project
(Support to the LGUs for More Effective and Accountable Public Finance Management), through
a Technical Working Group (TWG) composed of the Bureau of Local Government Finance
(BLGF) Central Office Directors and technical staff as well as the Regional Directors together
with selected local treasurers.
Recognition is given to the members of the TWG who provided endless support during the
drafting and review of the manual and conduct of the consultative and exposure workshops in
three (3) clusters in Luzon, Visayas and Mindanao.
Likewise, the support of the Honorable Secretary Cesar V. Purisima and Undersecretary Carlo A.
Carag and staff of the Department of Finance (DOF) has been invaluable in the realization of this
Manual.

ACRONYMS
ACR - Abstract of Collection Report

ADB - Asian Development Bank
ADP - Authority for Debit Payment
AGDB - Authorized Government Depository Bank
AJE - Adjusting Journal Entry
AO - Accountable Officer
AOM - Audit Observation Memorandum
APP - Annual Procurement Plan
ARMM - Autonomous Region in Muslim Mindanao
ARO - Allotment Release Order
BAC - Bids and Awards Committee
BEI - Board of Election Inspectors
BIR - Bureau of Internal Revenue
BLGF - Bureau of Local Government Finance
BLT - Build-Lease-and Transfer
BMBE - Barangay Micro Business Enterprises
BOO - Build-Own-and Operate
BOT - Build-Operate-and Transfer
BRK - Barangay Record Keeper
BSP - Bangko Sentral ng Pilipinas
BT - Barangay Treasurer
BT - Build-and Transfer
BTO - Build-Transfer-and Operate
BTr - Bureau of the Treasury
CA - Certificate of Authority
CAO - Contract-Add-and Operate
CAMELS - Capital Adequacy, Asset Quality, Management, Earnings,
Liquidity and Sensitivity
CDF - Cash Disbursement Forecast
CFA - Cash Flow Analysis
CFF - Cash Flow Forecast
CHBReg - Cash On Hand and in Bank Register
CM - Credit Memo
CN - Credit Notice
CO - Capital Outlay
COA - Commission on Audit
COE - Current Operating Expenses
COMELEC - Commission on Elections
CRAAF - Consolidated Report of Accountability for Accountable Forms
CRDReg - Cash Receipts and Deposits Register
CRF - Cash Receipts Forecast
CSB - Certificate of Settlement and Balances
CSC - Civil Service Commission
CT - Community Tax
CTC - Community Tax Certificate
DBC - Deputized Barangay Collector
DBM - Department of Budget and Management
DBP - Development Bank of the Philippines
DepEd - Department of Education
DM - Debit Memo
DOF - Department of Finance
DOH - Department of Health
DOJ - Department of Justice

DOST - Department of Science and Technology
DOTC - Department of Transportation and Communication
DV - Disbursement Voucher
EO - Executive Order
EU - European Union
eOR - Electronic Official Receipt
FE - Financial Expenses
GAAM - Government Accounting and Auditing Manual
GAO - General Auditing Office
GDF - Gender and Development Fund
GF - General Fund
GOCC - Government Owned and Controlled Corporation
GSIS - Government Service Insurance System
HLURB - Housing and Land Use Regulatory Board
ICO - In-Charge of Office
ICS - Inventory Custodian Slip
IRA - Internal Revenue Allotment
IRR - Implementing Rules and Regulations
IT - Itinerary of Travel
IUEEU - Irregular, Unnecessary, Excessive, Extravagant or
Unconscionable
JEV - Journal Entry Voucher
JMC - Joint Memorandum Circular
LBM - Local Budget Matrix
LBP - Land Bank of the Philippines
LCE - Local Chief Executive
LDP - Local Development Plan
LDRRMF - Local Disaster Risk Reduction and Management Fund
LFC - Local Finance Committee
LGC - Local Government Code
LGU - Local Government Unit
LMB - Land Management Bureau
LO - Liquidating Officer
LOA - Letter of Authority
LR - Liquidation Report
LTO - Local Treasury Operations
MB - Monetary Board
MC - Memorandum Circular
MDF - Municipal Development Office
MDFO - Municipal Development Fund Office
MMA - Metro Manila Area
MMDA - Metro Manila Development Authority
MOA - Memorandum of Agreement
MOOE - Maintenance and Other Operating Expenses
MOU - Memorandum of Understanding
MRPAAO - Manual on Real property Appraisal and Assessment Operations
MTOP - Motorized Tricycle Operators Permit
NC - Notice of Charge
NCA - Notice of Cash Allocation
ND - Notice of Disallowance
NEDA - National Economic and Development Authority
NGAS - New Government Accounting System
NIRC - National Internal Revenue Code
NPC - National Power Corporation
NPO - National Printing Officer
NPV - Net Present Value
NS - Notice of Suspension

NSO - National Statistics Office
ObR - Obligation Request
ODA - Official Development Assistance
OIC - Officer-In-Charge
OR - Official Receipt
PAR - Property Acknowledgement Receipt
PB - Punong Barangay
PCF - Petty Cash Fund
PCFReg - Petty Cash Fund Register
PCV - Petty Cash Voucher
PD - Presidential Decree
PDAF - Priority Development Assistance Fund
PI - Public Infrastructure
PNB - Philippine National Bank
PO - Purchase Order
PPE - Plant, Property and Equipment
PPSAS - Philippine Public Sector Accounting Standard
PS - Personal Services
RA - Republic Act
RAAF - Report of Accountability for Accountable Forms
RAAO - Register of Appropriation, Allotments and Obligations
RAC - Registry of Appropriation and Commitments
RATA - Representation and Transportation Allowance
RCD - Report of Collections and Deposits
RCI - Report of Checks Issued
RIS - Requisition and Issue Slip
RMIT - Revised Manual of Instructions to Treasurers
ROO - Rehabilitate-Own-and Operate
ROT - Rehabilitate-Operate-and Transfer
RPT - Real Property Tax
RPTAR- Real Property Tax Register
RPTOP- Real Property Tax Order of Payment
RRACCS - Revised Rules on Administrative Cases in the Civil Service
SAM - State Audit Manual
SB - Sangguniang Barangay
SCD - Summary of Collections and Deposits
SCkI - Summary of Checks Issued
SCP - Summary of Cash Payments
SCR - Summary of Collections and Remittance
SEF - Special Education Fund
SIE - Statement of Income and Expenditures
SKF - Sangguniang Kabataan Fund
SOE - Statement of Expenditures
SPL - Special Leave Privilege
SPPCV - Summary of Paid Petty Cash Vouchers
SRE - Statement of Receipts and Expenditures
SRS - Statement of Receipt Sources
TDAF - Tax Data and Assessment Form
TO - Travel Order
UBOM - Updated Budget Operations Manual
VAT - Value Added Tax
VDS - Validated Deposit Slip
WB - World Bank

TABLE OF CONTENTS
Chapter 1. FISCAL ORGANIZATION OF LOCAL GOVERNMENT UNITS (LGUs).....................15

Section 1. Legal Framework...............................................................................................................15
Section 2. Creation, Division, Merger, Abolition and Conversion of Province, Cities and
Municipalities......................................................................................................................17
Section 3. Organizational Structures: Some Models for the Treasurer’s Office..................................22
Chapter 2. QUALIFICATIONS AND APPOINTMENT OF THE LOCAL TREASURER AND THE

ASSISTANT TREASURER.............................................................................................................24
Section 4. Authority of the Secretary of Finance to Appoint Local Treasurer and Assistant
Treasurer............................................................................................................................24
Section 5. Authority of the Local Chief Executive (LCE) over the Local Treasurer and Assistant
Treasurer............................................................................................................................24
Section 6. Qualifications of a Local Treasurer and Assistant Treasurer..............................................24
Section 7. Processing of the Appointments of Provincial, City, and Municipal Treasurers and
Assistant Provincial, City, and Municipal Treasurers.........................................................25
Section 8. Designation of Acting / Officer-In-Charge (OIC) / Incharge of Office (ICO)
Provincial / City / Municipal Treasurers and Assistant Treasurers.....................................27
Section 9. Distinction of Designations as Acting Treasurer and Officer-in-Charge (OIC)...................30
Section 10. Automatic Succession of the Assistant Provincial/City/Municipal Treasurer as
Acting/OIC/ICO Provincial/City/Municipal Treasurer..........................................................31
Section 11. Designation in the Absence of an Assistant Treasurer.....................................................32
Section 12. Detail or Temporary Assignment of Local Treasurers and Assistant Local
Treasurers..........................................................................................................................32
Section 13. Salaries of Local Treasurers and Assistant Local Treasurers under Preventive
Suspension.........................................................................................................................33
Section 14. Salaries of Local Treasurers and Assistant Local Treasurers during Attendance in
Administrative, Civil or Criminal Investigation....................................................................34
Section 15. Approval and Grant of Application for Leave of Absence of Local Treasurers and
Assistant Local Treasurers.................................................................................................35
Chapter 3. ROLES, DUTIES, AND RESPONSIBILITIES OF THE LOCAL TREASURER...........37

Section 16. Powers and Duties of Local Treasurer and Assistant Treasurer......................................37
Section 17. The Local Treasurer's Role in Boards and Committees Created Pursuant to the
LGC and Other Laws.........................................................................................................40
Section 18. Treasurer's Role in National and Local Elections pursuant to the Omnibus Election
Code...................................................................................................................................43
Chapter 4. BONDING OF LOCAL TREASURERS AND OTHER LGU ACCOUNTABLE

OFFICERS.......................................................................................................................................45
Section 19. Legal Basis for the Bonding of Local Treasurers and Other LGU Accountable
Officers...............................................................................................................................45
Section 20. Guidelines on Bonding of Local Treasurers and Accountable Officers............................45

Section 21. Schedule of Cash Accountability and the Corresponding Bonds.....................................47
Section 22. Renewal............................................................................................................................48
Section 23. Increase in the Amount of Accountability..........................................................................49
Section 24. Accountable Officers Considered Unsafe Risks...............................................................49
Section 25. Cancellation of Bond........................................................................................................50
Section 26. Effect of Cancellation........................................................................................................50
Section 27. The Fidelity Fund..............................................................................................................50
Section 28. Extent of Liability...............................................................................................................50
Section 29. Validity of Fidelity Bonds...................................................................................................51
Section 30. Adjudication and Payment of Claims against the Fidelity Fund.......................................51
Chapter 5. ADMINISTRATIVE AND TECHNICAL SUPERVISION BY THE BUREAU OF LOCAL

GOVERNMENT FINANCE (BLGF).................................................................................................52
Section 31. Administrative and Technical Supervision........................................................................52
Section 32. Conduct of Local Treasury Operations Evaluation...........................................................53
Annexes..........................................................................................................................................56
Annex 1: Minimum Documentary Requirement for Specific Expense Item.........................................56
Annex 2: Maintenance and Other Operating Expenses (MOOE)........................................................60

Chapter 1. FISCAL ORGANIZATION OF LOCAL GOVERNMENT UNITS (LGUs)
Section 1. Legal Framework
A. The President of the Philippines shall exercise general supervision over local
governments. Provinces with respect to component cities and municipalities, and cities
and municipalities with respect to component “barangays”, shall ensure that the acts of
their component units are within the scope of their prescribed powers and functions.
Each Local Government Unit (LGU) shall have the power to create its own sources of
revenues and to levy taxes, fees and charges subject to such guidelines and limitations
as the Congress may provide, consistent with the basic policy of local autonomy. Such
taxes, fees, and charges shall accrue exclusively to the local governments. LGUs shall
have a just share, as determined by law, in the national taxes which shall be
automatically released to them.(Article X, Secs. 4-6, Phil. Constitution)
B. LGUs shall have the power and authority to establish an organization that shall be
responsible for the efficient and effective implementation of their development plans,
program objectives and priorities; to create their own sources of revenues and to levy
taxes, fees, and charges which shall accrue exclusively for their use and disposition and
which shall be retained by them; to have a just share in national taxes which shall be
automatically and directly released to them without need of any further action; to have an
equitable share in the proceeds from the utilization and development of the national
wealth and resources within their respective territorial jurisdictions including sharing the
same with the inhabitants by way of direct benefits; to acquire, develop, lease, encumber,
alienate, or otherwise dispose of real or personal property held by them in their
proprietary capacity and to apply their resources and assets for productive,
developmental, or welfare purposes, in the exercise or furtherance of their governmental
or proprietary powers and functions and thereby ensure their development into self-
reliant communities and active participants in the attainment of national goals.(Sec. 18,
LGC)
C. Local governments shall be entitled to an equitable share in the proceeds of the

utilization and development of the national wealth within their respective areas, in the
manner provided by law, including sharing the same with the inhabitants by way of direct
benefits 0.(Art. X, Sec. 7, LGC)
D. Every LGU created or recognized under the Local Government Code (LGC) is a body
politic and corporate endowed with powers to be exercised by it in conformity with law. As
such, it shall exercise powers as a political subdivision of the national government and as
a corporate entity representing the inhabitants of its territory.(Sec. 15, LGC)
E. When a new local government unit is created, its corporate existence shall commence
upon the election and qualification of its chief executive and a majority of the members of
its “sanggunian”, unless some other time is fixed by the law or ordinance creating it.(Sec.
14, LGC)
F. Every LGU, as a corporation, shall have the following powers:
1. To have continuous succession in its corporate name;

2. To sue and be sued;
3. To have and use a corporate seal;
4. To acquire and convey real or personal property;
5. To enter into contracts; and
6. To exercise such other powers as are granted to corporations, subject to the
limitations provided in this Code and other laws.(Sec. 22 (a), LGC)

G. Unless otherwise provided in the LGC, no contract may be entered into by the Local
Chief Executive (LCE) in behalf of the LGU without prior authorization by the
“sanggunian” concerned. A legible copy of such contract shall be posted at a
conspicuous place in the provincial capitol or the city, municipal or “barangay hall”. It shall
enjoy full autonomy in the exercise of their proprietary functions and in the limitations
provided in the LGC and other applicable laws. (Sec. 22 (c), LGC)
H. Every local government unit shall exercise the powers expressly granted and those
necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for
its efficient and effective governance, and those which are essential to the promotion of
the general welfare. Within their respective territorial jurisdictions, LGUs shall ensure and
support, among other things, the preservation and enrichment of culture, promote health
and safety, enhance the right of the people to a balanced ecology, encourage and
support the development of appropriate and self-reliant scientific and technological
capabilities, improve public morals, enhance economic prosperity and social justice,
promote full employment among their residents, maintain peace and order, and preserve
the comfort and convenience of their inhabitants.(Sec. 16, LGC)
I. The financial affairs, transactions, and operations of LGUs shall be governed by the
following fundamental principles and policies, to wit:
1. No money shall be paid out of the local treasury except in pursuance of an

appropriations ordinance or law;(Sec. 305 (a), LGC)
2. Provincial, city and municipal treasurers shall open and maintain in the name of
their respective local government units separate depository accounts for each
fund only with government financial institutions (GFIs) that have universal bank
license and CAMELS rating of at least “3”.(DOF Circular No. 001-2015, dated June
1, 2015);
3. Local government funds and monies shall be spent solely for public purposes(Sec.
305 (b), LGC);
4. Local revenue is generated only from sources expressly authorized by law or

ordinance, and collection thereof shall at all times be acknowledged properly Sec.
305 (c), LGC);
5. For every payment received, the collecting officer shall immediately issue an
official receipt in acknowledgment thereof. The receipt may be in the form of cash
tickets and the like, or officially numbered receipts subject to proper custody,
accountability and audit (Sec. 4, COA Circular No. 92-382 dated. July 3, 1992);
6. All monies officially received by a local government officer in any capacity or on any
occasion shall be accounted for as local funds, unless otherwise provided by
law(Sec. 305 (d), LGC);
7. Provinces, cities and municipalities shall maintain a General Fund which shall be
used to account for such monies and resources as may be received by and
disbursed from the local treasury. The General Fund shall consist of monies and
resources of the local government which are available for the payment of
expenditures, obligations or purposes not specifically declared by law as
accruing and chargeable to, or payable from, any other fund (Sec. 1, COA
Circular No. 92-382 dated July 3, 1992; Sec. 308, LGC);
8. There shall also be maintained in every Provincial, City or Municipal Treasury the
following special funds:

8.1 Special Education Fund(SEF) which shall consist of the respective
shares of provinces, cities, and municipalities in the proceeds of the
additional tax on real property to be appropriated for purposes prescribed in
Sec. 272 of the LGC;
8.2 Trust Funds(TF) which shall consist of private and public monies which
have officially come into the possession of the local government or of a local
government official as trustee, agent or administrator, or which have been
received as a guaranty for the fulfillment of some obligation. A trust fund
shall only be used for the specific purpose for which it was created or for
which it came into the possession of the local government unit. (Sec. 2,
COA Circular No. 92-382 dated July 3, 1992; Sec. 309, LGC).Trust funds in
the local treasury shall not be paid out except in fulfillment of the purpose for
which the trust was created or the funds received(Sec. 305 (e), LGC);
8.3 Special Accounts in the General Fund - Local government units shall
maintain special accounts in the general fund for the following:
i. Public utilities and other economic enterprises;
ii. Loans, interests, bond issues, and other contributions for specific
purposes; and
iii. Development projects funded from the share of the local government
unit concerned in the internal revenue allotment and such other special
accounts which may be created by law or ordinance (Sec. 313, LGC);
9. Receipts, transfers, and expenditures involving the foregoing special accounts shall
be properly taken up thereunder(Sec. 313, LGC);
10. Profits or income derived from the operation of public utilities and other economic
enterprises, after deduction for the cost of improvement, repair and other related
expenses of the public utility or economic enterprise concerned, shall first be
applied for the return of the advances or loans made therefor. Any excess shall
form part of the general fund of the local government unit concerned.(Sec. 313,
LGC);
11. Every officer of the local government unit whose duties permit or require the
possession or custody of local funds shall be properly bonded, and such officer
shall be accountable and responsible for said funds and for the safekeeping thereof
in conformity with the provisions of law(Sec. 305 (f), LGC); and
12. Local governments shall formulate sound financial plans, and local budgets shall be
based on functions, activities, and projects, in terms of expected results. (Sec. 305
(g), LGC)
Section 2. Creation, Division, Merger, Abolition and Conversion of Province, Cities and
Municipalities. –anLGU may be created, divided, merged, abolished, or its boundaries
substantially altered either by law enacted by Congress in the case of a province, city,
municipality, or any other political subdivision, or by ordinance passed by the “sangguniang
panlalawigan or sangguniang panlungsod” concerned in the case of a “barangay” located within
its territorial jurisdiction, subject to such limitations and requirements prescribed in the LGC.(Sec.
6, LGC)
a) Common Requirements for Creation and Conversion of Province and City:

1. As a general rule, the creation of an LGU or its conversion from one level to another
level shall be based on three (3) verifiable indicators of viability and projected
capacity to provide services, to wit:
INDICATORS
It must be sufficient, based on acceptable standards, to
provide for all essential government facilities and services
1 Income and special functions commensurate with the size of its
population, as expected of the local government unit
concerned.
It shall be determined on the total number of inhabitants
Populatio
2 within the territorial jurisdiction of the local government unit
n
concerned.
It must be contiguous, unless it comprises two or more
islands or is separated by a local government unit
independent of the others; properly identified by metes and
3 Land Area
bounds with technical descriptions; and sufficient to provide
for such basic services and facilities to meet the
requirements of its populace.
2. Compliance with income, population and land area shall be attested to by the
Department of Finance (DOF), Philippine Statistics Authority (PSA), and the Land
Management Bureau (LMB), respectively.(Sec. 7, LGC)
3. Also, no creation, division, merger, abolition, or substantial alteration of boundaries

of LGUs shall take effect unless approved by a majority of the votes cast in a
plebiscite called for the purpose in the political unit or units directly affected. Said
plebiscite shall be conducted by the Commission on Elections (COMELEC) within
one hundred twenty (120) days from the date of effectivity of the law or ordinance
effecting such action, unless said law or ordinance fixes another date.
b) Requirements for the Creation of Province, Cities and Municipalities. - A Province,

