OFFICES RESPONSIBLE

FOR LOCAL FISCAL

ADMINISTRATION

Local Chief Executives Office

Treasurers Office
Assessors Office
Budget Office
Accounting Office
Planning and Development
Office
The Sanggunian

The Fiscal Responsibility is

shared by all those
exercisingauthority over the
financial affairs, transactions
and operations of the
LGU.(Sec. 305, LGC 1991)

What is a Local
Budget?
It is the LGUs
financial plan and
instrument for
implementing the
local development
Plan and its
investment
program

FINANCIAL
MANAGEMENT

Budget Officer
- Budget Allocation
- Budget Estimates
Accountant
- Trial Balance
- Debt Repayment
Treasurer
- Income Statement
- Collection Target
- Actual Collection
- Sample of lease contract
- Sources of revenue
- Masterlist of stallholders
- Frequency of collection
- Collection of other fees
- Extent of implementation
of LRC
- Fines and penalties
- Incentives

Cont. . . .
FISCAL MANAGEMENT
Market Supervisor
- Lean and peak months of
collection
- System and procedure
- Frequency of collection
- Mode of remitting
collections
- Kinds of reports prepared
- average collection of cash
ticket per day
- penalties and fines
imposed
- Ave. no. of
ambulant/transient
vendors per day
- sub-leasing of stalls
Vendors/stallholders
- awareness of LRC
- Kinds of fees paid
-lean and peak months

BUDGET PROCESS FOR

LOCAL GOVERNMENT UNITS
START
BUDGET PREPARATION
BUDGET AUTHORIZATION
BUDGET REVIEW
BUDGET EXECUTION

BUDGET ACCOUNTABILITY
END

BUDGET PREPARATION
START

BUDGET PLANNING

COST ESTIMATE

EXECUTIVE REVIEW
EXECUTIVE
BUDGET

END

LOCAL BUDGET
SECTORAL
CATEGORIES

Economic
Services

Social
Services

General
Public
Services

BUDGETARY
REQUIREMENTS

Must not exceed estimates of income

Sec.324)
Full Provisions for Statutory and contractual
obligations
Debt servicing not to exceed 20%
Set aside funds of component brgys not less
than P1000
5% of total income for calamity fund
10% of general fund for SK funds
20% of IRA for Development projects
(Sec. 287)
Proceeds from share of national wealth
should be appropriated for local devt and
livelihood projects. For Hydrothermal,
geothermal and other sources of energy,
80% of share be applied to lower the
cost of energy.

GENERAL LIMITATIONS
ON THE USE OF LOCAL
FUNDS
1. Appropriation for PS 45% =1st 3rd class
55%=4th or lower class
2. Salary rate should not be higher than the
maximum fixed for the position
3. Should not be appropriated to increase or
adjust salaries or wages of NG employees &
officials
4. Abolition or Creation of positions must be in
accordance with the provisions of LG Code
and CS rules and regulations
5. Occupied Positions in the official plantilla for
career positions must be covered by adequate
appropriations
6. Changes in designation or nomenclature of
of positions is allowed, except if vacant, but
subject to CS rules and regulations
7. Creation of new position and salary increases
or adjustments in no case be retroactive
8. LCEs Discretionary fund must not exceed 2%
of RPT and must be for public purpose

ACCOUNTABILITY FOR
PUBLIC FUNDS

Fundamental Principles
Receipts and Revenues
General Fund
Special Fund
Special Accounts
Depository Accounts
Separation of Personal
Money
Liability of Disbursing
Officers
Charges for Services
Rendered
Bond Requirement on
Private Parties
Issuance of Official Receipt

DISBURSEMENT OF
PUBLIC FUNDS

Limit of Disbursements
Disbursements for Devt.
Proj.
Cert. by Accountable
Officer
Cert. Showing
Appropriation
Void Contract
Personal Liability
Checks in Settlement of
Obligation

PROHIBITIONS IN
SPENDING PUBLIC FUNDS

Approval Of Local Chief

Executive (Sec. 344)
Election Campaign
Entertainment Expenses
Cash Advances
Payment for Services Not
Rendered
Appropriation for
Religious Benefit
Appropriation Law
Trust Funds

Financial Accountability
of Local Officials

COA and LGUs

(Constitutional and LG
Code Provision)
Penal Provision - Local
Treasurer or Accountant
shall pose the itemized
monthly collections and
disbursement
Revised Penal Code
Provisions
- Failure of Accountable
Officer to render Accounts
- Failure of a responsible
public officer to render
accounts before leaving
the country
The Case of ESC
Enterprises( Power of COA
to disallow payment

MALVERSATION OF
PUBLIC FUNDS

Art 217 of Revised Penal Code

Elements of Malversation:
Offender a public officer
Custody or control of
funds or property
Public funds or property
Appropriated, took or
misappropriated or
consented through
abandonment or
negligence, permitted
another person to take
Willful Malversation The
Case of Generoso Corpuz

TECHNICAL
MALVERSATION

Art. 220 of Revised

Penal Code
Element of Technical
Malversation

Offender an
Accountable public
officer
Applied public funds or
property to some public
use
Public use is different
from the purpose of
which they were
originally appropriated
by law or ordinance

PENALTIES FOR
MALVERSATION AND
TECHNICAL MALVERSATION

MALVERSATION:

P200
Imprisonment of
not less than 2
yrs, 4 months and
1 day
P201-6000 - not
less than 6 yrs and
1 day
P6001-12000 not
less than 10 yrs
and 1 day
P12001-22000 not less than 14
yrs, 8 months and
1 day
>
P22000 not
less than 17 yrs , 4
months and 1 day
In all cases perpetual
special
disqualification
and a fine equal
to amt disbursed.
<

TECHNICAL
MALVERSATION

Imprisonment
of not less than
6 months and 1
day or a fine
ranging from
to the total
value of the
sum misapplies
Temporary
special
disqualification
5-50% of the
sum misapplied
if no damage
or
embarassment
to the public
service

OTHER PENALTIES

Fraud Against
Public Treasury

Taking Advantage
of Official Position

Failure to Make
Delivery of of Public
Funds or Property

Frauds Committed
by Private
Individuals