Local Treasury Operations Manual

March 26, 2008 DOF DEPARTMENT ORDER NO . 10-08 SUBJECT : Local Treasury Operations Manual TO : All Regional Directors of the Bureau of Local Government Finance; Provincial, City and Municipal Treasurers and Assessors; and Others Concerned In pursuance of item 4.6 of the Joint Memorandum Circular No. 1, series of 2007, dated March 8, 2007 of the Department of the Interior and Local Government (DILG), National Economic and Development Authority (NEDA), Department of Budget and Management (DBM), and Department of Finance (DOF); and Article 456 of the Implementing Rules and Regulations of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, the Local Treasury Operations Manual is hereby promulgated, to provide local government treasurers with a single reference material and guide in the discharge of their duties and functions under the decentralized framework and environment of the Local Government Code of 1991, and introduce to them the new perspectives that they must adopt, as well as the new tools that they must acquire in order to support the expanded role that local governments have assumed in managing the development process in their respective jurisdictions. The Local Treasury Operations Manual herein promulgated consists of six (6) Books, as follows: BOOK ONE Fiscal Organization of Local Governments and the Local Treasurer Chapter 1. Fiscal Organization of Local Governments Chapter 2. Appointment, Qualifications, Powers and Functions of the Local Treasurer, Assistant Local Treasurer, and Barangay Treasurer Chapter 3. Administrative and Technical Supervision by the Bureau of Local Government Finance Chapter 4. Roles, Duties and Responsibilities of Local Treasurers Chapter 5. Other Roles of the Local Treasurer Chapter 6. Bonding of Local Treasurers and Other LGU Accountable Officers BOOK TWO Receipt and Collection of Local Income, Revenue and Other Fund Sources Chapter 1. Types of Local Income and Revenues Collected by Local Government Units Chapter 2. Collection of Revenue and Other Receipts Chapter 3. Examination of Books of Accounts and Pertinent Records of Businesses by the Local Treasurer BOOK THREE Expenditures and Disbursements Chapter 1. Concept of Funds Chapter 2. Concept of Appropriations, Allotment, Obligation/Expenditures Chapter 3. Disbursements of Local Funds Chapter 4. Barangay Appropriations, Commitments and Disbursements Chapter 5. Sangguniang Kabataan (SK) Budget BOOK FOUR Fund Management Practices, Accountability, Cash Examination, Shortages, Settlement of Accounts, and Liabilities of Local Treasurers in the Administration of Local Taxes, Fees and Charges Chapter 1. Fund Management Practices Chapter 2. Accountability, Responsibility and Liability of Local Treasurers for Funds and Property Chapter 3. Administrative, Civil and Criminal Liabilities of Local Treasurers in the Administration of Local Taxes, Fees and Charges BOOK FIVE Detailed Procedures on Real Property Tax, Business Tax, Fees and Charges and Other Resource Mobilization Chapter 1. Real Property Taxation Chapter 2. Business and Other Local Taxes Chapter 3. Fees and Charges Chapter 4. Government Enterprise Operations Chapter 5. Credit Financing and Alternative Sources of Funds BOOK SIX Local Treasury Operations (LTO) Annexes and Forms The Local Treasury Operations Manual is an exclusive issuance of the Bureau of Local Government Finance. It is intended to be a stand-alone reference for local treasurers. The relevant text of the laws, policies, regulations, issuances and court decisions are included. Hence, continuing improvement, enhancement and update thereof are necessary. Accordingly, Regional Directors, Provincial, City and Municipal Treasurers, and others concerned, are hereby enjoined to properly, efficiently and strictly implement the provisions of the Manual in their respective jurisdiction. (SGD.) MARGARITO B. TEVES Secretary