04 - Institutional Development Sector Mamgamboa PDF
04 - Institutional Development Sector Mamgamboa PDF
04 - Institutional Development Sector Mamgamboa PDF
INSTITUTIONAL DEVELOPMENT
SECTOR
ATTY. MARK ANTHONY M. GAMBOA, EnP
[email protected]
25 April 2016
OUTLINE
q PART 1: Preliminaries
q PART 2: General Local Administration
q PART 3: Powers, Mandates, and Structures
q PART 4: Local Fiscal Administration
q PART 5: Local Legislation/Policy-Making
q PART 6: Networks and Relations
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PART 1: PRELIMINARIES:
AN OVERVIEW OF THE INSTITUTIONAL DEVELOPMENT
SECTOR
Part 1:
OVERVIEW PRELIMINARIES
Powers, Local
Mandates Fiscal
& Structure Administration
INSTITUTIONAL
SECTOR
Local
Legislation/Policy- Networks
Making & Relations
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Part 1:
INSTITUTIONS ORGANIZATIONS
² “rules of the game” ² “the players”
² those that constrain or ² work within, or are
regulate (on a positive note, influenced by, the
promote) certain behaviors institutional context
² “Meaning” and “Control” ² “Association” and “Action”
IMPORTANT?
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IMPORTANT?
Natural Institutional
Environment Development
Physical/ Social
Infrastructure Development
Economy
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INSTITUTIONAL Part 1:
PRELIMINARIES
DEVELOPMENT PLAN
• Strengthening the capability of the local government
bureaucracy as well as elected officials to plan and manage
the development of the municipality
• Manpower development, fiscal management and program/
project management are the vital components of this
sectoral plan
• Promote the involvement of voluntary groups or civil society
organizations in the preparation, implementation, monitoring
and evaluation of the different sectoral programs, projects
and activities
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INSTITUTIONAL Part 1:
PRELIMINARIES
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INSTITUTIONAL Part 1:
PRELIMINARIES
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N
A
OF PLANS
T
I MTPDP
O NFPP PIP
N (or PDP)
A
L
NGA Plans &
R Programs
E
G
I
O RPFP RDP RDIP
N
A
L
Regional
P
R Plans & Programs
O
V
L PPFP/
/ P/C CDP PDIP/CDIP
C
I
P/C CLUP
T
Y Provincial/City
C Plans & Programs
I
T
Y
/
M
C/M CLUP C/M CDP LDIP
U
N
C/M Plans &
Programs ©2016 MAMGamboa
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PART 1:
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FOR PLANNING
NEDA NEDA
NATIONAL
BOARD SECRETARIAT
NEDA REGIONAL
REGIONAL RDCs
OFFICES
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NEDA
SECRETARIAT
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EO 257, s. 2003
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EO 770, s. 2008 and EO 770-A, s. 2009
EO 325, s. 1996
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• Representatives of the
§ Regional Directors of agencies
• All provincial governors and city accredited private sector and
represented in the NEDA Board
mayors, mayors of NGOs based in the region.
(NEDA, DAR, DA, DBM,
municipalities designated as • At least one PSR shall come
DENR, DOF, DFA, DOH, DILG,
provincial capitals, and mayors from the labor sector (EO No.
DOLE, DPWH, DOST, DTI,
of municipalities designated as 384, 1996)
DOTC, BSP
regional center; • Their total representation shall
§ Regional Directors of DepEd,
• All presidents of the provincial comprise one- fourth of the
DSWD , DOT , CHED, and
league of mayors; members of the fully
TESDA
constituted Council
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Chair Co-Chair
(Government/LCE) (PSR)
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EO 325, s. 1996
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EO 325, s. 1996
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q various committees and councils q assist the RDC coordinate, monitor and evaluate their respective
Affiliate
organized to carry out national specific concerns
Committees and agency programs
EO 325, s. 1996
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P
FOR PLANNING: Local Level
O LOCAL LOCAL CHIEF
LOCAL
L SANGGUNIAN EXECUTIVE
DEVELOPMENT
I COUNCIL
LOCAL
T SPECIAL
I EXECUTIVE
BODIES
C COMMITTEE
A
L OTHER LGU
LPDO
DEPARTMENTS
SECTORAL TECHNICAL
DEVELOPMENT WORKING
COMMITTEES GROUPS
T
E
C SOCIAL
H
N ECONOMIC
I
C
A ENVIRONMENTAL
L
PHYSICAL
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INSTITUTIONAL MECHANISMS
FOR PLANNING: Local Level
BODY Composition LGU Level Functions
LDC’s • Province Province • Ensure that the decision of the council are
EXECUTIVE • Governor as chairman City/ Municipality faithfully carried out and implemented;
COMMITTEE • representative of mayors to be Barangay • Act on matters requiring immediate
chosen from among themselves attention or action by the council;
• chairman of the committee on • Formulate policies, plans, and programs
appropriations based on the general principles laid down
• president of the provincial league by the council; and
of barangays • Act on other matters that may be
• NGO rep authorized by the council.
