Updated Implementing Guidelines of Department Order No. 054.2016, Dated 25 October 2016, on the Issuance of Certificate of Net Debt Service Ceiling and Borrowing Capacity (NDSC/BC) of Local Government Units (LGUs)

January 22, 2018 BLGF MEMORANDUM CIRCULAR NO. 005-18 FOR : All BLGF Central and Regional Directors; All Local Treasurers and Assistant Local Treasurers; and Others Concerned SUBJECT : Updated Implementing Guidelines of Department Order No. 054.2016, Dated 25 October 2016, on the Issuance of Certificate of Net Debt Service Ceiling and Borrowing Capacity (NDSC/BC) of Local Government Units (LGUs) 1. LEGAL BASES . This Memorandum Circular is issued under the following authorities: 1.1. Section 43 (c) of Executive Order No. 127, s. 1987 , which mandates the Bureau of Local Government Finance (BLGF) to develop and promote plans and programs for the improvement of credit utilization schemes, among others, at the local levels; 1.2. Department Order (DO) No. 054.2016 dated 25 October 2016 , issued by the Secretary of Finance, which provides that the BLGF shall be responsible in the validation of the accuracy and completeness of the documentary requirements, computation of the NDSC and BC, and issuance of the Certificate; and 1.3. Circular No. 926 Series of 2016, dated 13 September 2016 , issued by the Governor of the Bangko Sentral ng Pilipinas, which requires a valid BLGF certification on the borrowing and debt service capacity of the LGU in rendering a Monetary Board (MB) opinion, which will refer only to the amount that is within the borrowing capacity. 2. POLICY AND OBJECTIVES . In pursuance of the abovementioned mandates and in line with the BLGF Quality Policy, it is the goal of the BLGF to (i) deliver quality service standards in the evaluation, processing and issuance of Certificate of NDSC/BC of LGUs; (ii) build the capacity of concerned units and personnel in the proper monitoring of LGU loans and borrowings; and (iii) provide relevant information concerning the magnitude, trends and patterns of loans and borrowings of LGUs, including the analysis on the number of certificates issued by level, type, and purpose of the loans and borrowings on a quarterly and annual basis. 3. GENERAL GUIDELINES . In evaluating the streamlined documentary requirements set under DOF DO No. 054.2016, the following guidelines shall be complied with: 3.1. Section 3.1 of DO No. 054.2016 : The Letter-request from the Local Chief Executive (LCE) shall indicate (i) the selected lending institution; (ii) the terms and conditions of the proposed loan (repayment period and interest rate); and (iii) the specific purpose of the loan. 3.1.1. Interested LGUs may use the Annex A Application Letter-request Template for reference. Data needed in the letter-request may be secured from the lending institution thru its Offer Sheet and may be attached to support the application for BLGF certification. 3.1.2. Only the letter-request bearing the original signature of the concerned LCE shall be accepted. Facsimile or printed electronic signature shall not be allowed. 3.2. Section 3.2 of DO No. 054.2016 : The Certification by the Local Treasurer of presence or absence of loan/s must include the following details: (i) types of loan/s and other obligations contracted; (ii) purpose of loan/s and other obligations contracted; (iii) name of the lending institution/s; (iv) date of approval and maturity of loan/s; (v) terms and conditions (interest rate and number of years to pay); (vi) remaining balances of loan/s and other obligation/s; and (vii) annual amortization schedules (segregating the principal from the interest) issued by the lending institution/s. 3.2.1. The Local Treasurer shall use Annex B Certification on Existing/Absence of Loans Template for this purpose. The required information must be supplied in the certification; 3.2.2. Only the certification bearing the original signature of the Local Treasurer shall be accepted. Facsimile or printed electronic signature shall not be allowed; and 3.3. Section 3.3 of DO No. 054.2016 : The Commission on Audit (COA) Annual Audit Certificate for the most recent year shall be supported by the year-end financial reports for the past three (3) years: (i) Pre-closing Trial Balance, (General Fund); and (ii) detailed Statement of Financial Performance. 3.3.1. The COA Audit Certificate of the immediately preceding year shall be required. If at the time of application with the BLGF the same is not yet issued by COA, the report of the first preceding year shall be submitted, provided that the latest year-end financial report duly stamped as received by COA shall form part of the submission; 3.3.2. Adverse findings refer to observations of COA on local financial management and matters specifically concerning the Local Treasurer, such as, but not limited to: 3.3.2.1. Unremitted and undeposited collection; 3.3.2.2. Unliquidated cash advances; 3.3.2.3. Unremitted mandatory contributions to GSIS, PAGIBIG, PhilHealth, withholding tax to BIR, etc.; 3.3.2.4. Unreconciled cash book with the Bank Reconciliation Statement and Subsidiary Ledger. 