Department of Finance BUREAU OF LOCAL GOVERNMENT FINANCE LGU PFM2 PROGRESS REPORT May 2013 To June 2015 SUPPORT TO THE LOCAL GOVERNMENT UNITS FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT) This project is funded by the European Union and implemented by the Government of the Philippines

What has been accomplished to date? ACTIVITIES OPE1/OPE2 SPECIFIC ACCOMPLISHMENT ACTUAL DATE COMPLETED TARGET DATE OF COMPLETION Enhance LGFMS & Manuals on LGFPMS & SRE Regional Analysis Technical Editing Completed December 2013 May 2016 Enhance LGU Income Re-classification System Consultation Workshop with stakeholders conducted Draft bill has been presented to the DOF Draft bill has been filed to the Senate under Senate Bill No. 2664 8 November 2013 September 2014 23 February 2015 June 2016

SPECIFIC ACCOMPLISHMENT TARGET DATE OF COMPLETION What has been accomplished to date? ACTIVITIES OPE1/OPE2 SPECIFIC ACCOMPLISHMENT ACTUAL DATE COMPLETED TARGET DATE OF COMPLETION Con’t. Draft bill has been filed to the House under House Bill No. 5656 8 April 2015 June 2016 Updated Local Treasury Operations Manual (LTOM) On-going review of the LTOM by the NKE LTOM Review by the BLGF TWG Series of Meetings to review the LTOM by the BLGF-LTOM-TWG Meeting to Review the LTOM April-June 2014 22-24 Oct 2014 27-29 May 2015 22-26June 2015 June 2016

TARGET DATE OF COMPLETION What has been accomplished to date? ACTIVITIES OPE1/OPE2 SPECIFIC ACCOMPLISHMENT ACTUAL DATE COMPLETED TARGET DATE OF COMPLETION Enhance Manual on Evaluation of Local Treasury Operations of LGUs (MELTO) Consensus building workshop Writeshop of the MELTO Briefing on the Operational Policies and the Adoption of the MELTO Finalization of the MELTO Training Of Trainors on the use of the MELTO Seminar Workshop on the Use of MELTO: Prov’l. Treas. & 1 staff – Regions 7,8,9 & 10 Regions 11,12 & CARAGA Regions 1,2,3 & CAR Regions 4a,4b,5 & 6 April 2014 August 2014 4-6 December 2014 11-12 May 2015 3-5 June 2015 8-10 June 2015 10-12 June 2015 15-17 June 2015 17-19 June 2015 October 2015 The funding for MELTO is from OPE2.

SPECIFIC ACCOMPLISHMENT TARGET DATE OF COMPLETION What has been accomplished to date? ACTIVITIES OPE1/OPE2 SPECIFIC ACCOMPLISHMENT ACTUAL DATE COMPLETED TARGET DATE OF COMPLETION Revise Assessment Examination/ Evaluation and Monitoring Manual (AEEMMM) for Non-Computerized LGUs Consensus building workshop Revise Manual Drafted On-going review of the AEEMM Consultation workshop on the AEEMM for non-computerized LGUs for finalization Pilot testing of the AEEMM (non-computerized LGUs) nationwide thru BLGF Regional Offices February 2014 June 2014 July 2014 25-28 November 2014 Continuing October 2015

What has been accomplished to date? ACTIVITIES OPE1/OPE2 SPECIFIC ACCOMPLISHMENT ACTUAL DATE COMPLETED TARGET DATE OF COMPLETION Develop AEEMM for computerized LGUs Presentation of initial outputs by the NKE Consultation workshop on the AEEMM for computerized LGUs Pilot testing of AEEMM in Pasay City and Agusan del Sur Province July 2014 25-28 November 2014 9-13 February 2015 & 23-27 February 2015 October 2015

What has been accomplished to date? ACTIVITIES OPE1/OPE2 SPECIFIC ACCOMPLISHMENT ACTUAL DATE COMPLETED TARGET DATE OF COMPLETION Develop Public Financial Management (PFM) Manuals Detailed Review of four (4) PFM Manuals Finalized three (3) PFMs ready for printing 20-21 October 2014 June 2015 ACTIVITIES OPE1/OPE2 SPECIFIC ACCOMPLISHMENT ACTUAL DATE COMPLETED TARGET DATE OF COMPLETION Enhance e-SRE System Pilot Testing Training of Trainors conducted 11 Clusters training completed covering 224 provinces and cities Consultative meeting with the BLGF mgmt. re revision of SRE Manual. June 2013 July 2013 July 2013 – April 2014 January 2014 June 2015 The PFM Manuals are as follows: 1. A Manual on Determining Local Government Fiscal Capacity 2. Guide on Financing Modalities for Local Government Units 3. Guidebook for the New Local Government Financial Performance Monitoring System 4. Debt Management However, the Debt Management Manual is merged/combined with the Financing Modalities, hence the 4 manuals became 3 manuals.