• City/Municipality
• mayor as chairman
• chairman of the committee on
appropriations
• president of the city or municipal
league of barangays
• NGO rep
• Barangay
• punong barangay as chairman a
representative of the sangguniang
barangay
• a representative of non-
governmental organizations
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INSTITUTIONAL MECHANISMS
FOR PLANNING: Local Level
Body Composition LGU Level Functions
SECRETARIAT • Planning and Development Province • Provide technical support to the LDC
Coordinator/Office City/ Municipality • Document proceedings
Barangay • Prepare reports
• Other support functions as may be
necessary
SECTORAL OR • Social • Assist the LDC in the performanc of its
FUNCTIONAL • Economic functions
COMMITTEES • Physical/Land Use • Provide the LDC with data and
• Environment information essential to the formulation
• Institutional of plans, programs, and activities
• Define sectoral or functional objectives,
set targets and identify programs,
projects, and activities
• Collate and analyze data and conduct
studies
• Conduct publiic hearings on sectoral
planning, projects and activities
• Monitor and evaluate programs and
projects
• Perform functions assigned by the LDC
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NOT for reproduction, distribution, or attribution. For lecture purposes only
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BASICS
PART 2:
GENERAL LOCAL
ADMINISTRATION
OF LOCAL GOVERNANCE
Public Corporations
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BASICS PART 2:
GENERAL LOCAL
ADMINISTRATION
OF LOCAL GOVERNANCE
q Local governments and municipal corporations have dual
nature: governmental or public and proprietary.
² Public character: LGs serve as instrumentalities of the State in
carrying out the functions of the government.
² Proprietary: LGs act as agencies of the community in the
administration of local affairs.
o act as business corporations and as separate entities for the furtherance of
their own interests and not as subdivisions or units of the State (Lidasan
vs. COMELEC, 1967).
o As private corporate entities, local governments manage public utilities
q Local governments constitute the foundation of the entire
structure of the government
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BASICS
PART 2:
GENERAL LOCAL
ADMINISTRATION
OF LOCAL GOVERNANCE
LOCAL AUTONOMY
Decentralization
Decentralization Decentralization
of ADMINISTRATION of POWER
BASICS
PART 2:
GENERAL LOCAL
ADMINISTRATION
OF LOCAL GOVERNANCE
National
Government
ARMM
Provinces
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BASICS
PART 2:
GENERAL LOCAL
ADMINISTRATION
OF LOCAL GOVERNANCE
q CITY CLASSIFICATION
² Highly Urbanized Cities - Cities with a minimum population of two hundred
thousand (200,000) inhabitants, as certified by the National Statistics Office,
and with the latest annual income of at least Fifty Million Pesos
(P50,000,000.00) based on 1991 constant prices, as certified by the city
treasurer (e.g. Metro Manila cities, Cebu, Mandaue and Davao).
² Independent Component Cities - Cities whose charters prohibit their voters
from voting for provincial elective officials. Independent component cities are
independent of the province. (Naga, Santiago [Isabela], Ormoc [Leyte],
Cotabato City [Maguindanao], Dagupan [Pangasinan].
² Component Cities - Cities which do not meet the above requirements are
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 used to be a municipality (e.g. San Fernando, Alaminos, Tarlac, Dipolog)
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BASICS
PART 2:
GENERAL LOCAL
ADMINISTRATION
OF LOCAL GOVERNANCE
INCOME: must be sufficient, based on acceptable standards, to provide for all
essential government facilities and services and special functions commensurate
with the size of its population, as expected of the local government unit concerned
LAND AREA: must be contiguous, unless it comprises two (2) or more islands or is
separated by a local government unit independent of the others; properly identified by
metes and bounds with technical descriptions; and sufficient to provide for such basic
services and facilities to meet the requirements of its populace
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BASICS
PART 2:
GENERAL LOCAL
ADMINISTRATION
OF LOCAL GOVERNANCE
Province HUC City Municipality Barangay
The province, The city, consisting of more urbanized The municipality, As the basic
composed of a and developed barangays, serves as a consisting of a political unit, the
cluster of general purpose government for the group of barangay serves
municipalities, or coordination and delivery of basic, barangays, serves as the primary
municipalities and regular, and direct services and effective primarily as a planning and
component cities, governance of the inhabitants within its general purpose implementing unit
and as a political territorial jurisdiction (§448) government for the of government
and corporate unit coordination and policies, plans,
of government, delivery of basic, programs,
serves as dynamic regular and direct projects, and
mechanism for services and activities in the
Role developmental effective community, and as
processes and governance of the a forum wherein
effective inhabitants within the collective
governance of its territorial views of the