City, Municipality (P/C/M) and Highly Urbanized City (HUC) may be created in
accordance with the criteria provided for in the LGC, viz:
1. Creation of a Province:
1.1 A province may be created if it has an average annual income, as certified by

the Department of Finance (DOF) thru the Bureau of Local Government
Finance (BLGF), of not less than Twenty Million Pesos ( ₱20,000,000.00) based
on 1991 constant prices and either of the following requisites:
i. A contiguous territory of at least Two Thousand (2,000) square kilometers,

as certified by the Land Management Bureau of the Department of
Environment and Natural Resources (DENR); or
ii. A population of not less than Two Hundred Fifty Thousand (250,000)
inhabitants as certified by the National Statistics Office (NSO) now
Philippines Statistics Authority (PSA).
1.2 The average annual income shall include the income accruing to the general
fund, exclusive of special funds, trust funds, transfers and non-recurring
income.
1.3 Provided, that, the creation thereof shall not reduce the land area, population,
and income of the original unit or units at the time of said creation to less than
the minimum requirements prescribed herein. Also, the territory need not be

contiguous if it comprise two (2) or more islands or is separated by a chartered
city or cities which do not contribute to the income of the province.(Sec. 461,
LGC)
2. Creation of a City:
2.1 A municipality or a cluster of “barangays” may be converted into a component

city if it has a locally generated average annual income, as certified by the DOF
thru the BLGF, of at least One Hundred Million Pesos (₱100,000,000.00) for the
last two (2) consecutive years based on 2000 constant prices, and if it has
either of the following requisites:
i. A contiguous territory of at least One Hundred (100) square kilometers, as

certified by the LMB; or
ii. A population of not less than One Hundred Fifty Thousand (150,000)
inhabitants, as certified by the NSO now PSA.
2.2 The creation thereof shall not reduce the land area, population and income of
the original unit or units at the time of said creation to less than the minimum
requirements prescribed herein. The territorial jurisdiction of a newly-created
city shall be properly identified by metes and bounds. The requirement on land
area shall not apply where the city proposed to be created is composed of one
(1) or more islands. The territory need not be contiguous if it comprises two (2)
or more islands. Also, the average annual income shall include the income
accruing to the general fund, exclusive of special funds, transfers, and non-
recurring income. (RA 90091, amending Sec. 450 of the LGC)
2.3 A city may either be Component or Highly Urbanized. Provided, however, that
the criteria established in the LGC shall not affect the classification and
corporate status of existing cities.
2.4 Independent component cities are those component cities whose charters
prohibit their voters from voting for provincial elective officials. Independent
component cities shall be independent of the province. (Sec. 451, LGC)
3. Creation of a Municipality – A municipality may be created, divided, merged,

abolished, or its boundary substantially altered only by an Act of Congress and
subject to the approval by the majority of the votes cast in the plebisciteto be
conducted by the COMELEC in the local government unit or units directly affected.
Except as may otherwise be provided in the said Act, the plebiscite shall be held
within one hundred twenty (120) days from the date of its effectivity. (Sec. 441, LGC)
3.1 The requisites for creation of the municipality are the following:
i. AnAverage Annual Income, as certified by the Provincial Treasurer, of at

least Two Million five Hundred Thousand Pesos ( ₱2,500,000.00) for at
least two (2) consecutive years based on 1991 constant prices;
ii. A population of at least twenty-five thousand (25,000) inhabitants, as

certified by the National Statistics Office; and
iii. A contiguous territory of at least fifty (50) square kilometers, as certified by

the Land Management Bureau.
1An Act Amending section 450 of R.A. 7160, by increasing the Average Annual Income Requirement for a Municipality or Cluster of Barangays
to be Converted into a Component City

3.2 Provided, That the creation thereof shall not reduce the land area, population or
income of the original municipality or municipalities at the time of said creation
to less than the minimum requirements prescribed.
3.3 The Average Annual Income shall include the income accruing to the General
Fund of the municipality concerned, exclusive of special funds, transfers and
non-accruing income.
3.4 The territorial jurisdiction of a newly created municipality shall be properly

identified by metes and bounds. The requirement on land area shall not apply
where the municipality proposed to be created is composed of one (1) or more
islands. The territory need not be contiguous if it comprises two (2) or more
islands. (Sec. 442, LGC)
4. Highly Urbanized Cities (HUC):
4.4.1 Cities with a minimum population of Two Hundred Thousand (200,000)

inhabitants, as certified by the PSA, and with the latest annual income of at least
Fifty Million Pesos (₱50,000,000.00), based on 1991 constant prices, as certified
by the City Treasurer, shall be classified as HUC. (Sec. 452, LGC)
4.4.2 Article 12 (b) of the Implementing Rules and Regulations (IRR) of the
LGC, the procedures for converting a component City into a HUC are as follows:
i. Income - The interested City shall submit to the Office of the President of
the Philippines a resolution of its “sanggunian” adopted by a majority of all
its members in a meeting duly called for the purpose, approved and
endorsed by the City Mayor. Said resolution shall be accompanied by a
certification as to income and population.
ii. Declaration of Conversion - Within Thirty (30) days from receipt of such
resolution, the President of the Philippines shall, after verifying that the
income and population requirements have been met, declare the City as
highly urbanized. (Sec. 453, LGC)
iii. Plebiscite - Within One Hundred Twenty (120) days from the declaration of
the President of the Philippines or as specified in the declaration, the
COMELEC shall conduct a plebiscite in the City proposed to be converted.
Such plebiscite shall be preceded by a comprehensive information
campaign conducted by the COMELEC with the assistance of national and
local government officials, media, NGOs and other interested parties.
4.4.3 Cities, which do not meet the above requirements, shall be considered
component cities of the province in which they are geographically located. If a
component city is located within the boundaries of two (2) or more provinces,
such city shall be considered a component of the province of which it is used
to be a municipality. Qualified voters of highly urbanized cities shall remain
excluded from voting for elective provincial officials.
4.4.4 Unless otherwise provided in the Constitution or the LGC, qualified voters
of independent component cities shall be governed by their respective
charters, as amended, on the participation of voters in provincial elections.
Qualified voters of cities who acquired the right to vote for elective provincial
officials prior to the classification of said cities as highly urbanized after the
ratification of the Constitution and before the effectivity of the LGC, shall
continue to exercise such right. (Sec. 452, LGC)

c) Fiscal Procedure for the merger/consolidation or abolition of Local Government
Units (LGUs).-
1. Division and merger of existing LGUs units shall comply with the same requirements
herein prescribed for their creation: Provided, however, that such division shall not
reduce the income, population, or land area of the local government unit or units
concerned to less than the minimum requirements prescribed in the LGC: Provided,
further, that the income classification of the original LGUs shall not fall below its
current classification prior to such division. The income classification of LGUs shall be
updated within six (6) months to reflect the changes in their financial position
resulting from the increased revenues as provided herein.(Sec. 8, LGC)
2. An LGU may be abolished when its income, population, or land area has been
irreversibly reduced to less than the minimum standards prescribed for its creation
under the LGC, as certified by the national agencies mentioned in Sec. 7 of the
same, to Congress or to the “sanggunian” concerned, as the case may be. The law
or ordinance abolishing an LGU shall specify the province, city, municipality, or
“barangay” with which the local government unit sought to be abolished will be
incorporated or merged.(Sec. 9, LGC)
d) Creation, Division or Abolition of Provinces, Cities, Municipalities or “Barangay” in

the Autonomous Region in Muslim Mindanao (ARMM).–
1. The Autonomous Region in Muslim Mindanao (ARMM) shall remain an integral and
inseparable part of the national territory of the Republic as defined by the Constitution
and existing laws. The Autonomous Region shall be governed and administered in
accordance with the laws enacted by the Regional Assembly and by RA 9054. (Art.
III, Sec. 1, RA 9054)
2. The legislative power of the autonomous government shall be vested in the Regional
Assembly except to the extent that it is reserved to the people by provisions on
initiative and referendum as provided by law. The Regional Assembly shall be
composed of Members elected by popular vote, with three (3) members elected from
each of the legislative districts. There shall be sectoral representatives in the
Regional Assembly whose number shall not exceed fifteen percent (15%) of the total
number of elected members of the Regional Assembly coming from the agricultural,
labor, urban poor, disabled, indigenous cultural communities, youth, and women
sectors. The Regional Assembly may enact legislation to provide for the
representation of other sectors. (Art. VI, Secs. 1-3, RA 9054)
3. The Regional Assembly may create, divide, merge, abolish, or substantially alter
boundaries of provinces, cities, municipalities, or “barangay” in accordance with the
criteria laid down by the LGC, subject to the approval by a majority of the votes cast
in a plebiscite in the political units directly affected. The Regional Assembly may
prescribe standards lower than those mandated by the LGC, in the creation, division,
merger, abolition, or alteration of the boundaries of provinces, cities, municipalities, or
“barangay”. Provinces, cities, municipalities, or “barangay” created, divided, merged,
or whose boundaries are altered without observing the standards prescribed by the
LGC, shall not be entitled to any share of the taxes that are allotted to the LGU under
the provisions of the LGC.
4. The financial requirements of the provinces, cities, municipalities, or “barangay” so

created, divided, or merged shall be provided by the Regional Assembly out of the
general funds of the Regional Government. The holding of a plebiscite to determine
the will of the majority of the voters of the areas affected by the creation, division,
merger, or whose boundaries are being altered as required by the LGC, shall,
however, be observed. The Regional Assembly may also change the names of LGU,

public places and institutions, and declare regional holidays. (Art. XI, Sec. 19, RA
90542)
Section 3. Organizational Structures: Some Models for the Treasurer’s Office. –
1. The Various organizational models for the Treasurer’s Office indicate its major
divisions which, in turn, are the functional divisions of the office.The treasurer’s office
may create a Computer Service Unit to administer and sustain the implementation of
information technology-based system or processes in the local treasury office
2. For a Provincial Treasurer’s Office, the basic functional divisions are directly under
the Provincial Treasurer. These are the following:
2.1 Administrative Division
2.2 Treasury Operations Review Division;
2.3 Revenue Operations Division;
2.4 Cash Disbursement Division; and
2.5 Cash Receipt Division
Figure 1. Organizational Structure of the Treasurer’s Office
AP s s i s t a n t
PrPr rr oo vv ii nn cc ii aa ll
To r e a s u r e r
Av d m i n i s t r a t i o n
i
n
cc
i
a
l
The Treasurer of component municipalities and cities are under the technical
supervision of the Provincial Treasurer’s Office.
3. The Treasurer’s Office of the city appears to be more complex in structure than that
of the province. It has, for instance, a Computer Services Unit which may not be
present in all provinces and municipalities, it has at least five major functional
divisions, namely:
2An Act To Strengthen And Expand The Organic Act For The Autonomous Region In Muslim Mindanao, Amending For The Purpose Republic
Act No. 6734, As Amended

3.1 Administrative Division/Section;
3.2 Treasury Operations Review Division/Section;
3.3 Cash Division/Section;
3.4 Real Estate Division; and
3.5 Business Tax Division/Section
Figure 2. Organizational Structure of the City Treasurer’s Office
AC s s i s t a n t
Ci t i t y
Ty r e a s u r e r
AT d m i n i s t r a t
ir o n
e
a
s
uu
r
e
r
4. Each division may be divided into sections, provided, that it is in accordance with the
DBM rules and regulations. All these functional divisions are directly under the
supervisions of the City Treasurer/s who may be assisted by one or two Assistant
City Treasurer.
5. The organizational model for the Municipal Treasurer’s Office appears simplest
among the three models. It has only two functional divisions – the cash Division and
the Revenue Division. An Administrative Section provides administrative support to
the operations of the office. Below are some suggested organizational structures of
the treasurer’s Office at the various levels of local governments.
Figure 3. Organizational Structure of the Municipal Treasurer’s Office
CAM s s i s t
au n n t
sMi c ui n i c
hip p a a l
DTl r e a s
iuT r r e r
ve a
is u
ssrr ee
ir
o
n

Chapter 2.QUALIFICATIONS AND APPOINTMENTOF THE LOCAL TREASURER
ANDTHE ASSISTANT TREASURER
Section 4. 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).
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)3
d) The Secretary of Finance may delegatethe appointing authority over Provincial, City and
Municipal Treasurers and their Assistants, with the exception of Treasurers and Assistant
Treasurers in Metro Manila.
Section 5. 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)
Section 6. 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;
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) and471(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 processsubject to civil
service rules and regulations.
3CSC Resolution No. 1000170, dated 06 October 2010

Section 7. Processing of the Appointments of Provincial, City, and Municipal Treasurers
and Assistant Provincial, City, and Municipal Treasurers. – The appointments of the
Provincial, City, or Municipal Treasurer shall be processed as follows:
a) Nomination of at least three ranking eligible recommendees by the Local Chief Executive;
b) Screening/evaluation of at least three recommendees by the respective Selection and

Promotion Boards of the Regional and Central Offices of the BLGF, to determine the best
qualified to the position involved, within thirty (30) days from the receipt of complete
documentary requirements;
c) The evaluation of the additional requirements of the recommendees, shall be in

accordance with the following criteria:
1. Performance Rating – based on the last two (2) Performance Ratings of the
recommendees, which should at least be Very Satisfactory.
2. Work Experience – either in the local treasury or accounting services for at least five
(5) years in the case of Provincial or City Treasurer and Assistant Provincial or City
Treasurer and three (3) years in the case of the Municipal Treasurer and Assistant
Municipal Treasurer.Experience in budgeting, auditing and assessment service may
be considered.
3. Education – at least college degree preferably in Commerce, Public Administration

or Law from a recognized college or university.
4. Eligibility – First Grade civil service eligibility or its equivalent.
5. Relevant Training – includes the successful completion of training courses,

scholarships, training grants and other capacity development interventions relevant to
the duties and functions of the position to be filled-up.
6. Rank – the hierarchy of the position in the organization/office/unit.
7. Other significant factors as may be approved by the Secretary of Finance.
d) Submission of the following required documents:
1. Nomination/Recommendation Letter of the Local Chief Executive;
2. Personal Data Sheet (CSC Form No. 212) with Service Record and copies of
certificate of training attended;
3. Position Description Form (BC-CSC Form I) duly accomplished;
4. Copy of CS Eligibility Rating (Authenticated);
5. Latest approved appointment of the recommendee;
6. Certification of No Pending Administrative Case issued by the BLGF Regional Office

and the BLGF Central Office if the recommendee is a regular or designated
OIC/ICO/Acting Treasurer or Assistant Treasurer. If the recommendee is not a duly
appointed or designated, the said certification should be issued by the office of the
Provincial Governor/City Mayor/Municipal Mayor;

7. Certification of No Relationship to Recommending Authority stating that the
recommendee is not related within the 4 th degree of consanguinity to the
recommending authority;
8. Certificate of Residency issued by the Barangay Chairman and stating his/her good
moral character;
9. Certificate of Availability of Funds (CAF) issued by the Local Accountant. For

Assistant Provincial/City/Municipal Treasurer, the CAF shall be issued by the Local
Treasurer;
10. Certification stating the authorized salary rate, salary grade and item no. of the
plantilla position duly signed by the Human Resource Management Officer (HRMO);
11. Waiver of acceptance of lower salary by the recommendee, if applicable;
12. Approved Plantilla/Personnel Schedule of the local government concerned;
13. Publication of Vacancy (CSC Bulletin/Daily Newspaper/Website) and Certification

from the HRMO of the LGU as to the completion of the posting of Notice of Vacancy
in at least three (3) conspicuous places in the LGU;
14. Status of the regular incumbent, if applicable;
15. Marriage Contract, if applicable;
16. Transcript of Records authenticated by the school/university;
17. Medical Clearance issued by a government hospital (PHO, CHO and MHO);
18. Sworn Statement of Assets, Liabilities and Networth;
19. NBI Clearance (within the validity period);
20. Ombudsman Clearance / Certification with status of pending complaint/case or a

copy of the resolution/decision; and
21. Performance Ratings using the CSC approved Strategic Performance Management
Rating System of the LGU or results from any other performance evaluation tool
instituted by DOF for the last two (2) rating periods prior to the application for the
appointment should at least be Very Satisfactory4 or its equivalent thereof.
22. Certification on eSRE compliance of the LGU issued by the BLGF Central Office.
23. Other documentary requirements as may be required by the CSC and the appointing
authority.
e) In case of modifications in appointment due to conversion of the local government (i.e.,

cityhood, division, merger, etc.), such shall be requested by the local chief executive
concerned and shall be screened and evaluated by the respective Selection and
Promotion Boards of the Regional and Central Offices of the BLGF following the
foregoing procedures and requirements. (adjustment of salary upon conversion of the
LGU and pending issuance of appointment for change of position title)
4 Civil Service Commission Memorandum Circular No. 38 series of 1993

Section 8. Designation of Acting/Officer-In-Charge (OIC)/ Incharge of Office (ICO)
Provincial/City/Municipal Treasurers and Assistant Treasurers. –
a) Delegated authority of the BLGF Regional Directors to designate, subject to the

confirmation of the Secretary of Finance or his/her designated official-
1. A designation order may be issued whenever a vacancy occurs in the positions of

Provincial, City, and Municipal Treasurers and Assistant Provincial, City, and
Municipal Treasurers, whether of a temporary or permanent nature, occasioned by
the following:
1.1 Absence due to official travel, attendance in training, study leave, scholarships,
sick leave, vacation leave, maternity/paternity leave, special assignments, and
other similar circumstances
1.2 Relief due to suspension orders and/or dismissal from the service arising from
audit findings, or decisions of competent authorities on complaints or cases
filed against the incumbent
1.3 Retirement from the service
1.4 Transfer or detail to another station
1.5 Resignation
1.6 Promotion
1.7 Illness or death, or
1.8 Any otherform of sudden incapacity to perform official duties of the regular
incumbent.
2. Designees can only be designated to positions within the level they are currently
occupying. First level personnel cannot be designated to perform the duties of second
level positions(CSC Memorandum Circular No. 06, s. 2005).In special cases where
there is actual dearth of qualified and competent personnel to second level positions,
the next in rank may be considered for designation as last resort.
3. The Regional Director shall designate an Acting/OIC Provincial, City, or Municipal

Treasurer, or an Acting Assistant Treasurer, from the ranks of Provincial/City/Municipal
Treasurers, Assistant Provincial/City/Municipal Treasurers, or the qualified ranking
officials/personnel of Local Treasury Offices, and BLGF Central and Regional Offices,
subject to the confirmation of the Secretary of Finance.
4. The designation of an Acting/OIC-Assistant Provincial/City/Municipal Treasurer or

ActingAssistant Treasurer shall be made upon the written request and
recommendation of the Local Chief Executive concerned.
5. The recommendation for Acting/OIC-Municipal Treasurer or Acting/OIC-Assistant

Municipal Treasurer shall likewise be endorsed by the Provincial Treasurer concerned.
(DOF Department Personnel Order No. 335-03 dated October 1, 2003)

b) Qualifications of the Acting/OIC Provincial/City/Municipal Treasurer and
Acting/OIC-Assistant Treasurers - The proposed designee should meet the following
requirements:
1. Have complied with the minimum qualification requirements of the position pursuant
to the provisions of Sections 470 and 471 of the Local Government Code of 1991
(R.A. 7160)5, except in case of dearth of recommendees,
2. Must belong to the local treasury service over which the Secretary of Finance,
through the Bureau of Local Government Finance, exercises administrative and
technical supervision;
3. Must have completed or passed any additional competency standards instituted by

the Department of Finance (DOF), whether implemented directly by the DOF or by an
appropriate national government agency in partnership with the DOF; and
4. In the absence of qualified and ranking personnel from the Local Treasury Office, the
ranking and qualified personnel from the local Accounting or Budget Offices(include
assessment office), other related local offices,or BLGF Central or Regional Offices
may be considered, but they must first be detailed by the appointing authority
concerned to the Local Treasury Office to which the recommendee will be assigned
before the designation as Acting/OIC can be effected.
c) Consent/Approval of Local Chief Executives Required for Designations – The

designation of Acting/OIC Provincial/City/Municipal Treasurers and Acting/OIC-Assistant
Provincial/City/Municipal Treasurers shall require the prior written consent/approval of the
Local Chief Executives concerned. In case of designation in other local treasury offices,
the same requirement shall apply for the Local Chief Executives of both LGUs where the
designate comes from and where said designate is being designated, whether on detail
or in concurrent capacity, particularly as regards the continued payment of the salaries
and other benefits of the designee by the LGU where he/she is regularly appointed, and
the subsequent return to his/her regular station once deemed necessary, and in the
absence of any legal impediment.(DOF Department Personnel Order No. 335-03, 1
October 2003)
d) Requirements for Relief, Transfer or Detail of Treasurers and Assistant Treasurers

–Requests for relief, transfer, or detail of Treasurers and Assistant Treasurers shall be
acted only for justifiable reasons and after compliance with the requisites of due process,
as follows:
1. There exists a final audit finding of cash shortage properly validated by the Regional
Director and/or his duly authorized representative and the Treasurer is ordered
suspended pursuant to Section 348 of R.A. 7160 otherwise known as the Local
Government Code of 1991;
2. The Treasurer has been formally charged with grave offense and the ninety (90)-day
preventive suspension has expired, but formal investigation has not yet been
terminated. (DOF Department Personnel Order No. 335-03, 1 October 2003);and
3. The Treasurer consents thereto, in case of detail only.
e) Period of Designation -
1. Permanent Vacancy
5See Sec. 6, this Manual