3.3.3. For LGUs with adverse findings on its latest COA Annual Audit Report, an Agency Action Plan and Status of Implementation (AAPSI) duly received by COA shall be required. The status of recommendations in the AAPSI may be validated by the BLGF, if necessary. 3.4. Section 3.4 of DO No. 054.2016 : If the Lending Institution is (1) not an authorized government depository bank or (2) an authorized government bank required to obtain the prior approval of the DOF, as provided under Department Circular (DC) No. 002.2016 dated 8 July 2016, as amended by DC No. 001.2017 dated 11 May 2017, a Certification stating that it shall not require LGU deposits as compensating balance for the loan shall be required; 3.4.1. If the lending institution of the LGU is any of the following, the Certification shall not be required: 3.4.1.1. Land Bank of the Philippines (LBP); 3.4.1.2. Development Bank of the Philippines (DBP); 3.4.1.3. Philippine Postal Savings Bank, Inc. (PPSB), now renamed as "Overseas Filipino Bank, Inc., a Savings Bank of LANDBANK"; 3.4.1.4. Al Amanah Islamic Investment Bank of the Philippines (AAIIBP); 3.4.1.5. United Coconut Planters Bank (UCPB); 3.4.1.6. Philippine Veteran's Bank (PVB); and 3.4.1.7. Municipal Development Fund Office (MDFO). 3.5. Section 4 of DO No. 054.2016 : The Documentary Requirements for LGUs Affected by Natural and/or Man-Made Disasters shall pertain to the documents required in Sections 3.1 and 3.2 of DO No. 054.2016 and the certified copy of the declaration of state of calamity. 3.5.1. The LGU applying under the circumstances specified in Section 4 of DO No. 054.2016 shall be required to submit a certified copy of declaration of national or local authorities to the effect that the LGU is under a state of calamity. Such declaration could either be (i) a certified copy of the declaration issued by the President of the Philippines, or (ii) a Resolution of the concerned Sanggunian ; 3.5.2. The period of one (1) year shall be reckoned from the date indicated on the declaration of the President or the Sanggunian Resolution; and 3.5.3. Only the requirements set under 3.1 and 3.2 hereof shall be submitted. 3.6. Section 6 of DO No. 054.2016 : Effectivity and Applicability of the Certificate of NDSC/BC . The Certificate of NDSC/BC shall have one (1) year effectivity and validity, in the case of regular LGU applications, or a period of two (2) years, in the case of disaster-stricken LGUs, which shall be reckoned from the date indicated on the Certificate of NDSC/BC. 3.6.1. A new certification shall be secured under the following circumstances: i. Change in the terms and conditions, financing institution/s, or the loan purpose is no longer reflective of the actual requirement of the LGU at the time of the approval. ii. Refinancing or restructuring of existing loan/s, either to extend the duration or increase the principal; and iii. Other circumstances affecting the content or integrity of the certificate. 3.7. No additional requirements, fees, or conditions shall be imposed, nor any authority issued to a BLGF employee to negotiate for and in behalf of the LGU with any lending institutions, service provider, or supplier, directly or indirectly, relative to the processing of the BLGF Certification. The Sanctions provided under Section 8 of DO No. 054.2016 shall apply with respect to violations of the said DO. 4. OPERATIONAL GUIDELINES . To operationalize efficiently the foregoing provisions and Sections 5 and 7 of DO No. 054.2016, the following guidelines are hereby adopted: 4.1. Responsibilities of the Local Treasurer . As financial adviser of the LGU regarding the disposition of local government funds and on such other matters relative to public finance, the Local Treasurer shall: 4.1.1. Inform the LCE that all application for loans/borrowings shall require a Certificate of NDSC/BC, and that the application or request for revocation of the old certificate and issuance of a new one to conform with the changes in lending institutions, purpose, terms of loans, and interest rate, therefore shall be filed directly with the BLGF Regional Office (BLGF RO), except for LGUs in NCR, which shall file directly with the BLGF Central Office (BLGF CO); 4.1.2. Provide assistance to the LCE and ensure the completeness and orderliness of the application. Annex A1 Checklist of Documentary Requirements for the Issuance of Certificate of NDSC/BC may be used as a guide; 4.1.3. As may be applicable, submit