local government jurisdiction (§440) people may be
units within its expressed,
territorial crystallized and
jurisdiction (§459) considered, and
where disputes
may be amicably
settled (§384)
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BASICS
PART 2:
GENERAL LOCAL
ADMINISTRATION
OF LOCAL GOVERNANCE
ComponentC
Province HUC Municipality Barangay
ity
average annual latest annual a locally average annual N/A
income, as income of at generated income, as
certified by the least Fifty average annual certified by the
Department of Million Pesos income, as provincial
Finance, of not (₱50,000,000.0 certified by the treasurer, of at
less than 0) based on Department of least Two million
Twenty million 1991 constant Finance, of at five hundred
pesos prices (§452[a]) least One thousand pesos
Requisites for (₱20,000,000.0 hundred million (₱2,500,000.00)
Creation: 0) based on pesos for the last two
Income 1991 constant (₱100,000,000. (2) consecutive
prices (§461[a]) 00) for the last years based on
two (2) the 1991
consecutive constant prices
years based on (§442)
2000 constant
prices (§450a
as amended by
RA 9009)
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BASICS
PART 2:
GENERAL LOCAL
ADMINISTRATION
OF LOCAL GOVERNANCE
Component
Province HUC Municipality Barangay
City
*250,000 200,000 150,000 25,000 (§442) 5,000 (in NCR
(§461[a][ii]) (§452[a]) (§450[a][ii]) and HUCs)
Requisites 2,000 (in
for Creation: other cities
Population and
municipalities
(§386)
Requisites *2,000km2 100km2 100km2 50 km2 n/a
for Creation: (§461[a][i]) (§450[a][i]) (§450[a][i]) (§442[a])
Land Area
By law (§460) By By law (§449) By law (§441) By law or by
Manner of presidential an ordinance
creation proclamation (§385)
(§453)
Total No.
80 33 105 1,491 42,028
(as of 9/30/2013)
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ICCs: 5
BASICS
PART 2:
GENERAL LOCAL
ADMINISTRATION
OF LOCAL GOVERNANCE
Provinces Cities Municipalities
₱360M or more but less ₱320M or more but less ₱45M or more but
Second
than ₱450M than ₱400M less than ₱55M
₱270M or more but less ₱240M or more but less ₱35M or more but
Third
than ₱360M than ₱320M less than ₱45M
₱180M or more but less ₱160M or more but not ₱25M or more but
Fourth
than ₱270M less than ₱240M less than ₱35M
₱90M or more but less ₱80M or more but not ₱15M or more but
Fifth
than ₱180M less than ₱160 less than₱25M
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INHERENT POWERS
PART 3:
POWERS, MANDATES, &
STRUCTURES
OF THE STATE
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MANDATES
PART 3:
POWERS, MANDATES, &
STRUCTURES
OF LOCAL GOVERNMENTS
q General Welfare Clause
² Shall ensure and support
o preservation and enrichment of culture
o promotion of health and safety
o enhancement of the right of the people to a balanced ecology
o development of appropriate and self-reliant scientific and technological
capabilities
o improvement of public morals
o economic prosperity and social justice
o promotion of full employment among residents
o maintenance of peace and order
o preservation of the comfort and convenience of inhabitants
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MANDATES
PART 3:
POWERS, MANDATES, &
STRUCTURES
OF LOCAL GOVERNMENTS
q The General Welfare Clause has 2 branches:
² The general legislative power, which authorizes municipal councils to enact ordinances
and make regulations not repugnant to law as may be necessary to carry into effect and
discharge the powers and duties conferred upon it by law
² The police power proper, which authorizes the municipality to enact ordinances as may
be proper and necessary for the health and safety, prosperity, morals, peace, good order,
comfort and convenience of the municipality and its inhabitants, and for the protection of
their property
q Examples of ordinances/acts under the General Welfare Clause:
² Ordinance prescribing the zonification and classification of merchandise and foodstuff
sold in the public market
² Proclamation reserving certain parcels of the public domain for street widening and
parking space purposes
² Condemnation and demolition of buildings found to be in a dangerous or ruinous
condition within the authority provided for by municipal ordinances
² Declaration of an area as a commercial zone through a municipal ordinance
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MANDATES
PART 3:
POWERS, MANDATES, &
STRUCTURES
OF LOCAL GOVERNMENTS
DA DENR DOH DPWH DSWD
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MANDATES
PART 3:
POWERS, MANDATES, &
STRUCTURES
OF LOCAL GOVERNMENTS
Function Province City Municipality Barangay
Agricultural extension and All the services and Extension and on-site Agricultural support
I insemination centers;
q Assistance in the organization
agriculture;
q establishment and maintenance
of farmer's and fishermen's of seed farms for palay, corn,
C cooperatives and other
collective organizations; and
and vegetables; medicinal plant
gardens; seedling nurseries for
fruit trees, coconuts, and other
U q Transfer of appropriate
technology trees or crops; and
demonstration farms;
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MANDATES
PART 3:
POWERS, MANDATES, &
STRUCTURES
OF LOCAL GOVERNMENTS
Function Province City Municipality Barangay
q enforcement of forestry All the services and q Integrated social Services and facilities
