1. Philippine Development Forum Working Group on Decentralization and Local Government PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT

2. PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT Accomplishments on the Work Plan Development Agenda 1 Improving Fiscal Autonomy for Local Development

3. PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT Outcome: More efficient local fiscal policies and procedure Project / ActivityActual Outputs/ DeliverablesProponent/ Responsible Agencies Period of Implementation & Next Activities Enhancement of the e-SRE System to include the following modules 1. Enhanced e-SRE system with modules on fiscal capacity modelling and forecasting; financing modalities; debt management and creditworthiness and debt certification; DOF-BLGF (ADB TA 7451) 2010 – On-going Next Activities: Conduct of training of trainers (TOT) for Central BLGF Staff on August 06-10, 2012, and Roll-out for deployment to LGUs will be conducted after the ToT. 2. Field testing of the e-SRE system accomplished, and 3. First exposure workshop conducted on November and December 2011. Electronic System (e-system) for Financial Transactions Systems development for financial transactions, including budgeting and expenditure management [linking- up revenue (SRE) and budget] DOF-BLGF / DBM / COA (EU) Included in the upcoming EU Public Financial Management (PFM) program to be rolled out on the 3 rd Quarter of 2012

4. PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT Outcome: Increased Own Source Revenues Project / ActivityActual Outputs/ DeliverablesProponent/ Responsible Agencies Period of Implementation & Next Activities Development of Local Business Taxpayer Database 1.1 Completed a study on local business taxpayer under TA 7451; DOF-BLGF (ADB-TA 7451) 2010 – On-going Next Activity: Conduct of training of trainers (TOT) for Central BLGF Staff on July 2012. 1.2 Designed a prototype program for local taxpayer database, and 1.3 Field Testing conducted last April 11, 2012 in Dagupan City. Use of Presumptive Gross Sales Figures to Calculate Business Tax Liability 2.1 Developed information materials on guidelines and methods for presumptive income tax to calculate business tax liability, and DOF-BLGF (ADB-TA 7451) 2010 – On-going Next Activity: Conduct of training of trainers (TOT) for Central BLGF Staff on July 2012. 2.2 Field testing of the guidelines conducted by the consultant last April 11, 2012 in Dagupan City. Rationalization of Fiscal Incentives DOF-BLGFNot Started /Needing donor support

5. PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT Outcome: Increased Own Source Revenues Project / ActivityActual Outputs/ DeliverablesProponent/ Responsible Agencies Period of Implementation & Next Activities 4. Facilitate LGU compliance on Updating of SMV and Collection of Idle Land Tax (Implementing the JMC Nos. 2010-001 and 2010-002) 4.1 Website on both JMC Nos. 2010-001 and 2010-002 completed and available at www.jmc.blgf.gov.ph;www.jmc.blgf.gov.ph DOF-BLGF / DILG On-going Next Activities: Develop and issue a procedural guideline on idle land tax imposition, inventory, implementation and collection, through a DOF Joint Assessment and Treasury Regulations by 2 nd – 3 rd Quarter of 2012. 4.2 Brochures distributed in all BLGF regional offices and during the PHALTRA convention; 4.3 Continuous public and media relations initiatives (e.g., Radio Forum @ DZRH 666 “Batas Barangay” conducted on 04 February 2012), and 4.4 Continuous monitoring of compliance started in April 2011. a. JMC 2010-01: Consolidated reports on status of SMV revision and submission of approved SMVs and ordinance completed in March 2012, and b. JMC 2010-02: Consolidated reports on Idle Lands inventory @ 9% compliance rate.

6. PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT Outcome: Improved Access of LGUs to financing Project / ActivityActual Outputs/ DeliverablesProponent/ Responsible Agencies Period of Implementation & Next Activities 1. Options for LGU enhancement fund 1.1 Proposal on distributing an increased share of the IRA (from current 40% of national internal revenues to possibly 50%) under the LGU Enhancement Fund was finalized and submitted to the Office of the President and Congress, DILG and ADBDone/Completed 1.2 Proposal was presented as part of the Local Government Code (LGC) Celebration last October 14, 2011. 2. MDFO computerization of administrative and operational functions 2.1 Designed programming and computerization system to improve and automate the fund management and loan application functions of MDFO done under ADB 7451. MDFO (ADB TA 7451) Done under ADB TA 7451, the formal turn- over of the system and the study will be completed on 15 July 2012 3. MDFO capacity building on fund management 3.1 Streamlined MDFO fund management process and capacity building.

7. PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT Outcome: Improved Access of LGUs to financing Project / ActivityActual Outputs/ DeliverablesProponent/ Responsible Agencies Period of Implementation & Next Activities 4. Technical Advisory services to MDFO 4.1 Provided technical advisory services to MDFO for policy formulation and review of: Policy syndication of LGU loans with private financial institutions Revised interest rate policy Policy for addressing delinquent LGUs MDFO (ADB TA 7451) Done under ADB TA 7451, the formal turn- over of the system and the study will be completed on 15 July 2012 5. Streamlining MDFO processes for disbursement 5.1 Designed a streamlined process for disbursing MDFO loan funds. 6. Strengthening LGU project development capacity 6.1 Design and develop an operational framework and mechanism for LGUs to access technical and financial support for project development, through an umbrella Project Development Fund for LGUs DILG-OPDSFor Dropping

8. PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT Outcome: More efficient allocation of expenditures Project / ActivityActual Outputs/ DeliverablesProponent/ Responsible Agencies Period of Implementation & Next Activities 1. Improving LGU Utilization of funds 1.1 Joint Circular was issued by DBM and DILG on the utilization of 20% component of the IRA last April 2011, and DILG BLGD / DBM / Leagues (ADB TA 7451) On-going All final reports will be out on August 2012 Next Activities: DBM to draft a policy on local government transfer and subsidy to local government, and DBM to come up with a complete guideline on local economic enterprises. 1.2 Policy on the utilization of Special Education Fund (SEF) developed; some provisions to be agreed by DBM and DepEd;

9. PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT Outcome: Improved Revenue Management Capacity Project / ActivityActual Outputs/ DeliverablesProponent/ Responsible Agencies Period of Implementation & Next Activities 1. Competency Certification System (CCS) for Treasurers 1.1 Study completed and consultations conducted on the formulation of guidelines for the implementation of CCS, and DOF-BLGF (ADB-TA 7451) Done/ Completed Next Activity: Conduct of phased- implementation of the guidelines on 2012 by starting on the implementation of “Performance Standard” before going into full Competency Certification and System Implementation. 1.2 Guidelines developed on the implementation of CCS. 2. Improving Capacity of Treasurers and Assessors on Revenue Generation & Management 2.1 Mass Appraisal Guidebook (MAG) published and distributed to all LGUs – 1,700 (Assessors’ Office); DOF/BLGF and World Bank On-going Next Activities: Roll-out the Basic Course on Mass Appraisal to 50% of provinces and cities in 2012, and Local Treasurers Operations Manual (LTOM)will also be rolled-out on 2012. 2.2 Development of Basic Course on Mass Appraisal (BCMA) and conduct of Refresher Course for the National Trainers on BCMA completed, and 2.3 First training on BCMA conducted for NCR in the last quarter of 2011.

10. PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT Outcome: Improved Revenue Management Capacity Project / ActivityActual Outputs/ DeliverablesProponent/ Responsible Agencies Period of Implementation & Next Activities 3. Capacitating Priority LGUs on SMV Revision 3.1 LAMP2-BLGF is presently supporting TA requirements of ADB TA 43205-01 for five LGUs (Tayabas, Alaminos, Legazpi, Bayawan and San Carlos) a. BCMA Training conducted last 27-30 March 2012, and b. Valuation Database Information System (VDIS) Training conducted last 2-3 AprIl 2012 DOF-BLGF/ DILG and World Bank/ADB On-going Next Activities: Roll-out of BCMA to commence on 2Q or 3Q of 2012 through the National Trainers on BCMA and Regional Associations of Assessors, and Deployment of VDIS and eFAAS to other priority LGUs by 2Q of 2012. 4. Mainstreaming of LAMP technologies