personally or through his/her duly authorized representative the LGU application letter-request together with the documentary requirements for the issuance of Certificate of NDSC/BC. The authorized representative must present a written authority bearing the original signature of the concerned Local Treasurer, and valid IDs; 4.1.4. In case of request for revision, return the original copies of the issued Certificates to the RO; and 4.1.5. Immediately inform the BLGF RO or CO using Annex D Letter of Local Treasurer if Loan is Disapproved/Not Pursued , in case the loan application of the LGU has been disapproved by the lending institution or not pursued by the LGU, citing the corresponding certificate number of the Certificate of NDSC/BC. 4.2. Responsibilities of the BLGF Regional Office 4.2.1. The Regional Director shall assign a regular Financial Analyst (FA) or, in the absence thereof, a regular Local Treasury Operations Officer (LTOO), as Action Officer to accept applications from the LGUs within its jurisdiction, submitted thru mail or personally by the concerned LCE or local treasurer, or their duly authorized representative; 4.2.2. Check the completeness and orderliness of the documentary requirements submitted; 4.2.3. Return to the LGU the application, together with a Notice of Deficiency in Documentary Requirements, if found incomplete and not in order; 4.2.4. Acknowledge receipt of application, if found complete; 4.2.5. Make a preliminary computation of the NDSC/BC in accordance with Sections 5.1 and 5.2 of DO No. 054.2016. The COA audited financial statements submitted by the LGU shall be used as the basis for the computation of the NDSC/BC. The approved SRE reports may also be used for validation and preliminary computation; 4.2.6. Prepare the endorsement letter to the BLGF CO together with the following: i. Checklist (Annex A1) duly signed by the Action Officer and the Regional Director, and the accompanying documentary Requirements; and ii. Preliminary computations (Enclosures A, B and C). 4.2.7. Send through email address at [emailprotected] the excel file of preliminary computations (Enclosures A, B and C) for evaluation; and 4.2.8. The BLGF RO's service standard period from acceptance of LGU application with complete documentary requirements to the issuance of endorsement to BLGF CO Action Officer shall have a maximum of fifteen (15) working days. 4.3. Responsibilities of BLGF Central Office 4.3.1. The Chief of Local Debt Monitoring and Evaluation Division (LDMED) shall assign the request to regular employees as Action Officer who shall evaluate the following: i. Application Letter-Request; ii. Checklist (Annex A1) and the accompanying documentary Requirements; and iii. The preliminary computations (Enclosures A, B, C) made by the RO. 4.3.2. Upon receipt of the endorsed application for the issuance of Certificate of NDSC/BC and preliminary computations, the assigned Action Officer shall validate the completeness and orderliness of the documentary requirements and the correctness of the preliminary computation of NDSC/BC as prescribed in Sec. 3 of this circular; 4.3.3. Any deficiency observed shall cause the issuance of a Notice of Deficiency in Documentary Requirements, copy furnished BLGF RO. The LGU shall be allowed to comply with their deficiency within 30 days from date of receipt of the Notice of Deficiency. If not complied with within 30 days, the BLGF CO shall issue a Notice of Return of Application without Action and return the application to the concerned LGU; 4.3.4. In case of applications of LGUs outside NCR directly submitted to the BLGF CO, endorse the application to the concerned BLGF RO within three (3) days from its receipt; 4.3.5. In case of applications of LGUs in NCR, submitted thru mail or personally by the concerned LCE or local treasurer, or their duly authorized representative: 4.3.5.1. Check the completeness and orderliness of the documentary requirements submitted; 4.3.5.2. Return to the LGU the application, together with a Notice of Deficiency in Documentary Requirements, if found incomplete and not in order; 4.3.5.3. Acknowledge receipt of application, if found complete; and 4.3.5.4. Compute the NDSC/BC in accordance with Sections 5.1 and 5.2 of DO No. 054.2016. 