E laws limited to facilities of the forestry programs and related to general hygiene
community-based municipality and similar projects and sanitation,
N forestry projects province... q Management and beautification, and solid
q pollution control law control of communal waste collection
V q mall-scale mining law, forests with an area
q other laws on the not exceeding fifty
I protection of the (50) square
environment kilometers;
R q mini-hydroelectric q Establishment of tree
projects for local parks, greenbelts, and
O purposes similar forest
development projects
N q Solid waste disposal
system or
M environmental
management system
E and services or
facilities related to
N general hygiene and
sanitation
T
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MANDATES
PART 3:
POWERS, MANDATES, &
STRUCTURES
OF LOCAL GOVERNMENTS
Function Province City Municipality Barangay
Health services which All the services and q implementation of Health services which
include hospitals and facilities of the programs and include maintenance of
other tertiary health municipality and projects on primary barangay health center
H services province... health care, maternal
and child care, and
E communicable and
non-communicable
disease control
A services
q Access to secondary
L and tertiary health
services
T q Purchase of
medicines, medical
supplies, and
H equipment needed to
carry out the devolved
health services
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MANDATES
PART 3:
POWERS, MANDATES, &
STRUCTURES
OF LOCAL GOVERNMENTS
Function Province City Municipality Barangay
MANDATES
PART 3:
POWERS, MANDATES, &
STRUCTURES
OF LOCAL GOVERNMENTS
Function Province City Municipality Barangay
q Provincial buildings, All the services and q Municipal buildings, q Facilities such as
provincial jails, freedom facilities of the cultural centers, public multi-purpose hall,
P parks and other public municipality and parks including freedom multi-purpose
assembly areas, and province… parks, playgrounds, pavement, plaza,
U similar facilities and other sports sports center, and
q Programs and projects facilities and other similar facilities
B for low-cost housing equipment, and other q Satellite or public
and other mass similar facilities market, where viable
L dwellings q Sites for police and fire
q Inter-municipal stations and
I telecommunications substations and
services, subject to municipal jail
C national policy q Public markets,
guidelines slaughterhouses and
q Tourism development other municipal
and promotion enterprises
W programs q Public cemetery
q Tourism facilities and
O other tourist attractions,
including the acquisition
R of equipment,
regulation and
K supervision of business
concessions, and
S security services for
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such facilities
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MANDATES
PART 3:
POWERS, MANDATES, &
STRUCTURES
OF LOCAL GOVERNMENTS
Function Province City Municipality Barangay
S Social welfare services All the services and q Programs and projects maintenance of barangay
q programs and projects facilities of the for the welfare of the day-care center
O on rebel returnees and municipality and youth and children,
C evacuees province… family and community,
q relief operations women, the elderly, and
I q population development the disabled
A services q community-based
rehabilitation programs
L for vagrants, beggars,
street children,
W scavengers, juvenile
delinquents, and
E victims of drug abuse;
L q livelihood and other
pro-poor projects;
F q nutrition services;
A q family planning services
R
E
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MANDATES
PART 3:
POWERS, MANDATES, &
STRUCTURES
OF LOCAL GOVERNMENTS
Function Province City Municipality Barangay
O q Upgrading and All the services and Information services which q Information and reading
modernization of tax facilities of the include investments and centers
T information and municipality and job placement information q Administration and
H collection services province… systems, tax and maintenance of the
E through the use of marketing information Katarungang
computer hardware and systems, and Pambarangay
R software and other maintenance of a public
means library
S q Investment support
services, including
E access to credit
R financing
V q Industrial research and
development services,
I as well as the transfer
C of appropriate
E technology
S
§17(b)(3) §17(b)(4) §17(b)(2) §17(b)(1)
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PART 3:
ORGANIZATIONAL STRUCTURE
POWERS, MANDATES, &
STRUCTURES
Sanggunian LCE
TYPICAL ORGANIZATIONAL
PART 3:
POWERS, MANDATES, &
STRUCTURESS
STRUCTURE: PROVINCE
Sanggunian Panlalawigan GOVERNOR
TYPICAL ORGANIZATIONAL
PART 3:
POWERS, MANDATES, &
STRUCTURES
STRUCTURE: CITY
Sangguniang Panlungsod MAYOR
TYPICAL ORGANIZATIONAL
Planning and Development Coordinator (§484, O) PART 3:
(§476, M) Architect (§485, O) POWERS, MANDATES, &
STRUCTURES
STRUCTURE: MUNICIPALITY
Engineer (§477, M) Information Officer (§486, O)
Health Officer (§478, M) Cooperatives Officer (§487, O)
Civil Registrar (§479, M) Population Officer (§488, O)
Administrator (§480,Bayan
Sangguniang Mpc/Om) Veterinarian
MAYOR
(§489, Mpc)
General Services Officer (§490, Mpc)
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ORGANIZATIONAL STRUCTURE
PART 3:
POWERS, MANDATES, &
STRUCTURES