What has been accomplished to date? ACTIVITIES OPE1/OPE2 SPECIFIC ACCOMPLISHMENT ACTUAL DATE COMPLETED TARGET DATE OF COMPLETION ACTIVITIES OPE1/OPE2 SPECIFIC ACCOMPLISHMENT ACTUAL DATE COMPLETED TARGET DATE OF COMPLETION Cont. Of Enhance e-SRE System Training Workshop on eSRE Technical Training Plan for BLGF Technical Resources Expert Panel Review of the Draft SRE Manual Review and finalize the updated SRE Manual Pilot testing of Revenue and Cash Flow Forecasting Template Issuance of Department Order No. 059-2015 dated May 28, 2015 27-28 Feb. 2014 20-23 June, 2014 16 February 2015 27-28 April 2015 28 May 2015 June 2015 The Training Workshop on eSRE Technical Training Plan for BLGF Technical Resources is actually the troubleshooting of the eSRE system. Activities of eSRE have been completed under OPE2 (July 2014 to June 2015), except for Financial Monitoring System which will be conducted under OPE3. Financial Monitoring System is the enhancement of Central System of the eSRE to include the modules of __________ Department Order No. 059-2015 dated May 28, 2015 is the electronic submission of QRRPA.

What has been accomplished to date? ACTIVITIES OPE1/OPE2 SPECIFIC ACCOMPLISHMENT ACTUAL DATE COMPLETED TARGET DATE OF COMPLETION eSRE Based Treasurer’s Performance Rating Consultative workshop with stakeholders Draft Performance Standards exposed to the Regional Directors for further enhancement Simulation workshop of Performance standards to BLGF Regional Staff Roll out of the Performance Standards to the Province/City Treasurers of Visayas and Mindanao areas Roll out of the Performance Standards to the Province/City Treasurers of NCR and Luzon areas Issuance of Department Order No. 006-2015 dated 20 January 2015 November 2013 February 2014 May 2014 June 2014 August 2014 20 January 2015 June 2016

What has been accomplished to date? ACTIVITIES OPE1/OPE2 SPECIFIC ACCOMPLISHMENT ACTUAL DATE COMPLETED TARGET DATE OF COMPLETION Conduct PFM Competency Analysis for DOF & BLGF Policy Units Attended workshop on the capacity development programs Attended series of workshops on Foundation Courses Scheduled in 2015 August 2014 October- December 2014 May 2016 Interrelated Activities: LGU Policy Agenda and Action Plan (LGU PFM Roadmap Attended Consultation Workshops April 2014

What are the remaining project activities in the pipeline? OPE3 (July 2015 to June 2016) TARGET DATE OF COMPLETION Examination of local treasurers Enhancement of Resource Mobilization Manual Financial Monitoring System June 2016

Other BLGF Project Engagement BLGF-Local Government Revenue Generation and Land Administration Reforms Project (REGALA) Accomplishment

Major Activities and Outputs REGALA Project Proposed Outputs Activities 1 Upscaling of parcel based land information initiatives in mature LGUs & adoption by new LGUs - Capability development on GIS -Database build-up & maintenance 2 Revised SMVs adopted, implemented, general revision (GR) conducted Updating of property valuation & practices Developing spatial databases & integrated revenue systems Training of BLGF & ROs on valuation methods & practices 3 Revised CLUPs/CDPs, DRRM /CCA Plans, Draft Terms of Reference for the Master Plan on Preferred Urban Forms; - Capacity building on land use planning Training on DRRM/CCA Planning Training on Master Planning for Preferred Urban Forms 4 Land tenure improvement Land tenure profiling Capacity building on land titling and registration processes Technical assistance on a One Stop Shop facility

BLGF-REGALA Major Accomplishment Operationalized spatial land information systems in all project LGUs Operationalized integrated revenue systems in all project LGUs 5 LGUs serve as benchmarks for roll-out of valuation reforms 4 mature LGUs with updated SMVs approved by their Local Councils 4 mature LGUs with revised CLUP/CDP approved by their Local Councils

BLGF-REGALA Project Accomplishments Ongoing development of DRRM/CCA plans Ongoing preparation of the TOR for Master Plan of Preferred Urban Forms Ongoing land tenure improvement

Initial Outcomes: Improved in-house capacity to periodically revise their SMVs Greater confidence of LGU in performance of work Reduced transaction time for Business Permits/Fees and Real Property Taxes Improved efficiency in BLP tax collection Increased local revenues generated even without increasing tax rates Example”: San Carlos City is currently implementing the revised tax regine. Figures from the Treasurer’s Office in May 2015 showed that a total of 13,131 RPUs as against only 9,650 in 2014 or a 36% increase in number of RPUs. The same office also reported a total of PhP 23,382,323.68 2015 in gross RPT collections as of May 2015 versus PhP 15,754,390.32 last May 2014 or a 48.4% increase in gross RPT collections as compared to their expected 30% increase. The 2014 Total Assessed Value real property was placed at PhP 2,615,338,830 as compared to the Total Assessed Value in 2015 of PhP 3,546,453,487 or a 35.6% increase in total assessed value. A total of RPT Collectible of PhP 70,929,069.74 is expected for 2015.

Initial Outcomes: Improved local capacity for comprehensive land management and planning Improved local capacity for DRRM/CCA planning Increased LGU risk preparedness Production of risk /vulnerability maps Improved capacity for land tenure improvement

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