4.3.6. The BLGF CO's service standard for the checking of completeness and orderliness of documentary requirements and preliminary computations, shall not exceed ten (10) working days, reckoned from the date the Action Officer received the LGU application, together with the documentary requirements, or to the issuance of a Notice of Deficiency in Documentary Requirements, or submission to the BLGF Executive Director for approval of the NDSC/BC; 4.3.7. The Office of the Executive Director shall, within five (5) days upon receipt of duly evaluated LGU application and in the absence of any legal impediments, approve and clear the release of the Certificate of NDSC/BC to the concerned LGU, and the Monthly Inventory Report of Issued Certificates for general public information; 4.3.8. Furnish the BLGF ROs the Monthly Inventory Report of Issued Certificates thru their official email address every 10th of the following month for monitoring purposes; 4.3.9. Furnish the Bangko Sentral ng Pilipinas the Monthly Inventory Report of Issued Certificates to facilitate the issuance of MB Opinion, every 15th of the month; and 4.3.10. Publish in the BLGF Website every 15th of the following month the summary of issued Certificates to inform the public of loan applications of the LGUs. 5. MONITORING OF LGU LOANS AND BORROWINGS . In accordance with Section 7 of DO No. 054.2016, all LGU loans and borrowings shall be regularly monitored by the BLGF using the simplified Statement of Indebtedness, Payments and Balances (SIPB). 5.1. Responsibilities of the Local Treasurer . In addition to the responsibilities set under 4.1 hereof, the Local Treasurer shall perform the following functions: 5.1.1. Prepare the SIPB using the prescribed BLGF form (Annex E Simplified SIPB) ; 5.1.2. Coordinate with the Local Accountant in completing the annual SIPB report by requesting for the data on the remaining loan balance (principal and interest). In case of bond flotation, request data on deposit to bond sinking fund and sinking fund balance to date; 5.1.3. For LGUs with loan/s, submit the annual SIPB report on or before 31st of March of the ensuing year to the respective BLGF RO except for LGUs in the NCR to submit directly to the BLGF CO; 5.1.4. Within ten (10) days after the approval and/or initial release of a newly contracted loan, submit SIPB report to the respective BLGF RO except for LGUs in the NCR to submit directly to the BLGF CO; and 5.1.5. For LGUs without loan/s, certify that it has no existing loan, and submit to the respective BLGF RO except for LGUs in the NCR to submit directly to the BLGF CO. 5.2. Responsibilities of the BLGF RO . The BLGF ROs shall: 5.2.1. Require the Local Treasurers to submit to BLGF RO the SIPB annually; 5.2.2. Assist the Local Treasurers in accomplishing the SIPB; 5.2.3. Regularly monitor LGU compliance on SIPB submission, and consolidate SIPB reports using the BLGF prescribed template and submit to BLGF CO on or before 30th of April of every year; and 5.2.4. Submit to the BLGF CO every 15th of the month a status report of issued certificate based on the Monthly Inventory Report of Issued Certificates furnished by the BLGF CO. 5.3. Responsibilities of the BLGF CO . The BLGF CO, through the LDMED, shall: 5.3.1. Regularly monitor NCR LGU and Regional compliance on SIPB submission, and consolidate SIPB reports using the BLGF prescribed template on or before 31st of May of every year; 5.3.2. Prepare a consolidated report on the annual SIPB for policy formulation purposes of the BLGF and for submission to the DOF and other stakeholders requiring/requesting the report; and 5.3.3. Provide SIPB report/s compliance to concerned agencies for performance monitoring and evaluation purposes. 6. Repealing Clause . This circular amends BLGF Memorandum Circular No. 11-003-2016, dated 17 November 2016 and BLGF Memorandum Circular No. 005-2016, dated 26 February 2016. All Bureau orders and issuances or parts thereof that are inconsistent herewith are hereby repealed or modified and amended accordingly. 7. Effectivity . This Circular shall take effect immediately. The Regional Directors of this Bureau are hereby instructed to widely and immediately disseminate this Circular to all concerned. Be guided accordingly. (SGD.) NIO RAYMOND B. ALVINA OIC Executive Director ANNEX A Application Letter-request ________________ Date Mr. NIO RAYMOND B. ALVINA OIC Executive Director Bureau of Local Government Finance Department of Finance 8th floor, EDPC Bldg., BSP Complex, Roxas Blvd., Malate, Manila Thru: _________________________________ (Name of Regional Director) _________________________________ (Address of BLGF-Regional Office) Dear Director ALVINA : Relative to the loan application of the ___________________, (Name of LGU) with the ____________________________, (Name of Lending Institution) may we request for the issuance of Certificate of Net Debt Service Ceiling and Borrowing Capacity from that Office, with the following information provided for your reference/consideration: Credit Facility Term of Loan Amount of Loan [Indicate the purpose of the loan as stated in the approved Resolution.] [Indicate the number of years to pay including grace period and the interest rate (Refer to Offer Sheet from the lending institution)] [Indicate the amount of proposed loan] Attached