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PART 3:
ORGANIZATIONAL STRUCTURE POWERS, MANDATES, &
STRUCTURES
AND STAFFING PATTERN
q LGUs may create optional positions provided all mandatory
positions were created in accordance with budgetary
limitations
q Tenure of Administrator, Information Officer, and Legal
Officer shall be co-terminus with LCE
q Heads of departments and offices shall be appointed by the
LCE subject to civil service law, rules and regulations
q Qualification requirements provided in the Code shall be
applied; no substitution for deficiency in education and/or
experience shall be allowed
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PART 3:
ORGANIZATIONAL STRUCTURE POWERS, MANDATES, &
STRUCTURES
AND STAFFING PATTERN
q Limitations on Appointments
² No person shall be appointed in the career service
of the local government unit if he/she is related
within the 4th civil degree of consanguinity or
affinity to the appointing or recommending
authority
² Post notices of vacancy in at least 3 conspicuous
public places in the LGU concerned for a period of
not less than 15 days
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PART 3:
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PART 3:
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PART 3:
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PART 4:
LOCAL FISCAL
LOCAL FISCAL ADMINISTRATION ADMINISTRATION
q conduct and
management of
financial affairs,
transactions, and
operations of LGUs
(§304)
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PART 4:
LOCAL FISCAL
LOCAL FISCAL ADMINISTRATION ADMINISTRATION
Revenue
Allocation • Synchronized planning and budgeting system and processes
and • Accounting and auditing of expenditures
Utilization
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PART 4:
KEY PLAYERS LOCAL FISCAL
ADMINISTRATION
IN LOCAL FISCAL ADMINISTRATION
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PART 4:
LOCAL FISCAL
REVENUE GENERATION AND MOBILIZATION ADMINISTRATION
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PART 4:
LOCAL FISCAL
REVENUE GENERATION AND MOBILIZATION ADMINISTRATION
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REVENUE GENERATION
PART 4:
LOCAL FISCAL
ADMINISTRATION
AND MOBILIZATION
Community Tax)
Local Sources
License Fees
External Sources Regulatory Fees
Non-Tax
Permit Fees
Loans and Revenues Business & Other
Borrowings Income
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REVENUE GENERATION
PART 4:
LOCAL FISCAL
ADMINISTRATION
AND MOBILIZATION
Internal Revenue
Allotment
REVENUE GENERATION
PART 4:
LOCAL FISCAL
ADMINISTRATION
AND MOBILIZATION
LGU Income
Local Sources
Loans from Private
Banks
External Sources
Loans from GFIs
Loans and Borrowings
Cost-Sharing Scheme
Receipts from
Government Agencies
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REVENUE GENERATION
PART 4:
LOCAL FISCAL
ADMINISTRATION
AND MOBILIZATION
q Authority to Negotiate and Secure Grants
² Local chief executives may, upon authority of the Sanggunian, negotiate and
secure financial grants or donations in kind, in support of the basic services or
facilities from local and foreign assistance agencies without necessity of
securing clearance or approval therefor from any department, agency, or
office of the national government or from any higher local government
unit:
² EXCEPT: Projects financed by such grants or assistance with national
security implications shall be approved by the national agency concerned:
Provided,,That when such national agency fails to act on the request for
approval within thirty (30) days from receipt thereof, the same shall be deemed
approved
² The local chief executive shall, within thirty (30) days upon signing of such
grant agreement or deed of donation, report the nature, amount, and terms of
such assistance to both Houses of Congress and the President (§23)
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PART 4:
q If the RPT tax payment is up to date, the taxpayer gets a 10% discount
q Basis for assessment of real property: actual use
q The appraisal and assessment is based on the current and fair market
value of the property prevailing in the locality
² FMV: is the price at which a property may be sold by a seller who is not
compelled to sell and bought by a buyer who is not compelled to buy
q The computation of RPT is based on the assessed value of the property
² Assessed value: is the fair market value multiplied by the assessment level;
synonymous to taxable value
² Assessment level: the percentage applied to the fair market value to
determine the taxable value of the property
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PART 4:
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PART 4:
q Illustration:
² Lot 21, a real property located in Province Y has an assessed value of PhP10,000. Compute the
basic RPT, the SEF, and the total annual real tax due
² Basic RPT: PhP10,000 x 1% = 100
² SEF: PhP10,000 x 1% = 100
² Total annual due: PhP 2000
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PART 4:
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PART 4:
FISCAL ADMINISTRATION LOCAL FISCAL
ADMINISTRATION
SOURCES OF REVENUE: Focus on IRA
q Local government units shall have a just share, as determined by law, in the national taxes which
shall be automatically released to them (Art. X, Sec. 6, CONST.)