Vacancies due to retirement, resignation, transfer, death, dismissal from the service
which is final and other modes of separation which is permanent in nature may be
temporarily filled-up through the designation of an Acting Treasurer/Assistant
Treasurer for a non-extendable period of one (1) year unless sooner revoked, except
under the following conditions:
1.1 When the filling up of the vacant position held by the designee is in process
and the Acting Treasurer is considered for the position;
1.2 When there is an actual dearth of personnel to be designated;
2. Temporary Vacancy
2.1 Vacancies due to relief/suspension, leave of absence and official travel exceeding
seven (7) working days, dismissal from the service which is not final,detail to
other station, and other form of sudden incapacity to perform official duties may
be temporarily filled-up through the designation of an Officer-in-Charge (OIC) for
a period covering the absence of the regular incumbent but nor more than one
(1) year.
2.2 In cases where the position is deemed vacant in view of an executory, but not
final order of dismissal of the incumbent treasurer, the designation may be
renewed every year thereafter, subject to the consent of the designee and of the
concerned Local Chief Executive.
2.3 The incumbent or duly designated local treasurer may designate an Incharge-of-
Office (ICO) who is an official or employee from within the local treasury office
authorized, in a temporary capacity to discharge the duties and functions of the
incumbent in a caretaker capacity for a maximum of seven (7) working days, and
with certain limitations of the powers and authority normally exercised by the
head of the office.
Responsibilities in caretaker capacity shall be confined only to day-to-day

operations and administrative functions of the office to avoid disruption or
paralysis of the same with the temporary absence of the head of office, such as
signing authority over recurring transactions, and mandatory or statutory
obligations of the local government unit concerned. Such Order of Designation
shall be noted by the Local Chief Executive concerned, copy furnished the BLGF
Regional Office for records purposes, without need for confirmation by the
Secretary of Finance.
2.4The designation of an OIC shall automatically terminate upon the return to duty of
the regular incumbent, which should beexplicitly stated in the Order of
Designation issued by the proper authority. In extension may be authorized upon
proper representations made and under meritorious circumstances.
3. The Order shall specifically state the effectivity and expiration dates thereof.
4. It shall be the duty of the BLGF Regional Director concerned to ensure that expiring
designations are properly monitored and immediately acted upon.
f) Extension of Designation as Acting or OIC Provincial/City/Municipal Treasurer and

Acting/OIC-Assistant Treasurer– Extension of designation of an Acting or OIC
Treasurer need not require the written request and recommendation by the Local Chief
Executive, except as requested otherwise, and conditioned by a very satisfactory
performance of the designee during the period of designation attested to by the

immediate supervisor, and the absence of any derogatory report and/or adverse
information against the designee received and verified by the Regional Office or the
Local Treasury Office.6 Each extension of designation shall be for a period of six (6)
months, unless sooner revoked.
g) Processing and Submission of Designation– Except in vacancies caused by the

sudden illness, death or absconding of the incumbent, designations and extensions
thereof shall be processed by the Regional Office within fifteen (15) days before the
expected temporary or permanent vacancy7 and submitted to the BLGFCentral
Officewithin fifteen (15) days from the issuance of the Order. Non-submission of the
Order for confirmation and/or non-compliance thereof will render subject Order
ineffective.
h) Confirmation of Designation by the Secretary of Finance – Designations submitted

by the Regional Director for confirmation shall be acted upon by the Secretary of
Financeor his/her duly authorized confirming official within fifteen (15) days from receipt
thereof, otherwise, subject designation is deemed approved.
i) Documentation – Designations submitted to the DOF, through the BLGF Central Office,
for confirmation shall be supported by the following documents:8
1. Regional Special Personnel Order (RSPO) issued by the BLGF Regional Director;
2. Comments/Recommendations of the BLGF Regional Director contained in an

endorsement;
3. Written endorsementof the Provincial Treasurer, in the case of the Acting/OIC

-Municipal Treasurer and Acting/OIC- Assistant Municipal Treasurer;
4. Written request and recommendation of the Local Chief Executive(s) concerned;
5. Updated Personal Data Sheet, as prescribed by the CSC;
6. Copy of the plantilla of the local treasury office of the LGU concerned;
7. Justification in case the most ranking personnel in the treasury office was not
considered. In cases where there is no eligible personnel, a list of personnel in the
treasury office indicating their respective civil service eligibilities should be attached;
8. Authenticated Civil Service Eligibility by the Civil Service Commission (CSC) or its
equivalent;
9. Sworn Statement of Assets and Liabilities of the immediate preceding year; and
10. Performance Ratings using the CSC-approved Strategic Performance Rating System
of the LGU or results from any other performance evaluation tool instituted by the
DOF, applied during the period of designation,should at least be Very Satisfactory or
its equivalent thereof.
Section 9. Distinction of Designations as ActingTreasurerand Officer-in-Charge (OIC). –
a) ActingTreasurer/Assistant Treasurer -
6 Ibid, (6).
7DOF Personnel Order No. 335-03 (7), 1 October 2003
8Ibid, (9).

1. An Acting Treasurer is an official or employeeof the local government unit concerned
who is designatedby the proper authority to discharge fully the powers and
responsibilities as head of the Provincial, City or Municipal Treasury Office, as a
result of permanent vacancy of the position, with the same rights and prerogatives of
the latter, except the right to receive the salary appurtenant thereto. 9Provided, that
such designation shall be made only if the designee already possess the minimum
qualifications required for the position at the time of designation.
2. An Acting Assistant Treasurer is an official or employee of the local government unit

concerned who is designated by the proper authority to discharge fully the powers
and responsibilities of an Assistant Provincial/City/Municipal Treasurer, as a result of
permanent vacancy of the position, with the same rights and prerogatives of the
latter, except the right to receive the salary appurtenant thereto. 10Provided, that such
designation shall be made only if the designee already possess the minimum
qualifications required for the position at the time of designation.
3. An Acting Provincial/City/Municipal Treasurer or Assistant Treasurer may receive per

diems at a rate authorized under existing rules and regulations.
4. During the incumbency of the Acting Provincial/City/Municipal Treasurer or Assistant

Treasurer, he/she shall be entitled to collect the representation allowances authorized
for the vacant position of Provincial/City/Municipal Treasurer or Assistant Treasurer.
b) Officer-in-Charge (OIC) -
1. An OIC is an official or employeedesignated by proper authority in a temporary

capacity to avert paralyzation of the day to day operations of the office in the
meantime that the Provincial, City or Municipal Treasureris temporary absent (CSC
Resolution No. 000778 dated March 24, 2000).Provided, that such designation shall
be made only if the designee already possess the minimum qualifications required for
the position at the time of designation.
2. An OICProvincial/City/Municipal Treasurer may receive per diems at a rate

authorized under existing rules and regulations.
3. During the incumbency of the OIC-Provincial/City/Municipal Treasurer, he/she shall

be entitled to collect the representation allowances authorized for the vacant position
of Provincial/City/Municipal Treasurer.
Section 10. Automatic Succession of the Assistant Provincial/City/Municipal Treasurer as

Acting/OIC/ICOProvincial/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)
b) The regularly appointed Assistant Provincial/City/Municipal Treasurer who automatically

assumes as Acting o OICProvincial/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.
9 Section 7.6, Local Administrative Regulations No. 1-85, February 7, 1985, Ministry of Finance
10 Section 7.6, Local Administrative Regulations No. 1-85, February 7, 1985, Ministry of Finance

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.
Section 11. 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. The policies and procedures set under Section 10 and
Section 12 shall be adopted.
Section 12. 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.
c) Detail shall be allowed only for a limited period in the case of employees occupying
professional, technical and scientific position. If the employee believes that there is no
justification for the detail, he may appeal his case to the Civil Service Commission.
Pending the appeal, the decision to detail the employee shall be executory unless
otherwise ordered by the Commission. (Sec. 8, Rule VII, Omnibus Rules Implementing
Book V of E. O. No. 292, Revised Administrative Code of 1987 and Other Pertinent Civil
Service Laws)
d) 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 of 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)
3. Clearance and approval of the Civil Service Commission shall be required for details
or temporary assignment requiring a period exceeding one (1) year and involving the
performance of regular and recurring functions in the agency where the Local
Treasurer or Assistant Local Treasurer is to be detailed. (Sec. 216, Vol. I, GAAM)
4. 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)

Section 13. Salaries of Local Treasurers and Assistant Local Treasurers under Preventive
Suspension. –
a) The Department of Finance, the Office of the Ombudsman andthe Civil Service
Commission who have concurrent administrative disciplinary authorities may preventively
suspend any Local Treasurer and Assistant Local Treasurer, pending an investigation, if
the charge against such officer or employee involved dishonesty, oppression or grave
misconduct, or neglect in the performance of duty, or if there are reasons to believe that
the respondent is guilty of charges which would warrant his/her removal from office. 11
b) Any public officer against whom any criminal prosecution under a valid information under
R.A. 2019 otherwise known as the Anti-Graft and Corrupt Practices Act or under the
provisions of the Revised Penal Code on bribery is pending in court, shall be suspended
from office. Should he/she be convicted by final judgment, he/she shall lose all
retirement gratuity benefits under any law, but if he/she is acquitted, he/she shall be
entitled to reinstatement and to the salaries and benefits which he/she failed to receive
during suspension, unless in the meantime administrative proceedings have been filed
against him/her.12
c) The Secretary of Finance through the BLGF Executive Director may temporarily relieve
or suspend Provincial, City and Municipal Treasurers and their Assistants 13, concurrently
with the Civil Service Commission14 and the Office of the Ombudsman15, pending
administrative investigation.
d) Other provisions applicable on the salaries of Local Treasurers and Assistant Local
Treasurers under preventive suspension:
1. When the administrative case against the officer or employee under preventive
suspension is not finally decided by the disciplining authority within the period of 90
days after the date of suspension of the respondent who is not a presidential
appointee, the responded shall be automatically reinstated in the service: Provided,
that when the delay in the disposition of the case is due to the fault, negligence or
petition of the respondent, the period of delay shall not be counted in computing the
period of suspension herein provided.16
2. A local treasurer who is reinstated after having been illegally dismissed is considered
as not having left his/her office and should be given comparable compensation at the
time of his reinstatement in an amount not exceeding five (5) years’ salary regardless
of whether the period of illegal dismissal exceeds five (5) years. Such Treasurer
cannot be faulted for his inability to work or render any service as a result of his
illegal dismissal because this was not his/her own making or liking. If dismissal was
due to bad faith or personal malice or superior officers, they (superior officers) will be
held accountable for the Local Treasurer’s back wages.17
3. The death of a respondent Treasurer terminates the administrative proceedings

against him/her and entitled his/her heirs to all the benefits due him/her together with
11 Section 51, Title I, Subtitle A, Book V, E.O. 292

12 Sec. 13, R.A. 3019 otherwise known as the Anti-Graft and Corrupt Practices Act
13 DOF Order No. 305-2000, October 27, 2000, as amended by DOF Personnel Order no. 321-2000, November 17, 2000
14 Section 29, Rule XIV, Omnibus Rules Implementing Book V of E.O. No. 292 and Other Pertinent Civil Service Laws
15 Section 24, R.A. 6770 otherwise known as the Ombudsman Act of 1989
16 Section 52, Book V(A), 1987 Adm. Code; Sec. 42, PD 3019)
17 Gabriel vs. Hon. Eufemio C. Domingo, G.R. No. 87420, September 17, 1990

his/her unpaid salaries from the date of his/her suspension to the date of his/her
death.18
4. Claims for salaries during preventive suspension shall be supported by the following
documents:
4.1 A certified true copy of the order of exoneration or of the court’s order dismissing
the criminal case against the employee or absolving him/her; or
4.2 A certified true copy of the authority granted by the department head for the
payment of salary during suspension; or
4.3 A certified true copy of the President’s order of exoneration providing for
payment of salary during suspension.19
Section 14. Salaries of Local Treasurers and Assistant Local Treasurers

duringAttendance in Administrative, Civil or Criminal Investigation. –Absence of a Local
Treasurer or Assistant Local Treasurer is considered service in regular course under the
following circumstances:
A. Witness in a criminal case. - When a Local Treasurer or Assistant Local Treasurer is

summoned by the court or is required by lawful authority to render service as a witness in a
criminal case, such service shall be deemed to be of service in the regular course of
employment and the Local Treasurer or Assistant Local Treasurer shall be entitled to his
salary during the period of such service payable by the office to whichhe/she pertains,
regardless of whether he has served for or against the prosecution in such criminal case.
(Sec. 226 (a), Vol. I, GAAM)In case the hearing or trial is conducted outside the LGU
where the Local Treasurer or Assistant Local Treasurer is stationed, he shall
automatically be on official travel and shall beentitled to per diem and transportation
expenses, subject to the usual accounting and auditing rules and regulations. The
summons of the Court shall be considered sufficient supporting documentation in lieu of a
Travel Order.
B. Witness in his own behalf in a criminal or administrative proceeding. - The

attendance of a Local Treasurer or Assistant Local Treasurer in his own behalf, to secure
his/her exoneration from charges or matter alleged against him/her is attendance to
his/her own benefit. If he/she is not under suspension, the time consumed in such
attendance shall be charged to his leave, if he/she has any. Upon exoneration, however,
when the case in which he/she is the accused or the respondent is the direct result of an
act performed by him/her in connection with his official duties, his/her absence charged to
his/her leave may be readjusted and his/her attendance in court considered as service in
due course. But when the criminal charges filed are not the direct act performed by him/her
in connection with his/her official duties, forced absences from duty resulting from his/her
arrest and required attendance in court may not be considered official. He/She shall not in
such case be entitled to salary.
C. Witness in a civil case between two private parties, and in which the Government
has no interest. -A witness is not obliged to attend as such in a civil action before any
court, judge, justice, or other officer out of the province in which he/she resides, unless the
distance be less that fifty (50) kilometers from his/her place of residence to the place of trial
by the usual course of travel. Therefore, a Local Treasurer or Assistant Local Treasurer
cited to appear in a civil case between two private parties wherein the Government has no
interest, in order to testify as to knowledge of fact obtained by him/her in his official
capacity, shall not be entitled to salary for absence on account of such appearance if the
18 4 Indorsement, CSC, March 17, 1956

th
19 Section 220, Volume I, Government Accounting and Auditing Manual (GAAM)

distance from his/her place of residence to the place of trial by the usual course of travel be
more than fifty (50) kilometers. If the distance involved is less than fifty (50) kilometers, and
the Local Treasurer or Assistant Local Treasurer is cited as a witness in a civil case
involving private persons as litigants for knowledge or fact acquired by him/her in
his/herprivate capacity, his absence will be chargeable against him/her without prejudice to
his/her right to seek reimbursement from the party at whose instance he testified. if such
witness testifies on a case from knowledge or fact acquired by him/her in his/her official
capacity, or to produce official papers or documents, and the distance between his/her
place of residence and the place of trial is less than fifty (50) kilometers, his/her
appearance will be considered service in due course, but in such a case the province, city
or municipality to which he/she pertains shall collect witness' fees for his/her appearance
under the conditions prescribed by the Rules of Court. (Sec. 226, Vol. I, GAAM)
Section 15. Approval and Grant of Application for Leave of Absence of Local Treasurers
and Assistant Local Treasurers. – The approval of application for leave of Provincial, City and
Municipal Treasurers and Assistant Provincial, City and Municipal Treasurers shall be as follows:
a) All applications for leave of absence, i.e. vacation, sick, maternity/paternity, and special
privilege leave and terminal leave of Provincial/City/Municipal Treasurer and Assistant
Provincial/City/Municipal Treasurer, regardless of duration of period of absence, shall be
filed and approved by the BLGF Regional Director, copies of which shall be furnished to
the BLGF Central Office.
b) Where the applicant intends to leave the country, the application for leave and the
issuance of travel authority shall be approved by the Department of Finance, regardless
of the duration.
c) Application for leave of Provincial/City/Municipal Treasurer exceeding seven(7) days

shall be supported by a request for the designation of an Acting or OIC Treasurer from
the LCE concerned. Likewise, the LCE concerned shall recommend the approval of said
application for leave.
d) Application for leave of Assistant Provincial/City/Municipal Treasurer for a period

exceeding fifteen (15) days shall be approved by the BLGF Regional Director.
Application for leave for a period of seven(7) days and below shall be approved by the
Provincial/City/MunicipalTreasurer, a copy of which shall be furnished the BLGF
Regional Director for proper information.
e) Provincial/City/Municipal Treasurer and Assistant Treasurer shall be entitled to special

privilege leave (SPL) as mandated under existing laws (Sec. 21, Rule XV1, Omnibus
Rules Implementing Book V of E.O. No.
292).Likewise,Provincial/City/Municipal TreasurerandAssistantTreasurer may avail of
maternity or paternity leave of not more than seven (7) days which shall be non-
cumulative and non-commutative, immediately before, during or after the childbirth or
miscarriage of their legitimate spouse. (Sec. 20, Omnibus Rules Implementing Book V
of E.O. No. 292, as amended by CSC Memorandum Circular No. 41, s. 1998)
f) The special privilege leave to which the Provincial/City/Municipal Treasurer and

Assistant Provincial/City/Municipal Treasurer shall be entitled to are the following:
1. Funeral/Mourning Leave
2. Graduation Leave
3. Enrollment Leave
4. Wedding/Anniversary Leave

5. Birthday Leave
6. Hospitalization Leave
7. Accident Leave
8. Relocation Leave
9. Government Transaction Leave
10. Calamity Leave
g) A maximum of three (3) days within a calendar year or a combination of the special
leave privileges of their choice may be availed of by the Provincial/City/Municipal
Treasurer and the Assistant Provincial/City/Municipal Treasurer. The SPL may be availed
of by the Provincial/City/Municipal Treasurer and the Assistant Treasurer when the
occasion is personal to them or that of their immediate family members.
h) WheneveraProvincial/City/MunicipalTreasureroranAssistantTreasurer retires, voluntarily

resigns, or is allowed to resign, or is separated from the service through no fault of his
own, he/she shall be entitled to the commutation of all accumulated vacation leave
and/or sick leave to his/her credit, exclusive of Saturdays, Sundays and holidays,
without limitation as to the number of days of vacation leave and sick leave that he/she
may accumulate provided his/her leave benefits are not covered by special law. (Sec.
26, Rule XVI, Omnibus Rules Implementing Book V of E.O. No. 292, as amended by
CSC Memorandum Circular No. 41, s. 1998)
i) When a Provincial/City/Municipal Treasurer or an Assistant Provincial/City/Municipal

Treasurer whose leave credits have been commuted following his/her separation from
the service is re-employed in the Government before the expiration of the leave
commuted, he/she shall no longer refund the money value of the unexpired portion of
his/her leave. Insofar as his/her leave credit is concerned, he/she shall start from a zero
balance in his/her new government office. (Sec.26, Rule XVI of Omnibus Rules
Implementing Book V of E, O. No. 292, as amended by CSC Memorandum Circular No.
41, s. 1998)
j) A Provincial/City/Municipal Treasurer or an Assistant Provincial/City/Municipal Treasurer

who has accumulated at least fifteen (15) days’ vacation leave credits shall be allowed
to monetize a minimum of ten (10) days; provided, that at least five (5) days are retained
after monetization and, provided further, that a maximum of thirty (30) days may be
monetized in a given year. (Sec. 22, Rule XVI of Omnibus Rules Implementing Book V
of E.O. No. 292, as amended by CSC Memorandum Circular No. 41, s. 1998)
k) A Provincial/City/Municipal Treasurer or an Assistant Provincial/City/Municipal Treasurer

may be allowed to monetize fifty percent (50%) or more of his/her accumulated vacation
or sick leave credits for valid and justifiable reasons such as the following:
1. Health, medical and hospital needs of the Provincial/City/Municipal Treasurer or the

Assistant Provincial/City/Municipal Treasurer or the immediate members of his/her
family;
2. Financial aid or assistance brought about by force majeure events such as

calamities, typhoons, fire, earthquakes and accidents;
3. Educational needs of the Provincial/City/Municipal Treasurer or the Assistant

Provincial/City/Municipal Treasurer or the immediate members of his/her family;

4. Payment for mortgages and loans entered into for the benefit of the
Provincial/City/Municipal Treasurer or Assistant Provincial/City/Municipal Treasurer
or the immediate members of his/her family; and
5. Extreme financial needs of the Provincial/City/Municipal Treasurer or Assistant