are the documents required to facilitate our request in compliance with DOF DO No. 054.2016, dated 25 October 2016, to wit: 1. Certification by the Local Treasurer of presence or absence of loan/s; 2. Commission on Audit (COA) Annual Audit Certificate for the most recent year, supported by year-end financial reports for the past three (3) years, and the Agency Action Plan and Status of Implementation (AAPSI) of the latest Annual Audit Report (AAR) recommendations if the LGU had adverse findings; [and] [Include the following item 3 if the lending institution is (1) not an authorized government depository bank or (2) an authorized government depository bank but required to obtain the prior approval of the BLGF.] 3. Certification issued by the lending institution stating that it shall not require LGU deposits as compensating balance for the loan. The authorized representative/s of the ____________________ (LGU Type) is/are _________________________________ Mr./Ms. (Name of the Local Treasurer) and _________________________________ Mr./Ms. who shall be the focal person/s for this application. He/She/They may be contacted thru _________________________________ (Tel No./Mobile No./Email Address) . [Choose one mode of receipt of the Certificate.] Kindly send the certificate thru registered mail. We will pick up the certificate thru our authorized representative. Thank you. Very truly yours, ________________________ Name and Signature Title of LCE ANNEX A1 Checklist of Documentary Requirements for the Issuance of Certificate of NDSC/BC Name of LGU: ________________________ Date of Application: _______________ REQUIREMENTS 1. Application Letter-request (Annex A) from the Local Chief Executive indicating: i. The lending institution, ii. Terms and conditions of the proposed loan: a) repayment period, and b) interest rate iii. The purpose of the loan. Note: Refer to Offer Sheet prepared by the lending institution (maybe attached to fast track evaluation/validation process) 2. Certification of presence/absence of loan/s by the Local Treasurer (Annex B) with the following details: i. Types of loans & other obligations contracted; ii. Purpose of the loans & other obligations contracted; iii. Name of the lending institutions; iv. Date of approval & maturity; v. Terms & conditions (interest rate & number of years to pay); vi. Remaining balances of loans and other obligations; and vii. Annual amortization schedules (segregating the principal from the interest) issued by the lending institution/s . 3. Commission on Audit (COA) Annual Audit Certificate for the most recent year, which shall be supported by the year-end financial reports for the past three (3) years: 20___ 20___ 20___ i. Pre-closing Trial Balance (GF) ii. Statement of Financial Performance An Agency Action Plan and Status of Implementation (AAPSI) of Latest Annual Audit Report Recommendations report on COA recommendations shall be required, while they may only be 'qualified' and not 'adverse,' if findings pertain to local financial management and treasury matters or specifically concern the local treasurer, such as, but not limited to: (i) Unremitted and undeposited collection; (ii) Unliquidated cash advances; (iii) Unremitted mandatory contributions of GSIS, PAGIBIG, PhilHealth, withholding tax to BIR and (iv) Unreconciled cash book with the Bank Reconciliation Statement and Subsidiary Ledger . In case COA cannot render an opinion due to non-submission of financial reports, submit COA's Letter to the Management and the AAPSI. If a Disclaimer is rendered, submit AAPSI . Note: AAPSI is not required unless COA has rendered Unqualified Opinion . 4. Certification issued by the lending institution stating that it shall not require LGU deposits as compensating balance for the loan, if such lending institution is (1) not an authorized government depository bank or (2) an authorized government bank required to obtain the prior approval of the Department of Finance, as provided under the DOF Department Circular No. 01.2017 dated 11 May 2017. If the lending institution of the LGU is any of the following, as indicated in the letter request or Offer Sheet, the Certification shall not be required: 1. Land Bank of the Philippines (LBP); 2. Development Bank of the Philippines (DBP); 3. Philippine Postal Savings Bank, Inc. (PPSB), now renamed as "Overseas Filipino Bank, Inc., a Savings Bank of LANDBANK"; 4. Al Amanah Islamic Investment Bank of the Philippines (AAIIBP); 5. United Coconut Planters Bank (UCPB); 6. Philippine Veteran's Bank (PVB); and 7. Municipal Development Fund Office (MDFO). ANNEX B Certification of Local Treasurer on Existing/Absence of Loans CERTIFICATION This is to certify that the _______________________________ (Name of LGU) has (existing loan/s, as follows; or no existing loan). Financing Institution Type of Loan Purpose Amount Date Availed Date of Maturity Interest Rate Tenor (# of years to pay) Outstanding Balance as of __________ 1. 