q IRA shall be automatically and directly released to them without need of any further action (Sec. 18,
LGC)
² in the event that the national government incurs an unmanageable public sector deficit, the President of the
Philippines is hereby authorized, upon the recommendation of Secretary of Finance, Secretary of Interior and
Local Government and Secretary of Budget and Management, and subject to consultation with the presiding
officers of both Houses of Congress and the presidents of the liga, to make the necessary adjustments in
the internal revenue allotment of local government units but in no case shall the allotment be less than
thirty percent (30%) (Sec. 284, LGC)
² The share of each local government unit shall be released, without need of any further action, directly to
the provincial, city, municipal or barangay treasurer, as the case may be, on a quarterly basis within five (5)
days after the end of each quarter, and which shall not be subject to any lien or holdback that may be
imposed by the national government for whatever purpose (Sec. 286[a], LGC)
q IRA plays an important role in local autonomy
² LGUs receive the IRA as a means to help defray the costs of their new responsibilities under the Code
q LGUs receive a yearly share of 40% of the national internal revenue taxes collected three years
earlier (“3-year lag”) (See Section 284 of the LGC)
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FISCAL ADMINISTRATION
SOURCES OF REVENUE: Focus on IRA
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REVENUE POTENTIAL
Indicator Formula Definition Benchmark Concerns Addressed
Revenue Level Total Revenues Total revenues as LGU Revenue ≥ income Also a creditworthiness
compared to the class average ranking indicator. Used as
average value for evidence for the availability
the LGU income of an appropriate revenue
class to which level.
the LGU belongs
Revenue Growth (TRyr1 –TR yr0 ) Revenue growth The average annual % Also a creditworthiness
---------------------x100
or the trend in increase in LGU revenues ranking indicator. Used as
TRYr0
revenue across ≥ Annual inflation rate1 + evidence for the sustainability
Where: time Annual population of an appropriate revenue
TR = total revenues growth rate2 level.
1Annual inflation rate – Calculated as the average annual increase in the Gross Regional Domestic Product (GRDP) Implicit Price Index
(1985=100) for the region to which the LGU belongs as published by theNational Statistical Coordination Board (NSCB).
2Annual population growth rate – Annual compound growth rate of the LGU population calculated from the formula Pn=Po(1+r)t where
Pt=population at year n. Po=base year population, 1=number of years elapsed between the base year and year n, and r is the annual growth
rate. The appropriate population levels may be taken from the National Statistical Office (NSO).
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Locally- Locally Sourced Revenue1 Amount of revenues Per capita locally sourced > This is used as
Sourced ----------------------------------- under LGU control average for the LGU income evidence of the
Revenue (LSR) Population on a per capita to which the LGU belongs degree of tax effort
per Capita basis exerted by the LGU.
Growth in (LSR per capitaYr1 - Growth in the Growth in locally Used as evidence of the degree
Locally LSR per capitaYr 0) amount of revenues sourced revenues of improvement of the
Sourced -----------------------------x100 under LGU control per capita > average tax effort exerted by the LGU.
Revenue LSR per capitaYr0 on a per capita for the LGU income
per Capita basis. to which the LGU
belongs
% Locally LSR The share of % share of locally sourced Used as evidence of reliability of
Sourced to ------------------------------x100 revenues that revenue to total LGU revenue an appropriate revenue level
Total LGU Total Revenues are under LGU > average share for the LGU
Revenue control and income class to which the
results from LGU belongs
local economic
activity.
% Regular Regular Revenues % Regular The share of total LGU Used as evidence of
Revenues2 to --------------------------x 100 Revenues to Total revenue > average share for predictability of an appropriate
Total Revenue Total Revenues Revenue recurring revenue to the LGU revenue level
income class to which the
LGU belongs
1Locally sourced revenues include income from business and other local taxes, real property taxes, economic enterprises, fees and charges. This does not
include IRA, LGU share in national wealth, loans, credits, bond proceeds, tobacco excise taxes, etc.