Provincial/City/Municipal Treasurer or the immediate members of his/her family to
fulfill basic needs for food, shelter and clothing.
l) The monetization of fifty percent (50%) or more of the accumulated leave credits shall
be upon the favorable recommendation of the LCE and subject to availability of funds.
(Sec. 23, Omnibus Rules Implementing Book V of E.O. No. 292, as amended by CSC
Memorandum Circular No. 41, s. 1998).
m) A Provincial/City/Municipal Treasurer or an Assistant Provincial/City/Municipal Treasurer

with ten (10) days or more vacation leave credits shall be required to go on vacation
leave whether continuous or intermittent for a minimum of five (5) working days annually.
(Sec. 25, Omnibus Rules Implementing Book V of E.O. No. 292, as amended by CSC
Memorandum Circular No. 41, s. 1998)
Chapter 3. ROLES, DUTIES, AND RESPONSIBILITIES OF THE LOCAL TREASURER
Section 16. 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;
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.
(Sec 470, LGC)
i) The assistant treasurer shall assist the treasurer and perform such duties as the latter
may assign to him/her. He/She shall have authority to administer oaths concerning
notices and notifications to those delinquent in the payment of real property tax and

concerning official matters relating to the accounts of the treasurer or otherwise arising in
the offices of the treasurer and the assessor. (Sec. 471(c), LGC)
j) In case of the absence of the Local Treasurer for more than seven (7) working days, the
Assistant Treasurer shall automatically perform the functions of the former and shall be
fully responsible therefor until the designation of an Acting or Officer-In-Charge (OIC) by
the DOF, through the BLGF.
k) Specific Functions:
1. Certify as to the Availability of Funds – No money shall be disbursed unless the

local budget officer certifies to the existence of the appropriation that has been legally
made for the purpose, the local accountant has obligated said appropriation, and the
local treasurer certifies the availability of funds for the purpose 2021. It is the primary
duty of the local treasurer to certify to the availability of funds prior to all
disbursements from the local treasury, in conjunction with the certification of the local
budget officer on the existence of an appropriation for the purpose and the
certification of the local accountant on the obligation for the appropriation.
2. Implement Tax Collection and Enforcement Program – The Local treasurer is

vested by law to collect and receive all monies accruing to their respective
jurisdictions whether in the form of collectible taxes and other revenues or trust funds
pertaining to other branches or units of government.
3. Prepare and Submit Reports – The Local Treasurer shall prepare and submit daily
report of collections, with the supporting document. Likewise, the Local Treasurer
shall accomplish and submit quarterly report of Statement of Receipts and
Expenditures (SRE), and other reports in forms prescribed by the BLGF/DOF.
4. Certify RPT Delinquencies Remaining Uncollected – The provincial, city or

municipal treasurers or his/her deputy shall prepare a certified list of all real property
tax delinquencies which remained uncollected or unpaid for at least one (1) year in
his/her jurisdiction, and a statement of the reason for such non-collection or non-
payment and shall submit the same to the sanggunian concerned on or before the
thirty-first (31st) of December of the year immediately succeeding the year in which
the delinquencies were incurred, with a request for assistance in the enforcement of
the remedies for collection provided in the Local Government Code of 1991.(Sec.
269, LGC)
5. Examine the Books of Accounts and Pertinent Records of Businessmen– The

provincial, city, municipal or barangay treasurer may by himself/herself or through
any of his/her deputies duly authorized in writing, examine the books, accounts, and
other pertinent records of any person, partnership, corporation, or association subject
local taxes, fees and charges in order to ascertain, asses, and collect the correct
amount of the tax, fee, or charge. Such examination shall be made during regular
business hours, only once for every tax period, and shall be certified to by the
examining official. Such certificate shall be made of record in the books of accounts
of the taxpayer examined.
In case the examination herein authorized is made by a duly authorized deputy of the
local treasurer, the written authority of the deputy concerned shall specifically state
the name, address, and business of the taxpayer whose books, accounts, and
pertinent records are to examined, the date and place of such examination, and the
procedure to be followed in conducting the same.
20 Ibid, Sec. 344, LGC

21 COA Circular No. 2006-002, January 31, 2006

For the purpose, the records of the revenue district office of the Bureau of Internal
Revenue shall be made available to the local treasurer, his deputy of duly authorized
representative. (Sec. 171, LGC)
6. Submit Certified Statement Covering Income and Expenditures– The Local

Treasurer shall submit, on or before the fifteenth (15 th) day of July each year, to the
LCE a certified statement covering the income and expenditures of the preceding
fiscal year, the actual income and expenditures of the first two (2) quarters of the
current year and the estimated income and expenditures for the last two (2) quarters
of the current year. All statements of income and expenditure shall be jointly certified
by the Local Treasurer and the Local Accountant.
7. Issue a Certified Statement Covering Actual Income – On or before the fifth (5 th)
day of September each year, the City or Municipal Treasurer, jointly with the City or
Municipal Accountant, shall issue a certified statement covering the actual income of
the past year and the estimates of income of the current and ensuing fiscal years
from local sources, for the barangay concerned. Based on such certified statement,
the barangay treasurer shall submit, on or before the fifteenth (15 th) day of
September each year, to the punong barangay a statement covering the estimates of
income and expenditures for the past, current and ensuring fiscal years.(Art. 423 (b),
IRR, LGC)
Upon receipt of the statement of income and expenditures from the barangay
treasurer, the punong barangay shall prepare the barangay budget for the ensuing
fiscal year in the manner and within the period prescribed in the Implementing
barangay budget to the sangguniang barangay for enactment.(Art. (c), IRR, LGC)
8. Keep Full Sets of Secondary Standards for Use in the Testing of Weights and
Measures – On the sealing of weights and measures, Municipal Treasurers shall
keep full sets of secondary standards in their offices for use in the testing of weights
and measures. These secondary standards in their offices for use in the testing of
weights and measures. These secondary standards shall be compared with the
fundamental standards of the Department of Science and Technology (DOST) at
least once a year. The sealing and licensing of weights and measures shall be the
duty of Municipal Treasurer and their deputies. In case of violation, fraudulent
practices and unlawful possession or use of instruments of weights and measures,
shall settle an offense involving the commission of fraud before a case therefore is
filed in court, upon payment of a compromise penalty of not less than Two Hundred
Pesos (P200.00).
9. Register in a Book All Branded and Counter Branded Animals – On cattle

registration, the Municipal Treasurer shall register in a book properly prepared and
kept for the purpose, all branded and counter branded animals presented for registry,
and shall enter the name and residence of the owner, and the class, color, sex, age,
brand, knots of radiated hair and other marks of identification of the cattle registered.
The original registry entry and the copy thereof issued as a certificate of ownership
shall be signed by the owner and the Municipal Secretary. 22
Upon every transfer of large cattle, the Municipal Treasurer shall issue to the
purchaser of the animal a certificate of transfer showing the name and residence of
the owner/vendor, name and residence of the buyer, purchase price, identification
marks of the animal and the reference to the original certificate of ownership by
number and the name of municipality which issued the certificate.
22 Section 517, Revised Administrative Code of the Philippines

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 – The Local Treasurer shall see to it that the payment of taxes of a
business is not avoided through simulation of the termination or retirement thereof.
For this purpose, the Local Treasurer shall observe as follows:
10.1 Assign every application for the termination or retirement of a business to an

inspector from the Local Treasury Office who shall proceed to the address on
record of the business to verify if it is no longer operating. If the inspector finds
that the business is simply placed under a new name, manager and/or a new
owner, the Local Treasurer concerned shall recommend to the LCE for the
disapproval of the application for termination or retirement of the business.
Accordingly, the business shall continue to be liable for the payment of all
taxes, fees and charges imposed thereon under existing local tax ordinances;
and
10.2 In the case of a new owner to whom the business was transferred by sale or
other form of conveyance, said new owner shall be liable to pay the tax or fee
for the transfer to him/her of the business if there is an existing ordinance
prescribing such transfer tax. 23
11. Attend Sessions of the Sanggunian – The Local Treasurer, when required and
upon prior approval of the local chief executive, shall attend the sessions of the
sanggunian.(Section 470(e), LGC)
12. Exercise Such Other Powers and Functions and Perform Such Other Duties
and Responsibilities – The Local Treasurer shall exercise such other powers and
functions and perform such other duties and responsibilities as may be prescribed by
law or ordinance, as follows:
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.
12.3 Members of the following Local Committees and Boards:
i. Local Finance Committee
ii. Local School Boards 24
iii. Appraisal Committee (for purposes of expropriation and purchase of real

property)
12.4 Duties and functions under the omnibus Election Code25
Section 17. The Local Treasurer's Role in Boards and Committees Created Pursuant to the
LGC and Other Laws. –
a) Local Finance Committee (LFC) -
23 Notes on Sec. 145, LGC, p. 120, Philippine Law on Local Government Taxation, Annotated, 2000 Edition, Sofronio B. Ursal
24 Section 98 (a), R.A. 7160 otherwise known as the Local Government Code of 1991
25 E.O. 144, 2 March 1987

1. It is mandatory for every province, city, or municipality to create a Local Finance
Committee (LFC) which shall be composed of the following:
1.1. Local Treasurer
1.2. Local Planning and Development Officer
1.3. Local Budget Officer
2. The LFC shall exercise the following functions:
2.1. Determine the income reasonably projected as collectible for the ensuing
fiscal year;
2.2. Recommend the appropriate tax and other revenue measures or

borrowings which may be appropriate to support the budget;
2.3. Recommend to the LCE concerned the level of the annual expenditures
and the ceilings of spending for economic, social and general services
based on the approved local development plans;
2.4. Recommend to the LCE concerned the proper allocation of expenditures for
each development activity between current operating expenditures and
capital outlays;
2.5. Recommend to the LCE concerned the amount to be allocated for capital
outlay under each development activity or infrastructure project;
2.6. Assist the “sangguniang panlalawigan” in the review and evaluation of

budget of component cities and municipalities in the case of provincial
finance committee, the barangay budgets in the case of city or municipal
finance committee, and recommend the appropriate action thereon;
2.7. Assist the “sanggunian” concerned in the analysis and review of annual
regular and supplemental budgets of the respective LGU to determine
compliance with statutory and administrative requirements; and
2.8. Conduct semi-annual review and general examination of cost and

accomplishments against the performance standards applied in undertaking
development projects.A copy of this report shall be furnished the LCE and
the “sanggunian” concerned, and shall be posted in conspicuous and
publicly accessible places in the Provinces, Cities, Municipalities and
“barangays”.
(Sec. 316, LGC).
b) Local School Boards (LSB) -There shall be established in every province, city, or
municipality a provincial, city, or municipal school board. The composition of the local
school boards shall be as follows:
1. The Provincial School Board shall be composed of the Governor as Chairperson and
the Division Superintendent of Schools as Co-Chairperson; the Chairperson of the
Education Committee of the “sangguniang panlalawigan”, the Provincial Treasurer,
the representative of the “pederasyon ng mga sangguniang kabataan” in the
“sangguniang panlalawigan”, the duly elected President of the Provincial Federation
of Parents-Teachers Associations, the duly elected representative of the teachers'

organizations in the province, and the duly elected representative of the non-
academic personnel of public schools in the province, as members;
2. The City School Board shall be composed of the City Mayor as Chairperson and the
City Superintendent of Schools as Co-Chairperson; the Chairperson of the education
committee of the “sangguniang panlungsod”, the City Treasurer, the representative
of the “pederasyon ng mga sangguniang kabataan” in the “sangguniang panlungsod”,
the duly elected President of the City Federation of Parents-Teachers Associations,
the duly elected representative of the teachers' organizations in the city, and the duly
elected representative of the non-academic personnel of public schools in the city, as
members; and
3. The Municipal School Board shall be composed of the Municipal Mayor as

Chairperson and the District Supervisor of Schools as Co-Chairperson; the
Chairperson of the Education Committee of the “sangguniang bayan”, the Municipal
Treasurer, the representative of the “pederasyon ng mga sangguniang kabataan” in
the “sangguniang bayan”, the duly elected President of the Municipal Federation of
Parents-Teachers Associations, the duly elected representative of the teachers'
organizations in the municipality, and the duly elected representative of the non-
academic personnel of public schools in the municipality, as members. (Sec. 98-a
and b, LGC)
The performance of the duties and responsibilities of the abovementioned officials in

their respective local school boards shall not be delegated.(Sec. 98, LGC)
4. The Provincial, City and Municipal School Boards shall have the following functions;
4.1 Determine, in accordance with the criteria set by the Department of Education,
Culture and Sports (now Department of Education or DepEd), the annual
supplementary budgetary needs for the operation and maintenance of public
schools within the province, city, or municipality, as the case may be, and the
supplementary local cost of meeting such needs, which shall be reflected in the
form of an annual school board budget corresponding to its share of the
proceeds of the special levy on real property constituting the Special Education
Fund (SEF) and such other sources of revenue as the LGC , and other laws
and ordinances may provide;
4.2 Authorize the Provincial, City or Municipal Treasurer, as the case may be, to
disburse funds from the SEF pursuant to the budget prepared and in
accordance with existing rules and regulations;
4.3 Serve as an advisory committee to the “sanggunian” concerned on educational

matters such as, but not limited to, the necessity and uses of local
appropriations for educational purposes; and
4.4 Recommend changes in the names of public schools within the territorial
jurisdiction of the local government unit for enactment by the “sanggunian”
concerned.
(Sec. 99, LGC).
4.5 The Co-Chairperson and Members of the Provincial, City or Municipal School
Board shall perform their duties as such without compensation or remuneration.
Members thereof who are not government officials or employees shall be
entitled to necessary travelling expenses and allowances chargeable against
the funds of the local school board concerned, subject to existing accounting
and auditing rules and regulations. (Sec. 101, LGC)

c) Bids and Awards Committee (BAC) -
1. The Bids and Awards Committee (BAC)of the Province, City or Municipality
decides the winning bids and questions of awards on procurement of property
and services.
2. Under Republic Act No. 9184, membership of the local treasurer in the BAC is not
mandatory. The BAC shall be composed of one (1) representative each from the
regular offices under the Office of the Local Chief Executive such as but not
limited to the following: Offices of the Administrator, the Budget Officer, the Legal
Officer, the Engineering Office, and the General Services Office. The end user
office shall always be represented in the BAC. The BAC members shall be at
least five (5) but not more than seven (7) and who shall be personnel occupying
plantilla positions of the LGU. The Local Chief Executive shall designate the
members of the BAC who shall elect among themselves the Chairman and Vice-
Chairman. In no case shall the LCE and /or appointing authority be the Chairman
or member of the BAC.(Sec. 11.2.2, IRR, R.A. No. 918426, Rule V)
3. The BAC shall have the following functions:
3.1 Advertise and/or post the invitations to bid;
3.2 Conduct pre-procurement and pre-bid conferences;
3.3 Determine the eligibility of prospective bidders;
3.4 Receive bids and conduct the evaluation of bids;
3.5 Undertake post-qualification proceedings;
3.6 Resolve motions for reconsideration; and
3.7 Recommend award of contracts to the LCE or authorized representative.
4. The BAC shall also prepare the procurement monitoring report covering all
procurement activities specified in the Annual Procurement Plan (APP), whether
ongoing and completed, costing Fifty Million Pesos ( ₱50,000,000.00) and above
for goods and infrastructure projects, and Five Million Pesos ( ₱5,000,000.00) and
above for consulting services. The report shall cover all activities from pre-
procurement conference to the issuance of notice of award and approval of
contract. The report shall be approved by the head of the procuring entity, and
submitted to the Government Procurement Policy Board (GPPB) in printed and
electronic format within ten (10) working days after the end of each semester. The
GPPB is an inter-agency board created under the Government Procurement
Reform Act or R. A. No. 9184, chaired by the Secretary of the Department of
Budget and Management to formulate and amend the IRR and the corresponding
standard forms for Procurement, ensure the regular conduct by government
entities of procurement training, preparation of procurement operations manual
for all government agencies, and conduct annual review of the effectiveness of
the Procurement Law and recommend amendments thereto as necessary.
26 Amended Section 364 of the LGC (Committee and Awards)

Section 18. Treasurer's Role in National and Local Elections pursuant to the Omnibus
Election Code27. –
a) Membership in the Municipal Board of Canvassers -
1. Municipal board of canvassers. - the municipal board of canvassers shall be

composed of the election registrar or a representative of the Commission, as
chairman, the municipal treasurer, and the district supervisor or in his absence
any public school principal in the municipality and one representative from each
of the ruling party and the dominant opposition political party entitled to be
represented, as members.(Sec. 221-d, Omnibus Election Code)
2. The chairperson and the members of the Board of Canvassers shall not be
related within the fourth civil degree of consanguinity or affinity to any of the
candidates whose votes will be canvassed by said board, or to any member of
the same board.(Secs. 222, Omnibus Election Code, Art. XIX)
3. Officials designated in acting capacity to the offices/positions enumerated by law

as chairman, vice chairman or member of the Board may be appointed thereto
but not those designated in an Officer-in-Charge capacity. (Sect. 6, COMELEC
Resolution No. 10050, dated February 3, 2016)
b) Custodianship of Ballot Boxes and Election Paraphernalia– The Provincial, City

and Municipal Treasurer shall have custody of ballot boxes and such election
paraphernalia, supplies and materials as are entrusted to him/her under the law or
rules of the COMELEC and shall be responsible for their preservation and storage,
and for any loss, destruction, impairment or damage of any election equipment
materials or document in their possession furnished under the Omnibus Election
Code. (Sec. 162, Art. XIII, Omnibus Election Code)
c) Preparation of Emergency Ballots– In the event of failure to receive the official

ballots on time, or where there are no sufficient ballots for all registered voters or when
they are destroyed and it is impossible to provide other ballots, the City or Municipal
Treasurer shall provide other ballots which shall be similar to the official ones and
which shall be uniform within each polling place. The City/Municipal Treasurer shall
immediately report such action to the COMELEC.
d) Record of Quantity and Serial Numbers of Official Ballots and Election Returns.
- The Provincial, City or Municipal Treasurer shall respectively keep a record of the
quantity and serial numbers of official ballots and election returns furnished the
various provinces, cities, municipalities and polling places, as the case may be. (Sec.
186, Omnibus Election Code, Art. XVI)
e) Verification and Distribution of Official Ballots and Election Returns in

accordance with the COMELEC resolutions -
f) Certification of Serial Number of Election Returns - The Provincial, City or

Municipal Treasurer shall issue a certification as to the serial number of the election
return assigned to a voting precinct in the case of an election return with a separately
printed serial number or which bears a different serial number from that assigned to
the particular polling place. Said election return shall not be canvassed, unless the
Commission shall order in writing for its canvassing, stating the reason for the
variance in serial number.(Sec. 212, Omnibus Election Code, Art. XVIII)
j) Delivery, Preservation and Disposition of Ballot Boxes -
27BATAS PAMBANSA BILANG 881, December 3, 1985

1. The ballot box, all supplies of the BEI and all pertinent papers and documents shall
immediately be delivered by the BEI and the watchers to the City or Municipal
Treasurer who shall keep his office open all night on the day of the election if
necessary for the purpose, and shall provide the necessary facilities for said
delivery at the expense of the city or municipality. The City or Municipal Treasurer
shall on the day after the election require the members of the BEI who failed to
send the objects herein referred to deliver the same to him/her immediately and
acknowledge receipt thereof in detail.(Sec. 217, Omnibus Election Code, Art. XVIII)
2. The City and Municipal Treasurer shall keep the ballot boxes under their
responsibility for three months and stored unopened in a secured place, unless the
COMELEC orders otherwise or shall demand them sooner or shall order their
preservation for a longer time in connection with any pending contest or
investigation. Upon the lapse of three months and if there is no order to the
contrary, the COMELEC may authorize the City and Municipal Treasurer in the
presence of its representative to open the boxes and burn their contents, except
the copy of the minutes of the voting and the election returns deposited therein
which they shall keep.(Sec. 219, Omnibus Election Code, Art. XVIII)
k) Delivery and Transmittal of Election Returns - For the City and Municipal Board of
Canvassers, the copy of the election returns of a polling place intended for the City or
Municipal Board of Canvassers, duly placed inside a sealed envelope signed and
affixed with the imprint of the thumb of the right hand of all members of the BEI, shall
be personally delivered by the members of the BE1 to the City or Municipal Board of
Canvassers under the proper receipt to be signed by all the members thereof.(Sec.
229, Omnibus Election Code, Art. XIX)
l) Safekeeping of Transmitted Election Returns - The Board of Canvassers shall

keep the ballot boxes containing the election returns in a safe and secured room
before and after the canvass. The door to the room must be padlocked by three (3)
locks with the keys kept as follows: one with the chairman, the other with the
representative of the ruling party, and the other with the representative of the dominant
opposition party.(Sec. 230, Omnibus Election Code, Art. XIX)
m) Canvass by the Board of Canvassers - The Board of Canvassers shall meet not
later than six o'clock in the afternoon of Election Day at the place designated by the
COMELEC to receive the election returns and to immediately canvass those
received. It shall meet continuously from day to day until the canvass is completed.
Subject to reasonable exceptions, the Board of Canvassers must complete their
canvass within 36 hours in municipalities, 48 hours in cities and 72 hours in
provinces. (Sec. 231, Art. XIX, Omnibus Election Code). Violation hereof shall be an
election offense punishable with imprisonment of not less than one year but not
more than six years and shall not be subject to probation. In addition, the guilty party
shall suffer disqualification to hold public office and deprivation of the right of
suffrage.(Sec. 264, Omnibus Election Code, Art. XIX)
Chapter 4. BONDING OF LOCAL TREASURERS AND OTHER LGU ACCOUNTABLE

