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BCLTE Slides

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10 views33 pages

BCLTE Slides

Uploaded by

raymundoellen71
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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BCLTE

SIMPLE TIPS
Usual Topics
● Qualifications of Local Treasurer/Assistant Treasurer
● Creation, division, merger, abolition, and conversion of LGUS
● Roles & Responsibilities
● Bond
● Taxing powers of LGU’s
● Trust fund
● SEF
● Local Budget Process
● Unlawful expenditures
● Audit Opinions
● Credit Financing
● SRE/eSRE
● Tax computation
● Local Government Code
● RA 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees
Qualifications of Local Treasurer/Assistant
Treasurer
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.
● President- General Supervision of LGUs
● Secretary of Finance- Appointment of Treasurer
● Local Chief Executive- administrative
supervision/recommendation

Performance Rating – based on the last two


(2)Performance Ratings of the recommendee, which
should at least be Very Satisfactory
● Permanent vacancy- Acting Treasurer/Asst.
● Temporary- OIC, ICO
Creation, division, merger, abolition, and
conversion of LGUS

●A rea- LMB

●P opulation- PSA

●Income- DOF
Roles & Responsibilities

● Roles in Boards and Committees


1. LFC- Planning, Budget, Treasurer
2. Board of canvassers- member
3. BAC-not mandatory member
4. School Boards-Member
5. Committee on Appraisal- Chairman
● Manual for the Evaluation of Local Treasury Operations
(MELTO)- 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.
Bond
● 100M Pesos- maximum accountability of each accountable
public officer
● Rate of premium- 1.5% of the amount of bond but shall
not be less than P 150.00.
✔ Cash- 75%
✔ Equipments- 30%
✔ Accountable forms- 10%
● Fidelity bond- non transferrable, renewed every 1 year
Taxing powers of LGU’s
Taxing powers of LGU’s
Taxing powers of LGU’s
Trust Fund
● Used for specific purpose
● Who certifies the disbursements made under trust fund?
○ Department head
○ Accountant
○ Treasurer
○ Approval by administrator of fund
SEF
● An additional annual tax on RP added on basic RPT (1%
maximum)
● Application of proceeds?
○ Maintenance of school buildings/equipment
○ Educ research
○ Books
○ Sports development
Local Budget Process
Unlawful Expenditures
● Irregular Expenditures- against Rules and Regulations
○ Christmas bonus on non employed individuals
● Unnecessary Expenditures – not essential
○ Overtime pay to non urgent matters
● Excessive-exceed the usual expenses/ unreasonable price (>10% of market
value)
○ Overpricing of bought equipment
● Extravagant- lavish, luxurios
● Unconscionable- violates the ethical and moral standards
Audit Memo/ Notice
● Audit Observation Memorandum (AOM) – issued if
there is a deficiency which do not involve
pecuniary loss
● Notice of disallowance- IUIEEU
● Person responsible- answerable for Notice of
Suspension
● Person Liable- answerable for an audit disallowance
Audit Opinions
Credit Financing

● Sec. 296 of LGC, Art. 395 LGC IRR


○ LGUs may create indebtedness and avail of credit facilities for local
infra and socio-economic development projects with government or
private banks and lending institutions
● Sec. 324 of LGC
○ Appropriations of 20% of the LGU’s regular income for debt servicing
● EO 127
○ BLGF to develop and promote plans and programs for the
improvement of resource management systems, collection
enforcement mechanisms and credit utilization schemes at the local
levels
Monitoring of LGU Debts
● A core responsibility of DOF is to determine the systemic
risks of LGU debt levels. There is no bankruptcy law for
LGUs that would provide legal protection for the people of
an LGU whose Internal Revenue Allotment (I will be
collected by banks or bondholders in the event of default
by the LGU. By monitoring the systemic risks of LGU debt
levels, DOF can give early warning signals to investors and
lenders including regulators like the BSP
Debt Service Ceiling (DSC)
• The maximum amount that an LGU can appropriate in the
annual budget for the payment of its loan statutory and
contractual obligations.
•20% x Annual Regular Income (ARI)
ARI is the average previous 3-year locally sourced income
+ other shares from national taxes based on COA data +
actual annual IRA based on DBM data
Borrowing Capacity (BC)
● The maximum loanable amount for a given period of time
at a specified rate of interest.

NDSC x Annuity Factor

Net DSC= DSC less All amortizations payable during the year
SRE/eSRE
● Submission date?
○ DOB 8-2011- 20th day of the month following the end of the quarter
for the 1st 3 quarters, before Feb 28 for year end report.
○ DOB 34-2014- 20th day of the month following the end of the quarter
for the 1st 3 quarters, before March 31 for year-end report.
eSRE
● Late Submission- light offense
○ 1st offense- Reprimand
○ 2nd offense-Suspension 1-30 days
○ 3rd offense- dismissal

● Submission of incorrect data-less grave offense


○ 1st offense- suspension 1 day – 6 months
○ 2nd offense- dismissal
National Tax Alotment (prev. IRA)
Tax computation
Income per capita:

__LSR+ SEF__
Population
Calculating Annual Regular Income
▷Real Property Tax
▷Business Tax
▷Fees and Charges
▷Receipts from Economic Enterprises
▷IRA
▷Other Share from Nat’l Tax Collection
▷Other Income (Interest Income)
Calculating Revenue Growth

Total Revenue y1- Total Revenue y0 X 100


Total Revenue y0
Debt Service Ratio

Debt Service Payment


X 100
Annual Regular Income
Laws & Legal Frameworks

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