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2Regular Revenues = Total LSR + IRA
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Total RPT RPT The cost of RPTCC > average for the LGU This reflects the cost effectiveness
Collection Cost to Collection Cost collecting a peso of income class to which the LGU of the local revenue generation
Total RPT -------------------x100 RPT belongs efforts of LGU. The cost of
Total RPT Collected collecting RPT can be considered
highly indicative of the cost
effectiveness of the local revenue
efforts of an LGU
Total Revenue All Other Revenues The cost of TRCC > average for the LGU This reflects the cost
Collection Cost to Collection Cost collecting a peso of income class to which the LGU effectiveness of the local revenue
Total Revenues -------------------x100 revenues. belongs generation efforts of an LGU. The
Collected (TRCC) Total All Other cost of collecting
Revenues taxes can be considered highly
indicative of the cost effectiveness
of the local revenue efforts of a
LGU.
Real Property Actual RPT % of current RPT RPTAR > 100% Also a creditworthiness
Tax Collection collected within the ranking indicator and is used as
Accomplishment -------------------x100 year to the total RPT evidence of the collection
Rate (RPTAR) Targeted RPT due for efficiency of the LGU.
Collections the year as
estimated
from the assessed
value of taxable real
properties
©2016 MAMGamboa
Total Expenditures Total Expenditures Average Per capita total LGU expenditure ≥ This is indicative of the amount
per Capita ------------------------- amount spent average for the income class to of services extended by the
Population by the LGU per which the LGU belongs LGU to its constituent as a per
constituent. capita basis
Personnel Services Personnel The ratio of LGU PSER < 45% for 1st to 3rd class Also creditworthiness ranking
Expenditure Ratio Services expenditures for LGUs and 55% to 4th or lower indicator; regarded as the most
(PSER) Expenditures personal services to class LGUs and should exhibit a rigid expenditure category for
--------------------x100 total expenditures decreasing trend an LGU
Total
Expenditures Note: These are legal ceilings
imposed under §325(a), LGC
Debt Service Debt Service The ratio of LGU DSER < average for the LGU Debt service is regarded as an
Expenditure Ratio Payments Expenditures for debt income class to which the LGU equally rigid expenditure
(DSER) --------------------x100 service to total LGU belongs and should be decreasing category for an LGU. Also a
Total expenditures, recommended creditworthiness
Expenditure ranking indicator.
Where:
Debt Service =
Interest + Loan
Amortization
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EXPENDITURE INDICATORS
Indicator Formula Definition Benchmark Concerns Addressed
Social Social Services The ratio of SER > average for the The level of LGU social
Expenditure Expenditure LGU social LGU income class to expenditures has a high
Ratio (SER) ------------- x100 expenditures to which the LGU belongs degree of relationship with
Total total LGU and should be poverty alleviation and
Expenditures Expenditures increasing improvement in the human
development index
Economic Economic The ratio of EER > average for the The level of LGU economic
Expenditure Services LGU economic LGU income class to expenditures also has a
Ratio (EER) Expenditure expenditures to which the LGU belongs high degree of relationship
------------- x100 total and should be with poverty alleviation and
Total expenditures increasing improvement in the human
Expenditures development index
©2016 MAMGamboa
Debt Service Debt Service The ratio of LGU DSR < 20% of The debt service cap is a statutory
Ratio (DSR) Payments expenditures for income and ratio limitation imposed under §324, LGC. Also
----------------- x100 debt service to total annual regular a recommended creditworthiness ranking
Regular LGU annual regular should at least be indicator. This indicator defines the extent
Revenues income stable if not to which a local government could engage
decreasing across additional debt, taking into account the
time debt limits provided by the law. These
limits give decision autonomy to the local
government as long as the expenditures
related with the debt service remain within
the prudent acceptable limits.
Gross Operating Gross Operating The ratio of LGU GOSDSR > average The gross operating result represents the
Surplus to Debt Surplus (Deficit) operating surplus to for the LGU income main and essential source that could be
Service Ratio ---------------------- debt service, class to which the mobilized by the LGU in order to finance
(GOSDSR) Debt Service LGU belongs and the public service infrastructure
Payments Where: should be increasing investments or the servicing of loans
contracted for these purposes. This is also
Operating a creditworthiness ranking indicator.
Surplus = Operating
Revenues-
Operating
Expenditures
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©2016 MAMGamboa
Net Operating Net Operating The ratio of LGU net NOSTRR > average for This indicator shows the ability of the
Surplus to Total Surplus operating surplus to total the LGU income class to local governments to be sure their
LGU Revenue (Deficit)*100/ LGU revenues which the LGU belongs budget will be balanced. The
Ratio (NOSTRR) Total Revenues and should be NOSTRR is also a recommended
increasing on case of creditworthiness ranking indicator.
where: operating surplus and
Net Operating decreasing in case of
Surplus = Gross operating deficit
Operating
Revenues –
Debt Service
Uncommitted Uncommitted The calculated figure reflects UCBTER > average for Few LGUs explicitly provide
Cash Balance to Cash the uncommitted cash the LGU income class to for financial reserve, and the
Total LGU Balance portion of government equity which the LGU belongs nearest equivalent will be the
Expenditure ----------------x100 in the LGAS. This is roughly and should be uncommitted or free cash balance of
Ratio (UCBTER) Total equivalent to a sort of an increasing LGUs. This indicator shows the ability
Expenditures annual financial reserve. of the LGU to ensure their budget will
be balanced even in the face of
where: financial uncertainties. Also a
Uncommitted creditworthiness ranking indicator.