2. 3. Add rows as may be necessary Attached is/are the amortization schedule/s for reference. This certification is issued in support of the request of the ____________________, (Name of LGU) for the issuance of the Certificate of Net Debt Service Ceiling and Borrowing Capacity from the Bureau of Local Government Finance. Done this ________________, Date at _____________________, (Name of LGU) Philippines. ____________________________ (Name and Signature) Provincial/City/Municipal Treasurer ANNEX C Agency Action Plan and Status of Implementation (AAPSI) CY ______ Annual Audit Report Ref. Audit Observations Audit Recommendations Agency Action Plan Status of Implementation Reason for Partial/Delay/Non- Implementation if applicable Action Taken/Action to be taken Action Plan Person/Dept. Responsible Target Implementation From To Prepared by: __________________________ Local Treasurer __________________________ Local Accountant Approved: Received: __________________________ Local Chief Executive ______________________ Date __________________________ COA Auditor ______________________ Date Received Note : Status of Implementation may either be (a) Fully Implemented (b) Ongoing (c) Not Implemented (d) Partially Implemented (e) Delayed. ANNEX D Letter of Local Treasurer if Loan is Disapproved/Not Pursued _______________ Date Mr. Nio Raymond B. Alvina OIC Executive Director Bureau of Local Government Finance Department of Finance 8th floor, EDPC Bldg., BSP Complex, Roxas Blvd., Malate, Manila Dear Director ALVINA : This refers to the loan application of this _____________ LGU Type with the __________________________, Name of Financing Institution with corresponding Certificate of Net Debt Service Ceiling and Borrowing Capacity (NDSC/BC) issued by your Office, which contains the following information: Certificate No.: Date Issued: Amount of NDSC: PhP Amount of BC: PhP Purpose of Loan: In connection with this, please be informed that the said loan was ____________________________________________ [state if the loan was disapproved or was not pursued by the LGU, and the reason/s] . For your information. Very truly yours, _______________________________ Provincial/City/Municipal Treasurer ANNEX E Simplified Statement of Indebtedness, Payments and Balances (SIPB) Annual Statement of Indebtedness, Payments and Balances (SIPB) Name of LGU: ______________________ Instruction: Please prepare a Statement for each kind of loan . ITEM NO. PARTICULARS DETAILS 1 LGU Income Classification 2 Date of Report 3 Lending Institution (Bank or Creditor) 4 Certificate Number NDSC/BC 5 Date of Certification NDSC/BC 6 Monetary Board (MB) Resolution Number 7 Date of MB Opinion 8 Date of Approval of Loan 9 Amount Approved* 10 Maturity Date 11 Type of Indebtedness Instrument (Loan, Bond or other form of indebtedness) 12 Purpose of Indebtedness 13 Terms and Conditions: Fixed or Variable 14 Terms and Conditions: No. of Years of Indebtedness 15 Terms and Conditions: Interest Rate 16 Terms and Conditions: Grace Period (Number of Months or Years) 17 Frequency of Payment 18 Annual Amortization: Principal 19 Annual Amortization: Interest 20 Annual Amortization: Gross Receipt Tax (GRT) 21 Starting Date of Payment 22 Cumulative Payment from Starting Date: Principal 23 Cumulative Payment from Starting Date: Interest 24 Cumulative Payment from Starting Date: GRT 25 Total Amount Released (Availment as of date) 26 Remaining Balance to Date/Undrawn Amount (Line 9-25=26) 27 Outstanding Loan Balance after Principal Payment (Line 9-22=27) 28 Arrears: Principal (if any) 29 Arrears: Interest (if any) 30 Collateral Security 31 Deposit to bond sinking fund for the year 32 Sinking fund balance to date, if any 33 Breakdown of fees and other related costs (of loan) 34 Other relevant terms and conditions (of loan) Certified Correct by: Date Issued: __________________________________ Signature over Printed Name of Local Treasurer ___________________________ Note: * Please indicate if on a staggered basis. SOURCES OF SIPB INFORMATION Item No. Information Type Instruction Source of Information 1 Income Class Indicate the LGU income classification. Latest DOF Department Order 2 Date (mm/dd/yyyy) Indicate cut-off date of report, e.g. , Ending 1st Qrt. March 31, 2016. Reporting date 3 Name Indicate the name of the lending institution (Bank/Financial Institution or Private Corporation). Write full name. Example: Land Bank of the Philippines, Development Bank of the Philippines Loan Agreement 4 Number Issued Certificate Number of Borrowing Capacity. NDSC/BC issued by BLGF 5 Date (mm/dd/yyyy) Input the issue date of