OFFICERS
Section 19. Legal Basis for the Bonding of Local Treasurers and Other LGU Accountable
Officers. –Treasury Circular No. 02-2009 dated August 6, 2009 revised Treasury Order Nos. 01-
95 and 01-99 pertaining to regulations promulgated for the effective bonding of accountable
officers pursuant to the provisions of the Public Bonding Law (PBL).
Section 20. Guidelines on Bonding of Local Treasurers and Accountable Officers. –

a) Bonding of Local Treasurers and Accountable Officers -
1. Every officer of the local government unit whose duties permit or require the
possession or custody of local funds shall be properly bonded, and such officer shall
be accountable and responsible for said funds and for the safekeeping thereof in
conformity with the provisions of law.(Sec. 305 (f), LGC)
2. Every officer, agent and employees of the Government of the Philippines or of the
companies or corporations of which the majority of the stock is held by the National
Government, regardless of the status of their appointment shall, whenever the nature
of the duties performed by such officer, agent or employee permits or requires the
possession, possession, custody or control of funds or properties for which he/she is
accountable, be deemed a bondable officer and shall be bonded or bondable and
his/her fidelity insured.(Sec. 4.1 of the Treasury Circular No. 02-2009 dated August 6,
2009)
3. All Heads of Agencies shall upon appointment or lawful accession by any

accountable public officer to a bondable position or office pertaining to their
respective jurisdiction or separation therefrom of any such public officer, notify in
writing the Treasurer of the Philippines (TOP) through the Bureau of the Treasury
(BTr) District/Provincial Office (DO/PO) having jurisdiction over the
agency/office/GOCC/LGU/SUC within 5 days from such appointment, lawful
succession or separation and submit the required application for bond or cancellation
thereof, as applicable.(Local Treasury Circular No. 02-2009, Sec. 6.2)
4. The duty to notify the TOP shall be given preferential attention of such heads of
departments, bureaus and offices of the National Government including GOCCs,
SUCs, heads of LGUs, Provincial and Local Treasurers and other officials concerned.
(Local Treasury Circular No. 02-2009, Sec. 6.3)
b) Procedure for Bonding Application:(Treasury Circular No. 02-2009 dated. Aug. 6,

2009) -
1. The applicant shall accomplish in duplicate General Form (GF) Nos. 57A
(Request Form) and 58A (Application Form), copies of which can be secured
from BTr Dos/Pos. GF No. 58A shall be subscribed and sworn to before any
officer authorized to administer oath, attaching therewith two (2) passport size
identification pictures taken within the last three (3) months prior to the date of
application. The Request and Application Forms shall be accompanied by the
following:
1.1. Latest Sworn Statement of Assets, Liabilities and Networth (SALN).
1.2. List of bondable public officers certified by the agency officer in charge of
Administrative and/or Finance Department, Service, Division or unit (Form
Annex D of TC No. 02-2009).
2. The Request and Application Forms, together with required supporting

documents, shall be filed with the CTOO II assigned at the BTr DOs/POs having
jurisdiction over the agency. The CTOO II shall verify, ascertain and determine
the following:
1.1 If GF Nos. 57A and 58A have been properly accomplished and in order;
1.2 If the required supporting documents are complete and in order;

1.3 If the name of the applicant appears on the list of bondable public officers
submitted by the agency;
1.4 If the applicant is a safe and conservative risk in accordance with Section
320 of the PBL.
3. In case of non-compliance with the above Section, the CTOO II shall return to the
applicant the Request and Application Forms and its supporting documents for
necessary corrections and/or compliance.
4. In case the applicant is determined to be an unsafe risk, The CTOO II shall

transmit the bond application to the RD with his recommendation for disapproval
stating the basis therefor.
5. When the recommendation of the CTOO II is affirmed by the RD, the latter shall
communicate the disapproval in writing to the Head of Agency of the applicant
public officer stating therein the factual and legal basis for such disapproval.
6. The CTOO II shall assess the applicable bond premium and issue the ATAP when
GF 57A and 58A and supporting documents are found to be complete and in
order.
7. The applicant shall upon receipt of the ATAP, proceed to the nearest AGDB where
the TOP has a deposit account for payment of the assessed bond premium shall
be for the account of the TOP. The CTOO II or his representative shall not, for
any reason, receive payment of the bond premium.
8. Violation hereof shall subject the CTOO II or his representative to appropriate

sanctions as for grave misconduct defined and penalized under the Revised
Uniform Rules in Administrative Cases in the Civil Service in relation to Rule XIV,
Omnibus Rule of Implementing Book V of EO 292 s. 1987.
9. The applicant accountable public officer shall submit and present to the
concerned CTOO II a copy of the validated deposit slip and ATAP as proof of
payment of the bond premium.
10. The CTOO II shall transmit all bond application to RD for approval of bond
application only upon proof of compliance under the abovementioned Section.
Section 21. Schedule of Cash Accountability and the Corresponding Bonds. –
1) Amount of Bond -
The amount of bond shall be based on the total accountability (cash, property and accountable
forms) of the accountable public officer as determined by the Head of Agency. Provided, the
individual maximum accountability of each accountable public officer shall not exceed One
Hundred Million Pesos (P 100M). However, the Head of the Agency may assign to other public
officers the excess accountability for which separate Fidelity Bond shall be secured.(Sec. 5.1,
Treasury Circular No. 02-2009)
2) Authority to Fix Schedule of Premium -
The Treasurer of the Philippines with the approval of the Secretary of Finance shall fix and, from
time to time, review the uniform rate of the bond premium chargeable for insurance under the
Public Bonding Law or PBL. (Sec. 5.2, Treasury Circular No. 02-2009)
3) Rate of Premium -

The rate of premium of the Fidelity Bond is equal to 1.5% of the amount of bond but shall not be
less that P 150.00. The Revised Schedule of Premium Rates (pls. See the table below) shall
form an integral part of Treasury Circular 02-2009 until amended or revised. (Sec. 5.3, Treasury
Circular No. 02-2009)
SCHEDULE OF PREMIUM RATES as provided under Treasury Circular No. 02-2009,

dated August 6, 2009:
I. CASH ACCOUNTABILITY
MINIMUM CASH MAXIMUM CASH AMOUNT OF BOND BOND PREMIUM

ACCOUNTABILITY ACCOUNTABILITY
5,000.00 9,000.00 75% OF THEIR TOTAL BOND PREMIUM
CASH ACCOUNTABILITY SHALL NOT BE LESS
THAN Php 150.00
9,001.00 12,000.00 9,000.00 150.00
12,001.00 15,000.00 11,250.00 168.75
15,001.00 18,000.00 13,500.00 202.50
18,001.00 21,000.00 16,750.00 251.25
21,001.00 25,000.00 18,900.00 283.50
25,001.00 30,000.00 22,500.00 337.50
30,001.00 35,000.00 26,250.00 393.75
35,001.00 40,000.00 30,000.00 450.00
40,001.00 50,000.00 37,500.00 562.50
50,001.00 60,000.00 45,000.00 675.00
60,001.00 80,000.00 60,000.00 900.00
80,001.00 100,000.00 75,000.00 1,125.00
100,001.00 250,000.00 100,000.00 1,500.00
250,001.00 500,000.00 225,000.00 3,375.00
500,001.00 750,000.00 350,250.00 5,253.75
750,001.00 1,000,000.00 500,000.00 7,500.00
1,000,001.00 2,500,000.00 750,000.00 11,250.00
2,500,001.00 5,000,000.00 1,500,000.00 22,500.00
5,000,001.00 25,000,000.00 3,500,000.00 52,500.00
25,000,001.00 75,000,000.00 4,000,000.00 60,000.00
75,000,001.00 100,000,000.00 5,000,000.00 75,000.00
II. PROPERTY ACCOUNTABILITY
1. Government Securities 30% of their total value X 1.5% = Premium

2. Equipment 30% of their total value X 1.5% = Premium
3. Supplies and Materials 30% of their total value X 1.5% = Premium
III. FOR ACCOUNTABLE FORMS
a. Internal Revenue Stamp

b. Documentary Stamp
c. Customs Documentary Stamp
d. Cash Tickets
10% of their total X 1.5% = Premium
e. Postage and other Stamp Stocks value rounded off to
f. Cattle Registration Certificates the nearest hundred
g. Marriage Certificates
h. Auto Driver Certificates

i. Motor Vehicle License
j. Other Accountable Forms having face
value
Section 22. Renewal. – The Fidelity Bond of an accountable officer shall be renewed before the
expiration of the bond. The application for renewal of bond shall be accomplished by using
General Form 57A and accompanied by the following:
a) List of bonded public officers subject for renewal certified by the agency official in charge
of Administrative and/or Finance department, service, division or unit; Agency certification
that the bond applicant has no pending administrative and/or criminal case (Annex E).
For a bond applicant with pending administrative and/or criminal case, copies or pertinent
pleadings, orders and resolutions filed or issued by the disputing parties prosecutor or
investigatory offices and judicial bodies shall be attached to the bond application;
b) Copy of the latest BTr approved bond or copy of the Confirmation Letter; and
c) Latest Sworn SALN.
(7.2 – 7.2.3, Treasury Circular No. 02-2009 dated August 6, 2009)
Section 23. Increase in the Amount of Accountability. –
a) Any increase in the amount of accountability will have a corresponding increase in the
premium of the bond.
b) The applicant shall accomplish and submit GF 57A to the concerned DO/PO together
with the following:
1. Special Order increasing the amount of accountability; and
2. List of bonded public officers certified by the agency official in charge of:
Administrative and/or Finance Department, Service, Division or Unit.
c) The amount of bond premium shall be computed based on the increased amount of
bond. The bond shall take effect upon the time of payment of premium on the new bond
application.
d) The Chief Treasury Operations Officer II (CTOO II) of the BTr concerned shall conceal
the previously assigned risk number to the applicant and issue a new risk number to the
new bond application.
(7.3 Treasury Circular No. 02-2009 dated August 6, 2009)
Section 24. Accountable Officers Considered Unsafe Risks. –The concerned CTOO II shall
evaluate the bond application to determine if the applicant is a safe and conservative risk in
accordance with Sec. 320 of the PBL. When the CTOO II have basis to prove that the applicant
public officer is an unsafe risk owing to character, association or habits, the following procedures
shall be followed: (Treasury Circular No. 02-2009 dated August 6, 2009)
a) The CTOO II shall transmit the bond application to the RD with his recommendation for
disapproval stating the basis therefor. When the recommendation of the CTOO II is
affirmed by the RD, the latter shall communicate the disapproval in writing to the Head of
Agency of the applicant public officer stating therein the factual and legal basis for such
disapproval.

b) The disapproval/decision of the RD maybe appealed by the concerned Head of Agency
by filing a letter of appeal with the TOP within 15 days from the receipt of such
disapproval/decision. The letter of appeal shall state clearly and distinctively the grounds
and arguments of the appeal. A copy of the assailed written action/decision and
disapproved bond application and its supporting documents shall be attached to the letter
of appeal. The letter of appeal shall likewise be accompanied by a postal money order or
MDS check in the amount of ₱500.00 as appeal fee payable to the TOP.
c) Within 5 days from receipt of the letter of appeal and the appeal fee, the TOP shall
require the RD to elevate the entire records relating the disapproved bond application.
The TOP shall have 15 days from receipt of the records from the RD to resolve the
appeal.
d) The decision of the TOP shall be final, executory and not appealable.
(7.1.8, Treasury Circular No. 02-2009 dated August 6, 2009)
Section 25. Cancellation of Bond. –
The Head of Agency or authorized representative shall immediately submit a written request for
bond cancellation to the concerned BTr DO/PO CTOO II involving accountable public officers
who are no longer accountable by reason of retirement, separation from the service, promotion,
transfer, suspension from office or for any other cause rendering them not bondable to their
present position. The Head of Agency or authorized representative requesting for cancellation of
the bond shall accomplish GF Nos. 57A, items 10-16. (7.4Treasury Circular no. 02-2009 dated
August 6, 2009)
Section 26. Effect of Cancellation. –
The cancellation of the bond for any cause allowed in the Treasury Circular No. 02-2009 before
expiration date, has the effect of limiting the liability of the Fidelity Fund to the transactions within
the period covered up to the time of its cancellation. The bond premium paid for the accountable
public officer whose bond is cancelled shall not be transferrable and not refundable.(4.12,
Treasury Circular No. 02-2009)
Section 27. The Fidelity Fund. –
a) All bond premium collected by the Bureau of the Treasury shall constitute the Fidelity
Fund. The Fidelity Fund shall answer for defalcations, shortages and unrelieved
accountability after all possible means of recovery of the amount from the accountable
official or employee have been exhausted or his/her insolvency is declared by a
competent court. The Fidelity Fund shall be available for the payment of court fees
incident to civil proceedings to recover the sum lost.
b) The Fidelity Fund shall not be used for the following:
1. To replace fines imposed on bonded officials/employees as a result of criminal

conviction for violation of the Revised Penal Code or any penal law;
2. To answer the liability of a bonded official/employee convicted of estafa through

falsification of public documents in his/her capacity as private individual, and
3. To refund the accountability of a bonded official/employee found short in

accountability but not removed or relieved of the duties.(Sec. 8.0, Bureau of the
Treasury Order No. 01-95)

Section 28. Extent of Liability. –
a) Primary Liability -
The head of any Government agency at all levels, whether national, corporate or local is
primarily responsible and accountable for all government funds and property pertaining to his
agency.(Sec. 6.1, Treasury Circular No. 02-2009)
b) Effect of Failure to Notify -
Failure on the part of the Head of Agency to make the required notification, of appointment,
lawful succession or separation by any accountable officer to a bondable position, in writing
to the Treasurer of the Philippines through the concerned District/Provincial Office (DO/PO)
shall render them primarily liable to any such loss or damage to public funds or properties
their respective agency, province, city or municipality, barangay as the case maybe, may
incur on account on such failure.(Sec. 6.4,Treasury Circular No. 02-2009)
Section 29. Validity of Fidelity Bonds. –
a) An accountable public officer shall be considered bonded/insured with the Fidelity Fund
upon payment of the bond premium. The Fidelity Bond shall be valid and effective at the
time of payment and receipt of bond premium by the Authorized Government Depository
Bank (AGDB). The accountable public officer shall submit to the BTr DO/PO a copy of
the AGDB validated deposit slip and Authority to Accept Payment (ATAP) as proof of
payment of bond premium, after which the confirmation letter shall be issued.(4.9,
Treasury Circular No. 02-2009, dated August 6, 2009)
b) An approved Fidelity Bond shall be non-transferable and personal to the accountable

public officer and shall remain valid and effective for 1 year from the time of payment and
receipt of bond premium. The Fidelity Bond shall be subject to renewal yearly before the
expiration of the present bond coverage while the accountable public officer is holding
such position for which he was bonded. Failure to renew shall consider such bond as
automatically cancelled and shall have no legal effect.(Treasury Circular No. 02-2009,
Sec. 4.10)
Section 30. Adjudication and Payment of Claims against the Fidelity Fund. –(8.0 – 8.5.3,
Treasury Circular No. 02-2009 dated August 6, 2009)
a) Application for Relief from Accountability – When loss of public funds or property
occurs while they are in transit or the loss is caused by fire, theft, or other casualty or
force majeure, the public officer accountable therefore or having possession, custody or
control thereof shall immediately notify the Commission on Audit or the agency auditor
concerned, and within thirty (30) days or such longer period as the Commission or
auditor may in the particular case allow, shall present his application for relief with the
available supporting evidence.
b) Effect of Relief from Accountability by COA – The relief from accountability of the
accountable public officer granted by the COA shall relieve the agency from responsibility
for the loss or damage to public funds or property.
c) Fidelity Fund; When Liable – When no relief of accountability is granted by COA, the
agency concerned may file claim for reimbursement from the Fidelity Fund to the extent
of the approved bond covered or amount of loss whichever is lower.

d) Claims – Any and all claims against the Fidelity Fund shall be filed as a money claim with
COA, with copy to BTr together with the evidence relating thereto. Claims approved by
the COA shall constitute a legal claim against the Fidelity Fund.
e) Requirements for Payment of Adjudicated Claim – The agency shall file a claim for
payment from the Fidelity Fund with the BTr, attaching the favorable findings of COA. The
BTr shall process the claim in accordance with existing budgeting, accounting and
auditing rules and regulations.
1. In case of defalcation, shortages and unrelieved losses in the account of bonded

public officer, the claim shall be supported by the following documents:
1.1 Agency and COA findings and recommendation on the defalcation,

shortages and unrelieved accountability;
1.2 Latest Statement of Assets and Liabilities of the bonded official/Employee;
1.3 Proof of current and subsisting bond and payment of bond premium; and
1.4 Other document/s which may be required by the BTr.
2. In case of proven shortages and defalcation, the public officer responsible thereto
should be removed or relieved of his duties without prejudice to civil, criminal or
administrative cases to be instilled.
3. Only approved claims shall be paid from the Fidelity Fund.
f) Claims
Any and all claims against the Fidelity Fund shall be filed as money claim with COA, with
copy to BTr together with the evidence relating thereto. Claims approved by the COA
shall constitute a legal claim against the Fidelity Fund. (8.4, Treasury Circular No. 02-
2009)
g) Penal Clause
Unjustified failure of an accountable public officer to comply with the requirements to

apply the Fidelity Bond pursuant to the Treasury Circular No. 02-2009 and the Public
Bonding Law (PBL) shall subject the responsible official/employee to applicable criminal,
and/or administrative liability under the Revised Penal Code and PD 1445.
Chapter 5. ADMINISTRATIVE AND TECHNICAL SUPERVISION BY THE BUREAU OF

LOCAL GOVERNMENT FINANCE (BLGF)
Section 31. Administrative and Technical Supervision.–
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.
b) Administrative Supervision-

1. Act on Personnel movement of the local treasurers and assistant treasurersi.e.
promotion, designation, detail, secondment, transfer, retirement.
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
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;
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.
Section 32. 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.In the case of the Regional Offices,evaluation shall be
conducted within their respective jurisdiction and may be undertaken in coordination with the
Office of the Provincial Treasurer.