Cash Balance =
Total Ending
Cash Balance-
Financial
Commitments ©2016 MAMGamboa
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PART 5: LOCAL
LEGISLATION/POLICY-MAKING
PART 5: LOCAL
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PART 5: LOCAL
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RELATIONS
q National Supervision over Local Government Units
² Consistent with the basic policy on local autonomy, the
President shall exercise general supervision over local
government units to ensure that their acts are within the
scope of their prescribed powers and functions.
² The President shall exercise supervisory authority directly
over provinces, highly urbanized cities, and independent
component cities; through the province with respect to
component cities and municipalities; and through the city
and municipality with respect to Barangays
©2016 MAMGamboa
RELATIONS
q National Supervision over Local Government Units
² National agencies and offices with project implementation functions
shall coordinate with one another and with the LGUs concerned in the
discharge of these functions. They shall ensure the participation of
LGUs both in the planning and implementation of said national projects
² The President may, upon request of the LGU concerned, direct the
appropriate national agency to provide financial, technical, or other
forms of assistance to the local government unit. Such assistance shall
be extended at no extra cost to the LGU concerned
² National agencies and offices including GOCCs with field units or
branches in a province, city, or municipality shall furnish the LCE
concerned, for his information and guidance, monthly reports including
duly certified budgetary allocations and expenditures (§25)
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RELATIONS
q Provincial Relations with Component Cities and Municipalities
² The province, through the governor, shall ensure that every component
city and municipality within its territorial jurisdiction acts within the
scope of its prescribed powers and functions. Highly urbanized cities
and independent component cities shall be independent of the
province (§29)
q City and Municipal Supervision over Their Respective
Barangays
² The city or municipality, through the city or municipal Mayor concerned,
shall exercise general supervision over component Barangays to
ensure that said Barangays act within the scope of their prescribed
powers and functions (§32)
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RELATIONS
q Cooperative Undertakings Among Local Government
Units
² Local government units may, through appropriate ordinances,
group themselves, consolidate, or coordinate their efforts,
services, and resources for purposes commonly beneficial to
them. In support of such undertakings, the local government
units involved may, upon approval by the Sanggunian concerned
after a public hearing conducted for the purpose, contribute
funds, real estate, equipment, and other kinds of property and
appoint or assign personnel under such terms and conditions as
may be agreed upon by the participating local units through
Memoranda of Agreement (§33)
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RELATIONS
q Inter-Local Government Loans, Grants, and
Subsidies
² Provinces, Cities and Municipalities may, upon approval of
the majority of all members of the Sanggunian concerned
and in amounts not exceeding their surplus funds, extend
loans, grants, or subsidies to other local government units
under such terms and conditions as may be agreed upon
by the contracting parties.
² Local government units may, upon approval of their
respective Sanggunian, jointly or severally contract loans,
credits, and other forms of indebtedness for purposes
mutually beneficial to them. (§300)
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CSOs
q Promote the establishment and operation of POs and
NGOs to become active partners in the pursuit of local
autonomy (§34)
q Link with POs and NGOs through joint venture
agreements and other cooperative arrangements (§35)
q Assist in terms of financial support and other means to
POs and NGOs for economic, socially-oriented,
environmental, or cultural projects to be implemented
within the LGU’s territorial jurisdiction (§36)
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CSOs
CSOs
CIVIC • any local service club, fraternal society or association, volunteer group, or
local civic league or association not organized for profit but operated
GROUP discipline, for the advancement of the profession itself and for other
professional ends
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CSOs
©2016 MAMGamboa
IN THE SANGGUNIAN
URBAN POOR
IPS/ICCS/
DISABLED
WOMEN WORKERS
PERSONS/OR
ANY OTHER
SECTOR
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Part 1:
RECAPITULATION PRELIMINARIES
Powers, Local
Mandates Fiscal
& Structure Administration
INSTITUTIONAL
SECTOR
Local
Legislation/Policy- Networks
Making & Relations
©2016 MAMGamboa
Teaching is more than imparting knowledge, it is inspiring change. Learning is more than absorbing facts, it is acquiring understanding
- William Arthur Ward
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be
reproduced or used in any form or by any means- graphic, electronic, or mechanical,
including photocopying, recording, taping, Web distribution, information storage and
retrieval systems, or in any other manner- without the written permission of the author.
©2016 MAMGamboa 56