local government units fiscal sustainability scorecard...

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2015/FMP/WKSP1/029 Session: 8

Local Government Units Fiscal Sustainability Scorecard: Financial Management Performance

Review of All Local Government Units

Submitted by: Philippines

Workshop on Fiscal Management Through Transparency and Reforms

Bagac, Philippines9-10 June 2015

Ano’ng

‘yongFY2011

FY2012

FY2009

FY2010 Iskor ng

Bayan?

LGU FISCAL SUSTAINABILITY SCORECARD

Financial Management Performance Review

of All Local Government Units

LGU Fiscal Performance Review

In line with the DOF mandate to supervise the revenue

operations of all LGUs, with the objective of making

these entities less dependenton funding from the

national government.

The DOF monitors and supportsthe implementation

of policies and measures on local revenue

administration. It is necessary to have a systematic and

comprehensive process for regular assessment of fiscal

performance of LGUs.

To support the protection of local revenue and

expenditure data integrity, through data analytics & metrics

Local Government Unit

FISCAL SUSTAINABILITY

S C O R E C A R D

Baselining the performance of all

provinces, cities and municipalities

from FY2009 to FY2012

Validating the LGU data submitted

the DOF as bases and testing the

integrity of official reports of local

treasurers and assessors

to

Publication of LGU performance

Policy setting purposes

Key Result Areas

PassFinancial (Quantitative) - 90%

KRA

KRA

KRA

1

2

3

-

-

-

Revenue Generation Capacity

Local Collection Growth

Expenditure ManagementFail

Non-Financial (Qualitative) - 10%

KRA 4 - 6 - Reportorial Compliance100%

Summary of Indicators by KRA

KRA2

CollectionKRA3

Expenditure Management

KRA1

Generation Local GrowthRevenue Capacity

for Personal Services

Ratio

KRA5

Regular Updating of the Schedule of

Market Values and Conduct of

General Revision of Property

Assessments

KRA6

Timely and Accurate

Submission of the Quarterly

Report on Real Property

Assessments

KRA4

Timely and Accurate

Submission of Statement of

Receipts and Expenditures

Circulars

Compliance with BLGFCompliance with DOF

Department Order No. 8-2011

Compliance with Sec. 219 of the Local

Government Code and DOF-DILG

JMC No. 2010-01

3.1. Total Expenditure Per

Capita

3.2. Use of IRA for Local

Development Projects

3.3. Limitation on Expenditure

3.4. Limitation on Debt Service

1.1. Regular Income Level

1.2. Local Revenue Level

1.3. Local Revenue Growth

1.4. Dependence on Locally

Sourced Income

1.5. Dependence on IRA

1.6. Dependence on Other

Shares from National Tax

Collection

2.1. Tax Revenues

2.1.1 Basic Real Property Tax

2.1.2. Tax on Business

2.1.3. Other Taxes

2.2. Non-Tax Revenues

2.2.1. Regulatory Fees

2.2.2. User/Service Charges

2.2.3. Income from Economic

Enterprise/s

Max

Financial Indicators

Very Good, Good,Mean by Income

Class; Graduated1.2 Local revenue level 15Improvement,

10

% Share to Annual

Cities: 60% - 70%

10% - 15%

Weighted Scale

5from National Tax Collection

Score

2.2 Non-tax revenues 5

KRA 2. Local CollectionGrowth

Indicator Benchmark Initial Rating Max

2.1 Tax revenues Actual Growth > 0% +YoY% or -YoY%

5

Maximum Score 10

KRA 1. Revenue Generation Capacity

Indicator Benchmark Initial Rating Score

1.1 Regular income level Weighted Scale: 10

Fair, Needing

Poor

1.3 Local revenue growth Actual Growth > 0% +YoY% or -YoY% 20

1.4 Dependence on locally Prov: 10% - 15%

sourced income Cities: 30% - 40%

1.5 Dependence on IRA Prov: 80% - 85%

Regular Income | 10

1.6 Dependence on Other Shares

Maximum Score 60

Financial Indicators

Score

Passed 5Personal Services <= 55% (L

)

P Focusing on Actual Utilization/Expenditures

Statutory Obligations and Limitations

KRA 3. Expenditure Management


Mean by Very High,

3.1 Expenditure Per Capita Income Class; High, Fair, Low, 5

Graduated Very Low

3.2 Use of IRA for Local Devt. Project >=20% Passed 5

3.3 Limitation on Expenditure for <= 45% (H)

3.4 Limitation on Debt Service <=20% Passed 5

Maximum Score 20

Non-Financial Indicators

Score

4

Score

3

Score

3

KRA 6. . Quarterly Report on Real Property Assessments (QRRPA)


Timely and Accurate Submission of Complete Compliant; Non-

QRRPA according to form Compliant; No Report

Maximum Score 3

KRA 5. Updating of Schedule of Market Values


Regular Updating of SMV and Conduct of SMV is Current & Compliant;

General Revision of Property Assessments Effective Non-CompliantMaximum Score 3

KRA 4. Submission of Electronic Statement of Receipts and Expenditures


Timely and Accurate With Report (subject to Compliant; Non-

Submission of eSRE timeliness and accuracy) Compliant; No Report

Maximum Score 4

Final Rating

Grade Rating RemarksScore

compliance with reportorial requirements

requirements

reportorial requirements

of compliance with reportorial requirements

NeedsE>=40 but <50 need to be improved and validated; minimum reportorial

not submitted and/or require further validation

Weighted

>=80 A Excellent All revenue and expenditure indicators are strong; full

Most of the revenue and expenditure indicators are met

>=70 but <80 B Very Good very satisfactorily; high compliance with reportorial

Most of the revenue and expenditure indicators are above

>=60 but <70 C Good average performance; minimum level of compliance with

Revenue and expenditure indicators have not significantly

>=50 but <60 D Average changed and are generally on the average; minimum level

Almost all of the key revenue and expenditure indicators

Improvement requirements are not complied with

All revenue and expenditure indicators are way below the

<40 F Poor benchmarks; key reportorial requirements are incomplete/

Sample Preliminary Scorecard

Ano’ng

‘yongFY2011

FY2009

FY2010 Iskor ng

Bayan?

FY2012

TRENDS - PRELIMINARY

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LGU TAX WATCH ADS

ANO’NG ISKOR NG BAYAN MO?

ISKOR.BLGF.GOV.PH

Thank You & Mabuhay!

local government units fiscal sustainability scorecard...

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