FORMS
AND
ANNEXES

Annexes
Annex 1: Minimum Documentary Requirement for Specific Expense Item
I. PERSONNEL SERVICES (PS)
1) Salaries
a) First salary under an Original Appointment (Sec. 197, GAAM. Vol. I)
i. Certified True Copy of Appointment duly approved by the appointing authority
ii. Certified true copy of Oath of Office
iii. Statement of Assets and Liabilities
iv. Evidence of Service Rendered (Certificate of Service/Daily Time Record)
v. Certificate/Notice of Assumption to Office
vi. Evidence or Certificate showing compliance with conditions set forth in the
approval of the appointment, if any
b) Salary under an Appointment by Transfer (Sec. 200, GAAM, Vol. 1)
i. Certified True Copy of Appointment duly approved by the Appointing Authority
ii. Certified copy of oath of office
iii. Statement of Assets and Liabilities
iv. Evidence of Service Rendered/Daily Time Record
v. Certificate/Notice of Assumption to Office
vi. Clearance from money and property accountability from previous office
vii. Certificate of last salary received from former office
viii. Approval of authority to transfer of employee
ix. Certificate of last day of service from former office
c) Salary Differentials under promotional appointment (Sec. 119, GAAM, Vol. I)
i. Approved Appointment/Notice of Salary Adjustments
ii. Evidence of Service Rendered (Certificate of Service/Daily Time Record)
iii. Certificate/Notice of Assumption to position Salaries/Wages of Temporary,

Casual or Emergency Employees (CAO Cir. 81-155, Feb. 23, 1981)
a. Authority or basis of employment
b. Evidence of Service Rendered/Daily Time Record
d) Salaries of Persons Employed on Contract Basis (COA Cir. 81-155, Feb. 23, 1981)

i. Contract of services duly noted by DBM and CSC
ii. Evidence of Service rendered/Daily Time Record
e) Salary upon Termination of Service
i. Employee's Letter of Resignation and acceptance of Resignation
ii. Certificate of Clearance from money and property accountability
iii. Certificate of clearance from GSIS
f) Salary Due Heirs of Deceased Employees
i. Death Certificate or Affidavit of attending physician
ii. If married, marriage certificate or in its absence an affidavit of surviving

spouse supported by affidavits of two (2) disinterested persons having
knowledge of the marriage relationship
iii. Designation of next of kin
iv. Clearance of the deceased from money and property accountability
g) Salary Accruing Pending Suspension (Sec. 220, GAAM, Vol. I)
i. Certified true copy of exoneration or of court's order dismissing the criminal

case against the employee or absolving him/her; or Certified True Copy of
authoritygranted by the department head for payment of salary during
suspension; or
ii. Certified true copy of the President's order of suspension providing for
payment ofsalary during suspension.
2) Commutation of Leave of Absence
a) Vacation or Sick Leave
i. Application for leave approved by the proper head of agency or his duly
authorized representative
ii. Clearance certificate from money and property accountability, if absence is in

excess of thirty days
iii. Medical certificate in case of sick leave, except where leave not exceeding five
(5) days had already been enjoyed
iv. Statement showing the balance of leave standing to the credit of the employee
b) Entitlement of Leave Privileges
As a general rule all officers and employees who have rendered at least six (6)
months of continuous service, faithful and satisfactorily service, and whose office
hours as so fixed that they are on duty the number of hours required by law, are
entitled to 15 days’ vacation and 15 days sick leave with full pay exclusive of

Saturdays and Sundays and holidays without limitation as to the number of days of
vacation and sick leave that they may accumulate.
c) Maternity Leave
i. Approved application for leave, accompanied by a medical certificate showing

that the married woman is on the family way and nearing delivery, or Medical
Certificate showing actual child delivery or natural abortion not covered by
illegitimate union or immortality, if leave applied for its submitted after delivery
or abortion
ii. Marriage Certificate for first maternity leave claim
iii. Certificate of clearance from money and property accountability (Sec. 235,
GAAM, Vol. I)
Married women in the government service who have rendered two years or more of
continuous service shall be entitled to maternity leave of 60 days with full pay. For those
who have rendered less than two (2) years of government service at the time of
theenjoyment of maternity leave, the computation of their maternity leave shall be
proportionate to their length of service (Sec. 17 Rule XVI Omnibus Rules Implementing
Book V of EO No. 292)
When an employee wants to report back to duty before the expiration of her maternity
leave, she may be allowed to do so without refunding the commuted money value of the
unexpired portion of her maternity leave and she shall be paid the corresponding salary
for the service rendered
The foregoing provision shall be subject to a certification of a physician that the subject
employee is physically fit for work (Sec. 14 Rule XVI Omnibus Rules Implementing Book
V of EO 292)
d) Monetization of Leave/Service Credits
i. Duly approved application for monetization of leave credits. However, no

inclusive dates shall be indicated except the number of days applied for
ii. Certification/Statement showing the balance of leave standing for the credit of
employee , which shall not be less than 15 days
e) Entitlement of monetization of leave credits
Government officials and employees in the career of non-career service whether

permanent, temporary of provisional or casual may be allowed to monetize a maximum
of ten (10) days leave credits provided they have already accumulated at least fifteen
(15) day vacation leave/service credits at the time of application.
f) Terminal Leave (COA Cir. 81-55, Feb. 23, 1981)
i. Approved application for Terminal Leave
ii. Complete Service Record
iii. Clearance from Money and Property Accountability
iv. Clearance from the Ombudsman

v. Statement of Assets and Liabilities
vi. Copy of last appointment and appointment showing highest salary received if the
salary under last appointment is not the highest
vii. Clearances from fiscal's office, places of residence and place of last assignment
viii. Claimant's affidavit, that there is no pending case against him/her (RA 3019)
g) Overtime Pay (COA Cir. 81-155, Feb. 23, 1981)
i. Authority of the Department Head
ii. Accomplishment Report
iii. Daily Time Record
h) Payment of Overtime Compensation
Overtime compensation by the hour shall be computed on the basis of the authorized
monthly basic salary of the officer or employee authorized to render overtime services.
However, as a general rule, the amount of overtime compensation, which may be allowed
an employee for a given calendar year, shall not exceed fifty percent (50%) of his basic
salary (Sec. 282 (a), GAAM, Vol. I)
Meal allowance in kind at P 20.00 per meal may be granted to officials and employees
who have rendered at least three (3) hours of overtime service before mealtime.
However, availment of the meal allowance in kind herein authorized shall constitute a bar
from collecting the overtime compensation authorized (Sec. 282, GAAM, Vol. II)
i) Officials and Employees not entitled to Overtime
The payment of overtime service shall not apply to officials occupying positions
enumerated hereunder:
i. Department Secretaries
ii. Department Undersecretaries
iii. Department Assistant Secretaries
iv. Bureau Directors and Regional Directors
v. Assistant Bureau Directors and Assistant Regional Directors
vi. Department Service Chief and Assistant Department Service Chiefs
vii. Positions of equivalent category as an State Universities and Government-

Owned and Controlled Corporation
viii. Intermediate positions and created in between the above enumerated positions
and inasmuch as these positions involve coordinative and integrative functions
and in some cases exercising general supervision over the line divisions and
units (Sec. 284, GAAM, Vol. I)
j) Honorarium

i. Authority to collect honorarium
ii. Certification of service rendered
iii. Copy of contract, if any, between the agency and the personnel if latter is not an
employee of the agency
iv. Accomplishment report
k) Subsistence Allowance
i. Daily Time Record/Evidence of Service Rendered
ii. Duly approved request for commutation
l) Entitlement/Non-Entitlement to Subsistence Allowance
Subsistence allowance shall mean all allowance for meal or subsistence for an official or
employee who, by the nature of his duties and responsibilities has to make his services
available in his place of work even during mealtime. (Sec. 243, GAAM, Vol. II)
In all cases, officials and employees who are on maternity leave, sick or vacation leave,
whether with or without pay, or on full time or part time detail with another organizational
unit of same agency, another agency or special project, or attending training
course/scholarship grant/seminar or any other similar activity or on official travel shall not
be entitled to subsistence allowance for the duration of their official leaves, detail,
attendance in a training course/scholarship grant/seminar, or any other similar activity, or
official travel. (Sec. 296 (e), GAAM, Vol. I)
m) Hazard or Hardship Allowance (Sec. 313, GAAM, Vol. II)
i. Evidence from the department of National Defense the place of assignment/travel

in a strife torn/hazardous area, or Certification from the Regional Director
concerned in case of assignment in mental hospital, radiation exposed clinic and
laboratories or disease infested areas, or Certification from the Philippine Institute
of Volcanology and Seismology in case of volcanic activity and/or eruption
ii. Duly accomplished time record of employee or travel report
iii. Certification of the accountant that funds are available for the purpose
iv. A copy of special order from the agency department head covering the assignment
to hazardous/difficult areas
n) Representation and Transportation Allowance (RATA)
i. Approved resolution/law authorizing grant of RATA
ii. Certification that recipient does not use government vehicles and that said amount
was incurred in the performance of his duties.
Annex 2: Maintenance and Other Operating Expenses (MOOE)
1) Travel Expenses
1. Local Travel (E.O. No. 298, March 23, 2004)

i. Travel Order or Authority to Travel approved by the Agency Head or his duly
authorized representative, or by the Department Head for travel exceeding One
(1) month but not less than three (3) months, or by President, if travel exceeds
three (3) months.
ii. Approved Itinerary of Travel
iii. Certificate of Travel Completed
iv. Certificate of Appearance
v. Tickets for place, bus, ship fare or its equivalent
vi. Receipts, in case entitled to travel representation allowance
vii. Reimbursement Expense Receipt (RER), if necessary
For Department of Health Field Personnel
i. Itinerary of Daily Activities of Field Employees (IDAFE) (which consolidates

Itinerary of Travel, Certificate of Travel completed, Certificate of Appearance and
Monthly Activity Report)
ii. Summary of Travel Expenses Claim (STEC) (COA Cir. 89-306, May 5, 1989)
For Travel in Connection with Appearance in Court
i. Certificate of Attendance in court and copy of subpoena
ii. Certificate to effect that he is a witness for the government and not a party in a
civil case
iii. If claimant is an ex-employee, Certificate that he was cited by reason of

knowledge of the case while he was still in the service
iv. Rates shall follow the existing authorized rates
Limitations in payment of Travelling Expenses
A full travel allowance is allowed only in cases of absence from the permanent station
One (1) full day. For less than a full day, only the corresponding fractional part of the allowance.
To determine fractional part, divide allowance equally into four (4) units corresponding to
breakfast, lunch, dinner and lodging.
2. Foreign Travel
Types of foreign travel
i. Scholarship, fellowship, and training or study grants to be approved by the special

committee on scholarship created for the purpose
ii. Conferences, special missions and other non-study trips
iii. Assignment to Foreign Service posts such as officials and employees of the
Department of Foreign Affairs, Trade and Labor Attaches etc.
Allowable travel expenses

1. Scholarship, fellowship and training or study grants
i. living allowance and per diems

ii. transportation
iii. clothing allowance
iv. tuition and matriculation fees, books and supplies
v. medical and dental care
vi. Insurance
2. Conference, missions and other study trips (Sec. 351, GAAM, Vol. I)
i. Transportation
ii. Clothing allowance
iii. Representation expenses
iv. Daily allowance and reimbursable limit for hotel room rate Insurance
Documentary requirements
i. Approval of the President for Department

Secretaries/Undersecretaries/Assistant Secretaries and other officials of
equivalent rank, or of the Department Head for all other positions
ii. Approval of Special Committee on Scholarships - for scholarship, fellowship,
training and study grant
iii. Travel Order
iv. Approved Itinerary of Travel
v. Authority from the Office of the President for representation allowances
vi. Certification that no clothing allowances has been received during the next
preceding twenty four (24) months for claims for clothing allowance
vii. Certificate of Travel Completed
viii. Tickets
ix. Receipts, in case of pre travel expenses
x. For representation expenses, Certification under oath that expenses incurred
were pursuant to Title II (Conferences, Special Missions and Other Non-Study
Trips) Section 17 of EO 129, as amended in accordance with prior authority
obtained from the Office of the President
xi. Report on Travel
2) Communication Services
a) Telephone Charges
i. Receipts/Invoices/Bill (Original Copy)
ii. Certification of the Head of the agency concerned or his authorized

representative that there was no service interruption and that all telephone
numbers covered are properly indicated on company's bill
iii. For long distance calls, certification of the Head of the agency that the long
distance calls was strictly official in nature, exceptionally urgent and absolutely
necessary
b) Telegrams, Cables and Wireless Charges (GAAM)
i. Invoices/Receipts (original copy)
ii. Copy of messages/telegrams/radiogram/cablegrams and all other wireless

messages

c) Postage charges (SAM)
i. Duly approved requisition /PO
ii. Statement showing by denomination the balance on the date of the last
purchase, the issues since then, and the balances on the date of new purchase
iii. Evidence of Payment/OR
3) Repairs and Maintenance of Government Facilities
a) By Administration
i. Authority to undertake project
ii. Program of work/detailed cost estimates approved by proper authorities
b) By Contract
i. Contract signed by the parties and witnessed by Chief Accountant/Treasurer
ii. Plans, Programs of Work, Detailed Cost Estimates approved by proper

authorities
iii. Certificate of availability of Funds, duly verified by the Auditor
iv. Accomplishment Report
v. Affidavit of contractor that all bills for materials used and labor employees have
been paid as corroborated by a certificate of project engineer
Thru Public Bidding (First Payment)
i. Advertisement/Call for Bids
ii. Winning Bidders offer and Bid Tender of other participants/abstract of bids
iii. Letter of Award Acceptance of Bid proposal
iv. Contract Documents and Performance Bond
v. Plans and Specifications
vi. Notice to Commence Work
vii. Inspection report and Contractor's accreditation Succeeding Payment (additional)
viii. Bill of Creditor
ix. Progress Report of Accomplishment
x. Inspection Report
Final Payment (Additional)
i. Certificate of Completion and Final Acceptance • Certificate of Final Inspection

ii. Affidavit of the contractor stating that all materials used and laborers employed
have been paid
iii. Negotiated Contract (First Payment)
iv. Authority to enter into negotiated contract
v. Contract documents and performance bond
vi. Program of Work and Detailed Cost Estimates
vii. Notice to Commence Work
viii. Inspection Report and Contractor's accreditation
Succeeding Payment (Additional)
i. Bill of Creditor
ii. Progress Report of Accomplishment
iii. Inspection Report
Final Payment (Additional)
i. Certificate of completion and final acceptance

ii. Certificate of final inspection
iii. Affidavit of the contractor stating that all bill of materials used and laborers
employed have been paid
Payment of Change or Extra Work Order and Contract Price Adjustment
i. Same as by Administration and by contract if not yet submitted
ii. Approved change order or extra work and approval by the proper authorities of
price adjustment
iii. Breakdown of total addition/ deduction amount involved into work items and cost
components including detailed quantity estimates of any additional work
iv. Cost estimate showing in sufficient detail the derivation of all prime/direct cost and
overhead/indirect cost of new items of work not included in original contract
v. Duly approved revised plans indicating changes made inspection report
4) Maintenance of Motor Vehicles Used for Official Travels of Officials and Employees
a) Repair and/or servicing
i. Approval request for repair and/or servicing
ii. Pre-repair inspection (COA Cir. 89-229 A, 9/8/99)
iii. Certificate of the Property Officer stating the vehicle belongs or is used by the
agency, and the repair is necessary and that the defects in the vehicle was

incurred through normal wear and tear and not due to the fault or negligence of
any official or employee
iv. Report of Waste Materials for replacement of spare parts
v. Official receipts for expenses incurred for repair and servicing and spare parts
b) In case of Major Repair
i. Canvass from at least three (3) contractors, or public bidding if amount involved is
more than P 50,000.00
ii. Certificate of Accreditation of repair shop issued by Accreditation Board
iii. Job Order/Contract
iv. Guaranty Certificate of Contractor
v. Certificate of Acceptance by Property Officer of the work or service done in

conformity with specifications of contract and accomplished within the specific
period of time
5) Transportation Services
a) Hauling Services
i. Contract of Service
ii. Certificate of Receipts of Agency consignee of articles in good order and condition
b) Shipment
i. Copy of bills of lading and/or airway bill as the case may be, signed by consignee
or his representative
ii. Certificate of Receipt of agency - consignee of articles in good condition
6) Supplies and Materials
a) Common to all kinds of Purchase or Contracts
i. Requisition and Issue Slip (RIS) duly approved by proper authorities
ii. Purchase/Letter Order/ Contract, duly approved by proper officials
iii. Original copy of the dealer's/supplier's invoice duly signed by the dealer or his
representative
iv. Inspection report or waiver of inspection
v. Results of tests or analysis by proper government agency if articles are subject

to test
vi. Certificate of availability of funds
vii. Memorandum Receipts signed by officials or employees to whom semi-

expendable supplies had been issued

viii. Stock position sheet in case any single commodity requisitioned exceeds
P1,000.00 in value
ix. Evidence of acceptance and receipt by the agency
Thru Public Bidding (additional)
i. Copy of advertisement
ii. Winning bidder's offer
iii. Bid tenders of other participants
iv. Letter of award of acceptance and
v. Performance bond of winning bidder
Thru Emergency Purchase (additional)
i. Canvass papers from at least three (3) bonafide suppliers
ii. Certificate of head of agency or his duly authorized representative as to the

necessity and jurisdiction for emergency purchase, and that the price paid or
contracted for is reasonable and that it was the lowest obtainable at the time of
purchase or order
Thru Exclusive Distributors (additional)
i. Certificate of exclusive distributorship
ii. Certificate that there are no sub dealers selling at lower prices and that no
suitable substitute are available
b) For Gasoline and Oil
i. Driver's Trip Ticker duly accomplished and approved
ii. Requisition and Issue Voucher
iii. Invoices
iv. Fuel consumption report
7) Rents
i. Contracts of Lease
ii. Statement of Account/official receipt
8) Interest
i. Authority for incurrence of obligations together with the terms and conditions for
repayment and the rates of interest charged (SAM)
9) Grants, Subsidies and Contributions

i. Memo of Agreement/Authority for grants, subsidies and contributions (SAM)
10) Awards and Indemnities
b. Indemnify for injuries/sickness/death
i. Evidence showing that death, sickness or injury as the case may be, occurred or
was contracted in line of duty
ii. Certificate of Award issued by committee as Physical examination of the agency

concerned (SAM)
c. Indemnify for damages to property
i. Indemnity Bond, in case property being conveyed is unregistered or untitled

(SAM)
ii. Deed of absolute Sale or Conveyance (SAM)
iii. Deed of Conveyance or agreement to Demolish and Remove Improvement
iv. Certificate of Title (SAM)
11) Water Illumination and Power Service
i. Bill/Official Receipts
12) Social Security Benefits, Awards and Other Claims
a. Retirement Claims
i. Application in writing duly endorsed to the system by the Head of Agency

concerned
ii. Complete service record including statement of leave of absence without pay
iii. Clearance from money, property and legal accountability
iv. Approval of retirement by the employer or agency and adjudication by the GSIS
v. Clearance from GSIS
vi. Fiscal's clearance -- place of assignment and place of residence
vii. Affidavit of applicant that he has no pending criminal case
viii. Statement of Assets and Liabilities (COA Cir. 81-155, 2/23/81)
b. Separation Pay
i. Copy of pertinent law/authority
ii. List of employees lay off showing the names designations and last salary
received
iii. Service record of each employee duly certified by Head of Agency or his duly
authorized representative

iv. Certificate of Clearance from agency concerned
v. Certificate of Clearance from GSIS
vi. Certificate of Clearance from PAGIBIG
vii. Statement of Assets and Liabilities
13) Training and Seminar Expenses
i. Purchase of supplies and materials shall be in accordance with the procurement

requirement for "Supplies and Materials" particularly on emergency purchase
ii. Receipts for other expenses incurred
14) Extraordinary and Miscellaneous Expenses
i. Receipts and/or other document evidencing disbursement
ii. Certificate executed by the official concerned that the expenses sought to be
reimbursed have been incurred for the purpose (in case of extraordinary and
miscellaneous expenses)
15) Confidential and Intelligence Expenses
a. The confidential and intelligence funds shall be utilized for the following purposes:
1. National defense, peace and order, intelligence, counter intelligence programs of the
Department of National Defense and related agencies;
2. For specific intelligence and/or confidential operation of the National Government

agencies and government owned or controlled corporations with appropriation for
intelligence and/or confidential funds;
3. In the case of the national security fund, for undertaking national security missions,
and
4. For police investigation and detection activities, policies intelligence and arson
investigation activities. (COA Cir. 88-293 12/12/88)
i. Certified Xerox copy of pre-audited cash advance vouchers
ii. Certified Xerox copy of request for obligation of allotment
iii. Certified Xerox copy of allotment advice
iv. Undertaking of the summary of expense - Form No. 1
v. Certified Xerox copy of (face of the paid check, reverse side of paid check
indicating endorsement made, itemized list of disbursement)
5. Additional documents required to support ordinary disbursements
i. For incidental expenses such as transportation and entertainment of

assets/informers vouchers shall be supported by receipts, invoices, bill for board

and lodging, itinerary of travel, travel order, certificate of travel completed, and
certificate of appearance
ii. For purchase of supplies and materials and equipment, vouchers shall be
supported by purchase/letter orders, report of canvass, delivery receipts, waste
material report and other pertinent documents
iii. For purchase of information or payment or reward vouchers shall be supported
by documents evidencing receipt of payment
16) Advertising and Publication Expenses
i. Statement of Account
ii. Clippings of the advertisement and notices published
17) Other Services
a. Repair and Maintenance Done by Private Contractor
i. Repairs thru negotiated contracts and public bidding same as by

administration and by contract
ii. Job Order/Contract
iii. Report of Waste Materials
iv. Certificate of Property Officer that equipment belong to or is used by the
agency concerned that repair is necessary through normal wear and tear and
not due to the fault or negligence of an employee or official
v. Guaranty/Warranty/Certificate of repairman
vi. Pre-repair inspection
b. Subscription to Periodicals and Technical Magazines
i. Copy of subscription
ii. Evidence of receipt of payment
c. Radiocast and Telecast, Video Coverage and Documentary Films
i. Contract between agency and radio or TV station specifying conditions or

radio cast or telecast (Sec. 415 (a), GAAM, Vol. I)
ii. Evidence of receipt of payment
d. Payment of Legal Expenses
i. Application of official or employee concerned giving the facts of offence he was

charged with and approved by proper Department Head concerned and passed
upon by the COA Chairman
ii. Copies of decision exonerating him/her from administrative or criminal liability

Receipts of actual and related expenses incurred
iii. Certificate of availability of funds (Sec. 4.16(a), GAAM, Vol. 1)
e. Security and Janitorial Services
i. Contract executed between agency and private firm
ii. Copy of bond which is equal to the cost of labor under contract

LAWS THAT HAVE HAD MAJOR INFLUENCE ON PRESENT FISCAL ORGANIZATION IN
THE PHILIPPINES
June 19, 1959 1. Secretary of Finance Reviews provincial