Certificate of Net Debt Service and Borrowing Capacity (CNDSBC) by BLGF. CNDSBC issued by BLGF 6 Number Loans from GFI (DBP/LBP) passes through the Monetary Board. Refer to the MB resolution number provided. Bangko Sentral ng Pilipinas (BSP) 7 Date (mm/dd/yyyy) Refer to the MB resolution date of approval. Bangko Sentral ng Pilipinas (BSP) 8 Date (mm/dd/yyyy) Date of Approval of Loan. Loan Agreement 9 Amount Indicate the principal approved amount of loan. Loan Agreement 10 Date (mm/dd/yyyy) Indicate the date that the loan finally becomes due or date of settlement or completion of payment. Loan Agreement 11 Description List Kind of indebtedness Specify the type of indebtedness instrument. Example: Bond or Syndicated/Bilateral Debt, Loan (Secured or Unsecured), Lease (Build-Operate-Transfer, Build-Lease-Transfer, etc.), Mortgage, Combination, etc. Loan Agreement 12 Description List Type of Loan Indicate the reason for borrowing. Example: Construction of: Health Care Center, Social Welfare Centers, Trade Center (Public Market or alike), Water District, School, Government Center (Provincial Hall, City Hall, Municipal Hall, Barangay Hall), Transport Terminal, Sea Port, IT Systems, Entertainment/Sports Center, Waste Management Facility, Disaster/Risk Management Center, Others Loan Agreement/Council Resolution 13 Description List Specify if the loan rate is fixed or variable (floating), indicate the base and spread.) Loan Agreement 14 Number Specify the number of years the LGU is bound to the lending institution to pay in full. (Period covered to pay the loan.) Loan Agreement 15 Rate Indicate the agreed interest rate of the loan. Loan Agreement 16 Number Indicate the number of years that the lending institution provided to LGU to defer the payment of principal. Usually this first one or two years of the loan. Loan Agreement 17 Amount Indicate the amount of annual principal payment made based on amortization schedule. Loan Agreement 18 Pre-defined Answer Indicate the agreed frequency of payment: Monthly, Quarterly, Semi-annually, or Annually Select only one answer. Loan Agreement 19 Amount Indicate the amount of annual interest payment made based on the amortization schedule. Loan Agreement 20 Amount Indicate the amount of annual Gross Receipt Tax (GRT) payment made based on the amortization schedule. Loan Agreement 21 Date (mm/dd/yyyy) Indicate the 1st date of payment in relation to the amortization schedule. Record of Debt Service (RDS) Amortization Schedule 22 Amount Indicate the amount of cumulative principal payment made from starting date of payment. RDS-Amortization Schedule 23 Amount Indicate the amount of cumulative interest payment made from starting date of payment. RDS-Amortization Schedule 24 Amount Indicate the amount of cumulative GRT payment made from starting date of payment. RDS-Amortization Schedule 25 Amount Indicate the total amount that the lending institution released to the LGU. Loan Agreement 26 Amount Indicate the remaining unreleased balance as of the reporting date. (Line 9-25=26) Accounting Office Subsidiary Ledger 27 Amount Indicate the outstanding loan balance after principal payment, as of the reporting date. (Line 9-22=27) Accounting Office Subsidiary Ledger 28 Amount Indicate the amount of principal in arrears as of reporting date. Subsidiary Ledger 29 Amount Indicate the amount of interest in arrears as of reporting date. Subsidiary Ledger 30 Description List Indicate the collateral if any, attached to the loan/s Loan Agreement 31 Amount Indicate the amount set aside for the installment payment of maturing loans/bonds Accounting 32 Amount Indicate the cumulative balance of sinking fund if any, reporting date. Accounting 33 Description List/Amount There are costs associated in each loan. Enumerate here the fees and other related cost incurred to facilitate the loan. i.e. , Documentary Stamp Fees, Up-front Fees and Commitment Fees LGU 34 Description List If any, and other than the terms and conditions indicated above, enumerate herewith the other relevant terms. Loan Agreement ENCLOSURE A Detailed Statement of Income Sources Name of LGU: ___________________________ Income Classification: ___________ 2013 2014 2015 2016 Real Property Tax (RPT) 0.00 0.00 0.00 Less: Discount 0.00 0.00 0.00 Net RPT 0.00 0.00 0.00 Business Tax 0.00 0.00 0.00 - Tax on Business 0.00 0.00 0.00 - Franchise Tax 0.00 0.00 0.00 - Tax on Sand, Gravel & Other Quarry Resources 0.00 0.00 0.00 Contractors 0.00 0.00 0.00 - Tax on Delivery Trucks & Vans 0.00 0.00 0.00 - Amusement Tax on Admission 0.00 0.00 0.00 - Banks & Other Financial Institutions 0.00 0.00 0.00 - On Peddlers 0.00 0.00 0.00 - Other Business Taxes 0.00 0.00 0.00 - Fines & Penalties 0.00 0.00 0.00 Other Taxes - Tax on Transfer of Real Property Ownership 0.00 0.00 0.00 - Real Property Tax on Idle Lands 0.00 0.00 0.00 - Professional Tax 0.00 0.00 0.00 - Occupational Tax 0.00 0.00 0.00 - Community Tax 0.00 0.00 0.00 - Other Local Taxes 0.00 0.00 0.00 - Fines & Penalties Local Taxes 0.00 0.00 0.00 Fees & Charges 0.00 0.00 0.00 - Weights and Measures 0.00 0.00 0.00 - Permit Fees 0.00 0.00 0.00 - Motor Vehicles User Charges 0.00 0.00 0.00 - Other Permits & Licences 0.00 0.00 0.00 - Fishery Rental Fees 0.00 0.00 0.00 - Franchising and Licensing Fees 0.00 0.00 0.00 - Fines & Penalties 0.00 0.00 0.00 - Registration Fees 0.00 0.00 0.00 - Registration Plates, Tags & Sticker Fees 0.00 0,00 0.00 Service Income - Clearance/Certificates/Fees 0.00 0.00 0.00 - Affiliation Fees 0.00 0.00 0.00 - Garbage Fees 0.00 0.00 0.00 - Inspection Fees 0.00 0.00 0.00 - Medical, Laboratories, Dental Fees 0.00 0.00 0.00 - Toll and Terminal Fees 0.00 0.00 0.00 - Library Fees 0.00 0.00 0.00 - Hospital Fees 0.00 0.00 0.00 - Occupation Fees 0.00 0.00 0.00 - Processing Fees 0.00 0.00 0.00 - Landing and Parking Fees 0.00 0.00 0.00 - Other Service Income 0.00 0.00 0.00 - Other Fines & Penalties 0.00 0.00 0.00 Receipts from Economic Enterprises 0.00 0.00 0.00 - Income from Cemetery 0.00 0.00 0.00 - Income from Canteen-Operations-Trng. Center 0.00 0.00 0.00 - Income from Markets 0.00 0.00 0.00 - Income from Transportation System 0.00 0.00 0.00 - Income from Slaughterhouse 0.00 0.00 0.00 - Income from Waterworks System 0.00 0.00 0.00 - Rent Income 0.00 0.00 0.00 - Other Fines and Penalties 0.00 0.00 0.00 - Other Business Income 0.00 0.00 0.00 - Fines and Penalties Business Income 0.00 0.00 0.00 Other Income 0.00 0.00 0.00 - Interest Income 0.00 0.00 0.00 - Sales Revenue Demo Farm 0.00 0.00 0.00 - Insurance Income 0.00 0.00 0.00 - Income fr Grants, Donations 0.00 0.00 0.00 - Other (Miscellaneous) Income 0.00 0.00 0.00 - Subsidy from (Other Funds) 0.00 0.00 0.00 - Gain on Sale of Disposed Asset 0.00 0.00 0.00 - Other Fines and Penalties Other Income 0.00 0.00 0.00 Internal Revenue Allotment 0.00, 0.00 0.00 0.00 Other Share from National Tax Collection 0.00 0.00 0.00 Share from Evat 0.00 0.00 0.00 Share from PAGCOR/PCSO 0.00 0.00 0.00 Share from National Wealth 0.00 0.00 0.00 GRAND TOTAL 0.00 0.00 0.00 Prepared by: Date Prepared: ___________________ Name and Signature of Financial Analyst BLGF Region ____________ Note : To be included as enclosure in the indorsement letter to be sent to BLGF-CO after the preliminary computation of Net Debt Service Ceiling and Borrowing Capacity . ENCLOSURE B Computation of Annual Regular Income (In Thousand Pesos) A. Locally Sourced Income Item 2013 2014 2015 Average 1. Real Property Taxes - - - - 2. Business Taxes - - - - 3. Fees and Charges - - - - 4. Receipts from Eco. Ent. - - - - 5. Other Income Interest Income - - - - Total - - - - B. Other Shares from National Tax Collection Item 2013 2014 2015 Average 1. Share from E-VAT - - - - 2. Share from PAGCOR/PCSO - - - - 3. Share from National Wealth - - - - Total - - - - C. Current Year IRA (2016) - ANNUAL REGULAR INCOME (A+B+C) - Note: IRA in the Average Annual Income is based on CY 2016 Final IRA as estimated by DBM. Amortization Schedule Financing Institution Total Principal Interest GRT Name of Financing Institution - - - - - - - - - - - - - - - - - - - - Total - - - - Prepared by: Date Prepared: _____________________________ Financial Analyst ____________________ Note : To be included as enclosure in the indorsement letter to be sent to BLGF-CO after the preliminary computation of Net Debt Service Ceiling and Borrowing Capacity. ENCLOSURE C Net Debt Service Ceiling and Borrowing Capacity FY 2016 (In Thousand Pesos) Year Average Locally Sourced Income (LSI) Other Share from National Tax Coll. IRA Annual Regular Income (ARI) Maximum Debt Service Capacity Annual Amortization of Existing Loan (Principal + Interest) Net Debt Service Ceiling Borrowing Capacity (1) (2) (3) (4) (2+3+4) (5) (5 x 20%) (6) (7) (6-7) (8) (8 x ______) (9) 2016 - - - - - - - - Note: 1) Debt Service Capacity is computed in accordance with Sec. 324 b of the LGC , which is 20% of the ARI. 2) Annual Regular Income for CY 2016 is determined based on the average locally sourced income and share from national tax collection for the past 3 years plus CY 2016 Final IRA DBM estimate. 3) Annual Amortization of existing loans were based from the availed loans from the _________ 4) Net Borrowing Capacity is computed based on the annuity factor of _______ (_____%, ____ yrs.). Prepared by: Noted by: __________________________ Financial Analyst __________________________ Regional Director Date Prepared __________________ Note: To be included as enclosure in the indorsement letter to be sent to BLGF-CO after the preliminary computation of Net Debt Service Ceiling and Borrowing Capacity.