R.A. 2264 – “An act Amending the Laws and city budgets (Sec. 1, RA 2264).
Governing Local Governments by Increasing 2. Provincial Treasurer reviews Municipal
their Autonomy and Reorganizing Provincial District budgets (Sec. 1, RA 2264)
Governments” 3. Secretary of Finance reviews tax
ordinances and has the authority to
suspend the effectivity of the ordinance if in
his opinion, the tax or fee therein levied or
imposed is unjust, excessive, oppressive, or
confiscatory. (Sec. 2, RA 2264)
4. Appointments by Provincial Governors, City
Mayors and Municipal Mayors become
effective upon the issuance of such
appointments and attestations by the
provincial treasurers of provinces, in case of
appointments made by provincial and
municipal mayors, and by the city treasurers
in case of appointments made by city
mayors. Provincial treasurers and city
treasurers are deputized by the
Commissioner of Civil Service for the
purpose of attesting appointments made by
provincial governors, city mayors and
municipal mayors. (Sec. 8, RA 2264)
January 1, 1960 1. Ten percent of all real estate taxes collected
R.A. 2370 – “Barrio Charter” within the barrio accrue to the barrio general
fund, which sum shall be deducted in equal
amounts from the respective shares of the
province and municipality. Provided, that the
municipal treasurer may designate the
barrio lieutenant and/or the barrio treasurer
as his deputy to collect the said taxes. (Sec.
15, RA 2370)
2. The barrio council with the approval of a
two-thirds vote of the barrio assembly, xxx,
may raise, levy, collect and/or accept
monies and other contributions from the
following sources
 Voluntary contributions annually
from each male or female resident
twenty one years of each or over
 Licenses on stores, signs,
signboards and billboards displayed or
maintained in any place exposed to
public view except those displayed at
the place or places where profession or
business advertised thereby is in whole
or in part conducted
 A tax on gamecocks owned by
residents of the barrio and on the
R.A. 2370 – “Barrio Charter” (cont.) cockfights conducted therein. Provided,
that nothing herein shall authorize the
barrio council to permit cockfights
 Monies, materials and voluntary

labor for specific public works and
cooperative enterprises of the barrio
raised from residents landholders,
produces and merchants of the barrio
 Monies from grants-in-aids,
subsidies, contributions and revenues
made available to barrios from
municipal, provincial or national funds
 Monies from private agencies
and individuals
 An additional percentage, not
exceeding one fourth of one percent of
the assessed valuation of the property
within the barrio, collected by the
municipal treasurer along with the tax
on real property levied for municipal
purposes by the municipality and
deposited in the name of the barrio with
the municipal treasurer. Provided, that
no tax or license fee imposed by a
barrio council shall exceed fifty per
cetrum of a similar tax or fee levied,
assessed or imposed by the municipal
council. (Sec. 14, RA 2370
3. The Barrio treasurer collects all taxes
existing (except real property taxes), fees
and contributions due the barrio treasury for
which he shall issue official receipts. Xxx
(2nd par. Sec. 16, RA 2370)
September 12, 1967 1. Grants local governments greater freedom
R.A. 5185 – “Decentralization Act of 1967” and ampler means to respond to the needs
of their people and promote their prosperity
and happiness and to effect a more
equitable and systematic distribution of
governmental powers and resources. (Sec.
2, RA 5185)
2. Provincial treasurers are agent of the
Philippine National Bank (Sec. 11(I-d), RA
5185)
3. The allotment share of provinces and cities
is increased from ten to thirteen per centum
and the allotment share of municipalities is
increased from two to four per centum. The
basis of the allotment shall be the
collections during the preceding fiscal year,
to be distributed among the provinces,
cities, municipalities as follows: a) seventy
per centum on the basis of population as
shown by the latest official census, and b)
thirty per centum in proportion to the land
area. (Sec. 13, RA 5185)
June 28, 1973 The Secretary of Finance and the provincial
P.D. – “Local Tax code” (amended March 20, treasurer or the city treasurer are given
1974 by PD 426) authority to review tax ordinances and to
suspend the effectivity of any tax ordinances.
(provincial & city ordinances – Secretary of
Finance, municipal ordinances – provincial

treasurer, barrio ordinances – city treasurer.
(Sec. 44 of PD 231)
May 20, 1974 1. Code governing the appraisal and
P.D. 464 – “Real Property Tax Code” assessment of real property for purposes of
taxation by provinces, cities and
municipalities, as well as the levy, collection
and administration of the real property tax.
(Sec. 1, PD 464)
2. Provides for the levy, assessment and
collection in the provinces, cities, and
municipalities an annual ad valorem tax on
real property , such as land, buildings,
machinery and other improvements affixed
or attached to real property not specifically
exempted. (Sec. 38, PD 464)
3. Empowers provincial, city or municipal
boards or councils to fix uniform rate of real
property tax applicable to their respective
localities as follows
 In the case of the province, the tax shall
be fixed by ordinance of the provincial
board at the rate of not less than one
fourth of one percent but not more than
one half of one percent of the assessed
value of real property
 In the case of a city, the tax shall be
fixed by ordinance of the provincial
board or city council at the rate of not
less than one half of one percent but
not more than two percent of the
Cont May 20, 1974 assessed value of real property. (Sec.
P.D. 464 – “Real Property Tax Code” 39, PD 464)
4. Imposes annual tax of one percent on real
property that accrues to the Special
Education fund created under R.A. No.
5447, and is in addition to the basic real
property tax which local governments are
authorized to levy, assess and to collect
under this Code xxx (Sec. 41, PD 464)
5. Imposes an additional real property tax on
idle lands at the rate of five percent per
annum based on the assessed value of the
property as determined by the Provincial or
City Assessor of the Province or City where
the property is located, or by the Municipal
Assessor in the case of idle lands situated
in the municipalities of Metropolitan Manila.
(Sec. 42 (a), PD 464)
6. The provincial, city, municipal boards or
council may, by ordinance, provide for the
imposition and collection of a special levy
on the lands comprised within the province,
city or municipality xxx especially benefited
by the laying out, opening, constructing,
straightening, widening, grading, paving,
curbing, walling, deepening,, or otherwise
establishing, repairing, enlarging,, or

improving public avenues, roads, streets,
alleys, sidewalks, parks, plazas, bridges,
landing places, wharves, piers, docks,
levees, reservoirs, waterworks, water
courses, esteros, canals, drains and
sewers: xxx Within the meaning of this
Section, all lands comprised within the
district benefited, except lands exempt from
the real property tax under Section forty
hereof, shall be subject to the payment of
the special levy. (Sec. 47, PD 464)
7. The real property tax for any year shall
attach and become due and payable on the
first of January and from the same date said
tax and all penalties subsequently accruing
thereto shall constitute a lien upon the
property subject to such tax. Said lien shall
be superior to all other liens, mortgages, or
encumbrances of any kind whatsoever,
shall be enforceable against the property
whether in the possession of the delinquent
or any subsequent owner or possessor, and
shall be removable only by the payment of
the delinquent taxes and penalties.
8. The real property tax on properties actually,
directly and exclusively used for education
Cont May 20, 1974 purposes as provided under Presidential
P.D. 464 – “Real Property Tax Decree No. 261 shall begin to accrue on
January 1, 1975. (Sec. 56, PD 464)
9. The collection of the real property tax and
all penalties accruing thereto, and the
enforcement of the remedies provided for in
this Code or any applicable laws, shall be
the responsibility of the treasurer of the
province, city or municipality where the
property is situated. (Sec. 57, PD 464)
10. The provincial or city assessor shall prepare
and submit to the treasurer of the province,
city or municipality, on or before the thirty-
first day of December of each year, an
assessment roll containing a list of all
persons to whom real properties have been
newly assessed or reassessed and the
values of such taxable properties. (Sec 58,
PD 464)
11. The provincial or city treasurer shall, on or
before the thirty first of January each year,
cause notice of the periods during which
real property tax may be paid without
penalty.
12. The notices in their respective jurisdiction
shall be posted at the main entrance of the
provincial building or city hall of all
municipal buildings and in public
conspicuous place in each barrio, and
published in a newspaper and announced
by crier at least three times.

13. The form and detail shall be prescribed by
the Secretary of Finance: Provided,
however, that in lieu of or in addition to such
notice, the Secretary of Finance may
require notification in any province,
municipality, or city to be accomplished
through the mailing of individual tax bills
stating the amount of the annual tax due,
the quarterly installments, its due date, the
delinquency and the applicable penalty.
(Sec. 59, PD 464)
14. Real Property taxes may, in the discretion of
the taxpayer, be paid without penalty in four
installments, xxx except the special levies
authorized under Sections forty seven and
fifty five of this Code which shall be
governed by the local ordinance or
Department Order issued by the Secretary
of Finance, as the case may be.
15. Beginning with calendar year 1978 and
thereafter, the President of the Philippines
may, at his discretion or upon
Cont May 20, 1974 recommendation of the Secretary of
P.D. 464 – “Real Property Tax Finance, authorized the grant of discounts
on taxes due on real property at such rates
and for such periods as he may fix, if he
deems that the public interest so requires.
(Sec. 61, PD 464)
June 3, 1974 1. The provincial, city and municipal treasurer

P.D. 477 – “Decree on Local Fiscal shall be the chief financial officer of their
Administration” respective local governments and in such
capacity shall provide technical and staff
services to the chief executive and other
local officials in budget preparation,
authorization, execution and accountability
(Sec. 24, PD 477
2. Monies shall not be disbursed unless the
treasurer concerned certifies that
appropriations and funds are available for
the purpose. (Sec. 51, PD 477)
3. Checks in settlement of obligation shall be
drawn by the Provincial and City Treasurer,
as the case may be, and shall be
countersigned by the Provincial or City
Auditor. (Sec. 52, PD 477)
4. Provincial or City Treasurer shall be
appointed by the President of the
Philippines upon recommendation of the
Secretary of Finance. (Sec. 60, PD 477)
5. The provincial or city treasurer exercises
direct and immediate supervision,
administration and control over public
markets and the personnel thereof xxx. The
provincial treasurer shall exercise general
supervision over municipal public markets.
(Sec. 60 © of PD 477)

6. The Secretary of Finance reviews or city
budgets (Sec. 2, PD 477)
7. The Secretary of Finance reviews provincial
or city budgets (Sec. 29, PD 477)
8. The provincial treasurer reviews municipal
budgets. (Sec. 30, PD 477)
9. The Secretary of Finance may authorize
appropriations in excess of the percentage
(45% - 55%) which shall not be more than
25% of the maximum expendable amounts
nor shall such exemptions be granted in
case of overdrafts or imminence thereof.
(Sec. 28, PD 477)
August 2, 1974 The local treasurer shall prepare, for the

P.D. 526 – “Supply Management” approval of the local chief executive, an annual
August 2, 1974 procurement program for the ensuing fiscal
P.D. 526 – “Supply Management year. (Sec. 19, PD 526)
June 25, 1975 Loan applications of LGUs are submitted to the

P.D. 752 – “Credit Financing for Local Secretary of Finance for review and guarantee
Governments the loans.
November 7, 1975 1. Creates a public corporation, to be known
P.D. 827 – “Creating the Metropolitan Manila as the Metropolitan Manila, vested with
and the Metropolitan Manila Commission” powers and attributes of a corporation
including the power to make contracts, sue
and be sued, acquire, purchase,
expropriate, hold transfer and dispose of
property and such other powers as are
necessary to carryout its purposes. The
corporation shall be administered by a
Commission created under this Decree.
(Sec. 1, PD 824)
2. The Commission is given jurisdiction over
the cities of Manila, Quezon, Pasay and
Caloocan and the municipalities of Makati,
Mandaluyong, San Juan, Las Pinas,
Malabon, Navotas, Pasig, Pateros,
Paranaque, Marikina, Muntinlupa and
TAguig in the province of Rizal, and the
municipality of Valenzuela, in the province
of Bulacan, all of which together shall
henceforth be known as Metropolitan
Manila
3. All the city or municipal treasurers of the
local government units placed under the
Commission shall close their respective
books of accounts for submittal to the
Commission not later than December 15,
1975. Thereafter, their functions and
responsibilities shall be performed or
discharged by the Commission for Finance.
(Sec. 11, PD 824)
April 12, 1976 1. Division of Metropolitan Manila into Local
P.D. 921 – “Providing for the Administration of Treasury and Assessment Districts
Local Financial Services in Metropolitan  First District – Manila
Manila, creating Local Treasury and  Second Distric – Quezon City,

Assessment Districts therein” Pasig, Marikina, Mandaluyong
and San Juan
 Third District – Caloocan City,
Novotas and Valenzuela
 Fourth District – Pasay City,
Makati, Paranaque, Muntinlupa,
Las Pinas, Pateros and Taguig
(Sec. 1, PD 921)
2. Under the general direction of the
Commissioner for Finance of the MMC, the
City Treasurers of the Treasury districts
shall exercise general supervision over the
April 12, 1976 local treasury offices of the municipalities
P.D. 921 – “Providing for the Administration of belonging to their respective districts. (Sec.
Local Financial Services in Metropolitan 2, PD 921)
Manila, creating Local Treasury and 3. The power to appoint the Municipal
Assessment Districts therein” Treasurers, Assistant Municipal Treasurer of
the municipalities within the MMA shall be
vested upon the Commissioner for Finance
upon recommendation of the City Treasurer.
(Sec. 3, PD 921)
4. The City Treasurers of MMA shall be
appointed by the President of the
Philippines upon recommendation of the
Secretary of Finance. (Sec. 5, PD 921)
May 16, 1978 The Budget Commission is made responsible
P.D. 1375 – “Transferring to the Budget for the review and evaluation on the annual
Commission the functions of Local principal and supplemental budgets and other
Government Budget Administration” financial statements covering all funds of local
governments, and the review and formulation of
recommendations on resolutions of local
legislative bodies involving appropriation of
local funds. These functions presently
performed by the DOF, are hereby transferred
to the Budget Commission. (Sec. 1, PD 1373)
February 10, 1983 1. The Sangguniang Panlalawigan reviews
Batas Pambansa 337 – “The Local municipal ordinances, resolutions and
Government Code” executive orders. (Sec. 153, BP 337)
2. The Municipal Treasurer is appointed by the
Minister of Finance upon recommendation
of the Municipal Mayor, takes charges of the
municipal treasury office and acts as the
chief financial officer of the municipality.
3. The City Treasurer is appointed by the
President of the Philippines upon
recommendation of the Minister of Finance,
takes charges of the city treasury office and
acts as the chief financial officer of the city.
(Sec. 181, BP 337)
4. The Assistant City Treasurer is appointed by
the Ministry of Finance upon
recommendation of the City Mayor.
5. The Provincial Treasurer is appointed by the
President of the Philippines upon
recommendation of the Minister of Finance.
6. The Provincial Treasurer takes charge of
the disbursement and accounting of all

provincial funds and other funds the custody
of which may be entrusted to him/her by law
or other competent authority. (Sec. 212, BP
337)
7. The Assistant Provincial Treasurer is
appointed by the Minister of Finance upon
recommendation of the Provincial Governor.
(Sec. 213, BP 337)
January 9, 1990 1. The Metropolitan Authority is constituted to
E.O. 392 – “Constituting the Metropolitan cover the four (4) cities and thirteen (13)
Manila Authority” municipalities comprising the Metropolitan
Area.
2. The Authority is given jurisdiction over the
delivery of basic urban services requiring
coordination in the Metropolitan Manila.
Covered among the basic urban services
are land use, planning and zoning, traffic
management, public safety, urban
development and renewal, an management
control of operations during calamities and
emergencies affecting public welfare and
safety, and sanitation and waste
management. (Sec. 1, EO 392)
3. The authority is governed by the
Metropolitan Manila Council composed of
the Mayors of the four (4) cities and thirteen
(13) municipalities of Metropolitan Manila.
(Sec. 2, EO 392)
4. City and municipal treasurers of the local
government units comprising Metropolitan
Manila continue to collect all revenues and
receipts accruing to the Metropolitan
Manila Commission and remit the same to
the Authority. (Sec. 7, EO 392)
5. All city and municipal treasurers, municipal
assessors, their assistants, and all other
officials whose appointment was vested
upon the Metropolitan Manila Commission
shall be appointed by the President of the
Philippines, upon recommendation of the
Council, subject to the civil service law,
rules and regulations. (Sec. 8, EO 392)
January 1, 1992 1. Major powers, functions and services
R.A. 7160 – “The Local Government Code of therefore exercised by the national
1991” of “LGC” government are devolved to the LGUs.
(Sec. 17, LGC)
2. Provinces are given taxing powers. (Sec.
134, LGC)
3. Rates of levy are expanded and increased.
4. The LGUs sharing in the proceeds of real
property tax is increased.
5. IRA shares of LGUs are increased and the
formula for distribution to the LGUs revised.
6. The power of review of local tax ordinances
by the Secretary of Finance are removed
and transferred to the Sangguniang
Panlalawigan.

7. The power to appoint local treasurers is
retained by the Secretary of Finance.
March 1, 1995 1. The affairs of Metropolitan Manila are to be

R.A. 7924 – “Creating the Metropolitan Manila administered by the Metropolitan Manila
Development Authority” or “MMDA” Development Authority (MMDA), which
replaces the Metro Manila Authority. (MMA)
2. The MMDA continues to receive the Internal
Revenue Allotment (IRA) previously
allocated to the MMA (Sec. 10(b), RA 7924)
3. The MMDA is likewise empowered to levy
fines, and impose fees and charges for
various services rendered. (Sec. 10 (c), RA
7924)
4. Five percent of the total gross revenue of
the preceding year, net of the internal
revenue allotment, of each LGU covered
(per Section
July 27, 2009 1. The present Local Calamity Fund shall
henceforth be known as the Local Disaster
RA 10121 (NDRRMC) – “An Act Strengthening
Risk Reduction and Management Fund
The Philippine Disaster Risk Reduction And
(LDRRMF). Not less than five percent (5%)
Management System, Providing For The
National Disaster Risk Reduction And
of the estimated revenue from regular
Management Framework And Institutionalizing sources shall be set aside as the LDRRMF
The National Disaster Risk Reduction And to support disaster risk management
Management Plan, Appropriating Funds activities such as, but not limited to, pre-
Therefor And For Other Purposes.” disaster preparedness programs including
training, purchasing life-saving rescue
equipment, supplies and medicines, for
post-disaster activities, and for the payment
of premiums on calamity insurance. The
LDRRMC shall monitor and evaluate the
use and disbursement of the LDRRMF
based on the. LDRRMP as incorporated in
the local development plans and annual
work and financial plan. Upon the
recommendation of the LDRRMO and
approval of the sanggunian concerned, the
LDRRMC may transfer the said fund to
support disaster risk reduction work of other
LDRRMCs which are declared under state
of calamity.
2. Of the amount appropriated for LDRRMF,
thirty percent (30%) shall be allocated as
Quick Response Fund (QRF) or stand-by
fund for relief and recovery programs in
order that situation and living conditions of
people In communities or areas stricken by
disasters, calamities, epidemics, or
complex emergencies, may be normalized
as quickly as possible.
3. Unexpended LDRRMF shall accrue to a
special trust fund solely for the purpose of
supporting disaster risk reduction and
management activities of the LDRRMCs
within the next five (5) years. Any such
amount still not fully utilized after five (5)

years shall revert back to the general fund
and will be available for other social
services to be identified by the local
sanggunian.
January 10, 2003 1. All procurement of the national

government, its departments, bureaus,
RA 9184 (Procurement Law) – “An Act Providing
offices and agencies, including state
For The Modernization, Standarization And
universities and colleges, government
Regulation Of The Procurement Activities Of The
Government And For Other Purposes”
-owned and/or-controlled corporations,
government financial institutions and local
government units, shall, in all cases, be
governed by these principles:
2. Transparency in the procurement process
and in the implementation of procurement
contracts.
3. Competitiveness by extending equal
opportunity to enable private contracting
parties who are eligible and qualified to
participate in public bidding.
4. Streamlined procurement process that will
uniformly apply to all government
procurement. The procurement process
shall simple and made adaptable to
advances in modern technology in order to
ensure an effective and efficient method.
5. System of accountability where both the
public officials directly or indirectly involved
in the procurement process as well as in
the implementation of procurement
contracts and the private parties that deal
with government are, when warranted by
circumstances, investigated and held liable
for their actions relative thereto.
6. Public monitoring of the procurement
process and the implementation of
awarded contracts with the end in view of
guaranteeing that these contracts are
awarded pursuant to the provisions of this
Act and its implementing rules and
regulations, and that all these contracts are
performed strictly according to
specifications.
GAAM
May 21, 2009 1. The province may levy an amusement tax

to be collected from the proprietors,
RA 9640 (Amusement Tax) –An Act Amending
lessees, or operators of theaters, cinemas,
Section 140 (A) Of Republic Act No. 7160,
concert halls, circuses, boxing stadia, and
Otherwise Known As “The Local Government
Code Of 1991”
other places of amusement at a rate of not
more than ten percent (10%) of the gross
receipts from the admissions fees
2. In the case of theaters or cinemas, the tax

shall first be deducted and withheld by their

proprietors, lessees, or operators and paid
to the provincial treasurer before the gross
receipts are divided between said
proprietors, lessees, or operators and the
distributors of the cinematographic films.
3. The holding of operas, concerts, dramas,

recitals, paintings, and art exhibitions,
flower shows, musical programs, literary
and oratorical presentations, except pop,
rock, or similar concerts shall be exempt
from the payment of the tax herein
imposed.
4. The sangguniang panlalawigan may

prescribe the time, manner, terms and
conditions for the payment of tax. In case of
fraud or failure to pay the tax, the
sangguniang panlalawigan may impose
such surcharges, interest and penalties as
it may deem appropriate.
5. The proceeds from the amusement tax

shall be shared equally by the province and
the municipality where such amusement
places are located."
February 24, 2001 1. A municipality or a cluster of barangays
may be converted into a component city if it
RA 9009 – “An Act Amending Section 450 Of
has a locally generated average annual
Republic Act No. 7160, Otherwise Known As
income, as certified by the Department of
The Local Government Code Of 1991, By
Increasing The Average Annual Income
Finance, of at least One hundred million
Requirement For A Municipality Or Cluster Of pesos (P100,000,000) for the last two (2)
Barangays To Be Converted Into A Component consecutive years based on 2000 constant
City” prices, and if it has either of the following
requisites:
 a contiguous territory of at least one

hundred (100) square kilometers, as
certified by the Land Management
Bureau; or
 a population of not less than one

hundred fifty thousand (150,000)
inhabitants, as certified by the
National Statistics Office.
2. The creation thereof shall not reduce the

land area, population and income of the
original unit or units at the time of said
creation to less than the minimum
requirements prescribed herein.
3. The territorial jurisdiction of a newly-created

city shall be properly identified by metes
and bounds. The requirement on land area
shall not apply where the city proposed to
be created is composed of one (1) or more

islands. The territory need not be
contiguous if it comprises two (2) or more
islands.
4. The average annual income shall include

the income accruing to the general fund,
exclusive of special funds, transfers, and
non-recurring income."
GAM Book 2
RA 6938 (Cooperative Code of the Phils) as 1. A cooperative is an autonomous and duly

amended registered association of persons, with a
common bond of interest, who have
RA 9520 (Philippine Cooperative Code) – An Act
voluntarily joined together to achieve their
Amending The Cooperative Code Of The
Philippines To Be Known As The "Philippine
social, economic, and cultural needs and
Cooperative Code Of 2008" aspirations by making equitable
contributions to the capital required,
patronizing their products and services and
accepting a fair share of the risks and
benefits of the undertaking in accordance
with universally accepted cooperative
principles.
2. It is the declared policy of the State to

foster the creation and growth of
cooperatives as a practical vehicle for
promoting self-reliance and harnessing
people power towards the attainment of
economic development and social justice.
The State shall encourage the private
sector to undertake the actual formation
and organization of cooperatives and shall
create an atmosphere that is conducive to
the growth and development of these
cooperatives.
3. Toward this end, the Government and all its

branches, subdivisions, instrumentalities
and agencies shall ensure the provision of
technical guidance, financial assistance
and other services to enable said
cooperatives to develop into viable and
responsive economic enterprises and
thereby bring about a strong cooperative
movement that is free from any conditions
that might infringe upon the autonomy or
organizational integrity of cooperatives.
4. Further, the State recognizes the principle

of subsidiarity under which the cooperative
sector will initiate and regulate within its
own ranks the promotion and organization,
training and research, audit and support
services relative to cooperatives with
government assistance where necessary.
RRACCS

BLGF CENTRAL OFFICE DIRECTORS
JOCELYN T.PENDON
OIC – Executive Director
ATTY. FLOSIE F. FANLO TAYAG, CESO IV JOSE ARNOLD M. TAN, CESO V

Deputy Executive Director for Administration Deputy Executive Director for Operations
ARMI M. ADVINCULA, CESE MA. PAMELA P. QUIZON

Director II OIC – Director
Administration, Financial and Management Service Local Fiscal Policy Service
NIÑO RAYMOND B. ALVINA

Director II
Local Government Units Operations Service
TECHNICAL WORKING GROUP:
CONSOLACION Q. AGCAOILI DIVINA M. CORPUZ

OIC – Regional Director OIC – Regional Director
BLGF Region I BLGF Region III
GUALBERTO B. BERNAS IV AMALIA C. SANTOS

OIC – City Treasurer Parañaque City OIC – City Treasurer, Makati City
ENCARNACION E. SANTIAGO JOSEPHINE A. ASEO

OIC – City Treasurer, Navotas City OIC – Chief
Local Treasury Operations Division
TOMAS R. CARILLO BRENDA L. MIRANDA

Chief OIC – Chief
Policy, Planning, Programming and Standard Division Local Debt Monitoring and
Evaluation Division
RODERIC R. RAÑESES ALJIENAR J. BALIWAG

Local Treasury Examiner II Administrative Assistant III

BLGF REGIONAL DIRECTORS
MR. CARMELANE G. TUGAS MS. CONSOLACION Q. AGCAOILI

OIC-Regional Director OIC-Regional Director
BLGF CAR BLGF Region 1
MS. TERESITA S. ATUEL MS. DIVINA M. CORPUZ

BLGF Region II BLGF Region III
MR. GEORGE T. ROMA MS. AIDA D. ABREGANA

BLGF Region IV-A (CALABARZON) BLGF Region IV-B (MIMAROPA)
MR. RICARDO T. CAWED MR. GILBERT B. GUMABAY

BLGF Region V BLGF Region VI
MS. MERCY N. SANTOS MR. PETER PAUL D. BALUYAN

BLGF Region VII BLGF Region VIII
MS. REMA E. CALDERON MR. HERMINIGILDA G. GARSULA

BLGF Region IX BLGF Region X
MS. LUNINGNING R. LLANTO MS. TESSIE S. MANGACCAT

BLGF Region X BLGF Region XI
MR. EDUARDO L. DEL ROSARIO

OIC-Regional Director
BLGF Region XIII

CONTRIBUTORS:
ANASTACIA R. LLANETA ILUMINADA B. DIMAYUGA

Financial Analyst IV, BLGF Region 5 Local Assessment Operations Officer IV
BLGF Region 4-A
CYNTHIA G. FAURILLO DENNIS T. CUNAG
Local Treasury Operations Officer IV Local Treasury Operations Officer IV
BLGF Region 5 BLGF Region 4-B
NEMIA D. SEGOVIA TROADIO P. BARRADAS

Local Treasury Operations Officer IV Local Treasury Operations Officer IV
BLGF Region 5 BLGF Region 4-B
MARIA RHODORA C. GASCON EILEEN M. VILLAGRACIA

Financial Analyst IV, BLGF Region 6 Special Investigator III BLGF
Region XI
JUNE ANN C. ABELLA
Financial Analyst IV, BLGF Region 7 LINA R. REOYAN
Asst. Provincial Treasurer, Masbate
MARILOU Q. CAÑETE
Local Treasury Operations Officer IV CONCEPCION M. BENAVIDEZ
BLGF Region 7 Municipal Treasurer, Virac, Catanduanes
LILIAN B. AGTULAO AMIE C. CASTELO

Local Treasury Operations Officer III Asst. Municipal Treasurer, Tiwi, Albay
BLGF CAR
NILDA V. GENEROSO
SUSAN S. NISPEROS Provincial Treasurer, Negros Occidental
Local Treasury Operations Officer IV
BLGF Region I ROSALIA C. AGUILING
Acting Asst. Provincial Treasurer, Iloilo
CATHERINE B. GUTIERREZ
Local Treasury Operations Officer III ATTY. AMY GRACE O. BOLIVAR
BLGF Region I City Treasurer, San Carlos City
MAYVELYN N. RODRIGUEZ ELSIE S. JIMENEA

Local Treasury Operations Officer III City Treasurer, Silay City
BLGF Region I
MA. CRISTINA G. FUENTES
MARILYN F. RONQUILLO City Treasurer, Cadiz City
Financial Analyst IV, BLGF Region I
AYLIN C. PARADO
LINA T. DIVINA Asst. Municipal Treasurer, Consolacion, Cebu
Local Treasury Operations Officer III
BLGF Region III DELIA C. VILBAR
Asst. City Treasurer, Ormoc City
ENGRACIO S. MAGSINO JR.
Local Treasury Operations Officer III ZOSIMA A. CORDANO
BLGF Region III City Treasurer, Tacloban City
NORMA M. MALLARE ELIZABETH A. LIM

Local Treasury Operations Officer IV City Treasurer, Catbalogan City
BLGF Region 4-A
HARRIET I. FLORENCIO

Municipal Treasurer, Barauen, Leyte Asst. City Treasurer, Baguio City
CHARITA B. PACAYRA JOSEPHINE P. CALAJATE

Municipal Treasurer, Calbiga, Samar Provincial Treasurer, Ilocos Norte
LIBERTO Y. YUSORES ROMELITA F. ALCANTARA

OIC-Municipal Treasurer, Caramoran, City Treasurer, Dagupan City
Catanduanes
JOSEFINA J. CARANTO
REYMUNDO F. QUIÑONES City Treasurer, San Carlos City
Municipal Treasurer, Gubat, Sorsogon
EDMAR C. LUNA
AUGUSTO CEASAR E. ERMIÑO City Treasurer, San Fernando City
Asst. Municipal Treasurer, Gubat, Sorsogon
NENITA B. COLOMA
DIOSDADO V. LLOSALA Municipal Treasurer Solsona, Ilocos Norte
Municipal Treasurer, Castilla, Sorsogon
SEGUNDINO O. URBANO
Municipal Treasurer, Nueva Era, Ilocos Norte
RICARDO E. BADILLO
ICO-City Treasurer, Masbate City AMI RUEL S. COLOMA
Municipal Treasurer, Pinili, Ilocos Norte
REY C. VILLARUEL
OIC-Municipal Treasurer, Kalibo, Aklan HUBERT MAURICIO A. PAZ
Municipal Treasurer, Bantay, Ilocos Sur
RIC D. TAN
Provincial Treasurer, Siquijor
ISIDRO II A. FERNANDEZ
Municipal Treasurer, Umingan, Pangasinan
ATTY. REGAL M. OLIVA
City Treasurer, Mandaue City
JULIET G. QUINSAAT
City Treasurer, Angeles City
ALLAN G. VALENCIANO
Provincial Treasurer, Northern Samar
ELVIRA M. REYES
MERLINDA L. MARQUEZ City Treasurer, Tagaytay City
Municipal Treasurer, Malitbog, Southern Leyte
ATTY.EDITH C. NAPALAN
GERARDO AVORQUE City Treasurer, Bacoor City
ICO-Provincial Treasurer, Leyte
FERNANDO M. MANZANERO
ISABELO B. BELISARIO Asst. City Treasurer, Tanauan City
Acting Assistant Provincial Treasurer
ARJAN V. BABANI
WILMA K. IKITAN ICO-City Treasurer, San Pablo City
Municipal Treasurer, Calanasan, Apayao
ALEXANDER L. BEJOSANO
IMELDA I. MACANES Municipal Treasurer, Los Baños, Laguna
Provincial Treasurer, Benguet
MINERVA V. BOONGALING
STEAWART B. BACCAY Municipal Treasurer, Pagsanjan, Laguna
Acting Provincial Treasurer, Ifugao
MOHAYLA B. AMUD
CAWED A. GAMONNAC
Local Treasury Operations Officer IV,
Provincial Treasurer, Mt. Province
BLGF Region IX
ALEX B. CABARRUBIAS

JEAN B. DAANG ADELINDA B. AMACNA
Local Treasury Operations Officer IV Provincial Treasurer, Davao Oriental
BLGF Region X
LYDIA R. PADILLA MERLINA G. CABALLERO
Local Treasury Operations Officer II City Treasurer, Island Garden City Of Samal
BLGF Region XI
MARTHA FLOR D. DE RAMOS
MIMBAI M. MANGELEN Municipal Treasurer, Sto. Tomas, Davao Del
Local Treasury Operations Officer IV Norte
BLGF Region XII
JESSIE A. CONCEPCION
Provincial Treasurer, Zamboanga Del Norte
ALEXANDER U. DIMAPORO
SUSAN S. YAMBA Municipal Treasurer, Amai Manabilang, Lanao
Provincial Treasurer, Zamboanga Del Sur Del Sur
JOJO M. MAR MARLOUN C. GUMBAO

OIC – Provincial Treasurer, Tawi-Tawi City Treasurer, Koronadal City
SANCEN D. CARORO RODILON G. LACAP

City Treasurer, Dipolog City ICO – City Treasurer, General Santos City
PURA R. NUÑAL MANOLITO S, FILIPINAS

City Treasurer, Isabela City Provincial Treasurer, Cotabato Province
GLENN C. BAÑEZ PERLITA S. SEARES

OIC – City Treasurer, Cagayan De Oro City OIC – Provincial Treasurer, Sultan Kudarat
Province
LOUELA S. MAYBITUIN
City Treasurer, Iligan City TADJUDIN A. BATUA-AN
OIC – Provincial Treasurer, Lanao Del Sur
MILDRED J. HINGCO
Provincial Treasurer, Lanao Del Norte ALVIN G. ELORDE
OIC – Provincial Treasurer, Agusan Del Sur
ELMA B. GULA
Provincial Treasurer, Misamis Occidental ANNABELLE S. NALUAN
Provincial Treasurer, Dinagat Islands
MERCELITA A. BARAN
Municipal Treasurer, Lala, Lanao Del Norte MA. GAY Y. COTIANGCO
ICO – Provincial Treasurer, Surigao Del Norte
JUAN DESIDERIO U. PANADERO
Municipal Treasurer, San Fernando, Bukidnon JINKY H. LADIA
Acting Assistant City Treasurer, Bayugan City
REGINA C. RICAFORT
Provincial Treasurer, Davao Del Norte MA. REMA Q. CABUSAO
Acting Assistant City Treasurer, Butuan City
MA. LYDIA M. ELLICA
ICO – Provincial Treasurer, Davao Del Sur

REFERENCES
1. The Local Government Code of 1991, Annotated, Jose A. Nolledo, 1993 Reprint with
August 1993 Addendum;
2. Local Government Taxation ( Philippine Laws on Local Government Finance),

Vol. III, Annotated, Sofronio B. Ursal, 1992;
3. Philippine Law on Local Government Taxation, Annotated, Sofronio B. Ursal, 2000;
4. Real Property Taxation, Annotated, Atty. Florecita P. Flores and Antonio A. Avila, Jr.,
First Edition, 2002;
5. Local Taxation and Fiscal Matters, Book II, LGC of 1991, PACTAA, Inc., 1992;
6. Local Government Code of the Autonomous Region in Muslim Mindanao (Muslim

Mindanao Autonomy Act No. 25);
7. Decentralization in the Philippines – Strengthening Local Government Financing

and Resource Management in the Short-Term, Joint Document of the World Bank
and Asian Development Bank, March 31, 2005;
8. Omnibus Election Code of the Philippines (BP 881), Commission on Elections

(COMELEC), 1992;
9. Omnibus Rules Implementing Book V of EO 292, as Amended by MC No. 41, s.

1998, Civil Service Commission (CSC);
10. State Audit Code (Government Auditing Code of the Philippines or PD 1445),
Reprinted 1999, Accounting and auditing Development Office, Commission on Audit
(COA);
11. Government Accounting and Auditing Manual (GAAM), Vol. 1, Government

Auditing Rules and Regulations, COA, 1992;

Accounting, COA, 1992;

Auditing Standards and Procedures, and Internal Control System, COA, 1992;
14. Manual on the New Government Accounting System (NGAS) for Local
Government Units, Vol. I – III, Professional Development Center, COA, 2002;
15. Updated Description of Accounts under the NGAS (COA Circular No. 2004-008),
Sept. 20, 2004;
16. 2005 IFAC Handbook of International Public Sector Accounting Standards

(IPSAS);
17. Handbook on the Implementing Rules and Regulations (IRR) to the Government
Procurement Reform Act (RA No. 9184);
18. Updated Budget Operations Manual (UBOM) for Local Government Units,
Department of Budget and Management (DBM), June 2005;
19. Management Services, Part II, 2nd Ed., Nenita Angeles Deaño-Mejorada, 1993;
20. Manual on Certificate of Settlement and Balances, Revised 1993, COA, 1993;
21. Rules Implementing the Barangay Micro-Business Enterprises (BMBE Act of

2002 or RA 9178), Department of Finance (DOF) Order No. 17-04;
22. Local Administrative Regulation (LAR) No. 1-85, DOF, 1985;
23. Training Handbook on Cash Management and Control System, Professional

Development Center, COA, May 2004;
24. Training Handbook on Internal Control Structure, Professional Development

Center, COA, Nov. 2002;
25. Training Handbook on Risk Management, Professional Development Center, COA,

Dec. 2004;
26. Revenue Audit Manual for Local Governments, Vol. I, COA, 1997;
27. DOF Circulars, Memoranda, Opinions, and Rulings, various years;
28. BLGF Circulars, Memoranda, Circular Letters, Opinions, and Rulings, various
years;
29. COA Circulars and Memoranda, various years.

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UPDATED

LOCAL TREASURY OPERATIONS

Fiscal Organization of Local

Copyright © Bureau of Local Government Finance, 2016

Bureau of Local Government Finance

First Printing, 2008.

All rights reserved.

Printed in the Philippines

Updated Local Treasury Operations Manual (LTOM) 2

This manual shall be a work in progress integrating pertinent progressive laws,

Mabuhay and More Power.

Updated Local Treasury Operations Manual (LTOM) 3

1. Major Changes in Fiscal Organization Since the LTOM was Issued

Updated Local Treasury Operations Manual (LTOM) 4

2. Relationship of the Manual to Existing Laws, Issuances and Pronouncements of

C. OBJECTIVES OF THIS MANUAL

The objectives of this MANUAL are as follows:

D. BRIEF DESCRIPTION THIS MANUAL

Updated Local Treasury Operations Manual (LTOM) 5

The content and description of each book is briefly presented below:

BOOK ONE: FISCAL ORGANIZATION OF LOCAL GOVERNMENTS AND THE LOCAL

Book One is consist of five (5) Chapters including Annexes, viz:

Chapter 1. Fiscal Organization of Local Governments and the Local Treasurer

Chapter 3. Roles, Duties and Responsibilities of the Local Treasurer

Chapter 4. Bonding of Local Treasurers and other LGU Accountable Officers

Chapter 5. Administrative and Technical Supervision by the Bureau of Local Government

Chapter 1. Income from Local Sources

Chapter 2. Income from External Sources

Chapter 3. Collection Procedures

Updated Local Treasury Operations Manual (LTOM) 6

Forms and Annexes

BOOK THREE: FUND MANAGEMENT PRACTICES, EXPENDITURES AND

Chapter 1. Concept of Funds

Chapter 2. Concept of Appropriation, Allotment and Obligation

Chapter 3. Disbursement of Local Funds

Chapter 4. Fund Management Practices

Chapter 5. Responsibility, Accountability and Liability of Local Treasurers for Funds

Chapter 6. Examination of Accounts by the Commission on Audit

Chapter 8. Administrative, Civil and Criminal Liabilities of Local Treasurers in the

Forms and Annexes

BOOK FOUR: DETAILED PROCEDURES ON THE ADMINISTRATION AND COLLECTION OF

Chapter 1. Real Property Taxation

Chapter 2. Business and Other Local Taxes: Taxing Powers of Provinces

Chapter 3. Business and Other Local Taxes: Taxing Powers of Municipalities

Updated Local Treasury Operations Manual (LTOM) 7

Chapter 5. Business and Other Local Taxes: Taxing Powers of Barangays

Chapter 7. The Community Tax

Chapter 8. Specific Applications of Authority to Tax Franchises

Chapter 9. Fees and Charges

Chapter 10. Local Government Enterprise Operations

Chapter 11. Credit Financing and Alternative Sources of Funds

Forms and Annexes

Updated Local Treasury Operations Manual (LTOM) 8

Updated Local Treasury Operations Manual (LTOM) 9

ACR - Abstract of Collection Report

Updated Local Treasury Operations Manual (LTOM) 10

Updated Local Treasury Operations Manual (LTOM) 11

Updated Local Treasury Operations Manual (LTOM) 12

Chapter 1. FISCAL ORGANIZATION OF LOCAL GOVERNMENT UNITS (LGUs).....................15

Chapter 2. QUALIFICATIONS AND APPOINTMENT OF THE LOCAL TREASURER AND THE

Chapter 3. ROLES, DUTIES, AND RESPONSIBILITIES OF THE LOCAL TREASURER...........37

Chapter 4. BONDING OF LOCAL TREASURERS AND OTHER LGU ACCOUNTABLE

Updated Local Treasury Operations Manual (LTOM) 13

Chapter 5. ADMINISTRATIVE AND TECHNICAL SUPERVISION BY THE BUREAU OF LOCAL