Local Public Financial Management Tools for the Electronic Statement of Receipts and Expenditures (eSRE)

June 2015 LOCAL PUBLIC FINANCIAL MANAGEMENT TOOLS FOR THE ELECTRONIC STATEMENT OF RECEIPTS AND EXPENDITURES (eSRE) This Manual was developed under the European Union (EU)-funded "Support to the Local Government Units for More Effective and Accountable Public Financial Management (LGU PFM 2) Project." Published by the Bureau of Local Government Finance Department of Finance 8F EDPC Building, BSP Complex, Roxas Blvd. 1004 Metro Manila, Philippines Cover design and layout by Local Financial Data Analysis Division-BLGF All rights reserved. No part of this book may be granted in any form or by means without express permission of the copyright owners and the publisher. ISBN 978-971-94098-7-8 First Printing, 2015 Printed in the Philippines. ACRONYMS ADB Asian Development Bank AGILE Accelerating Growth Investment and Liberalization with Equity BLGF Bureau of Local Government Finance CCR Cost to Collection Ratio CIETRR Capital Investment Expenditures to Total LGU Revenue Ratio COA Commission on Audit CTAR Cash Target Accomplishment Rate DBM Department of Budget and Management DILG Department of the Interior and Local Government DOF Department of Finance DNAR Debt to Net Asset Ratio DSER Debt Service Expenditure Ratio DSR Debt Service Ratio EC Expenditures per Capita EER Economic Expenditure Ratio EPR Enterprises Profitability Rate ER Expenditure Ratio ESER Economic Services Expenditure Ratio eSRE Electronic Statement of Receipts and Expenditures GDP Gross Domestic Product GRDP Gross Regional Domestic Product GFSM Government Financial Statistics Manual GOSDSR Gross Operating Surplus to Debt Service Ratio IFR Internal Financing Ratio IMF International Monetary Fund IRA Internal Revenue Allotment LGAS Local Government Accounting System LGFPMS Local Government Financial Performance Monitoring System LGU Local Government Unit LSR Locally Sourced Revenue MOOE Maintenance and Other Operating Expenditures NGAS New Government Accounting System NOSTRR Net Operating Surplus to Total LGU Revenue Ratio PIDS Philippine Institute for Development Studies PSA Philippine Statistical Association PSER Personal Services Expenditure Ratio PSERC Personal Services Expenditure Ratio Codal PSERT Total Personal Services Expenditure Ratio QRPT Quarterly Reports on Real Property Tax Collection QRRPA Quarterly Reports on Real Property Assessment RC Revenue per Capita RPTAR Real Property Tax Accomplishment Rate RTAR Revenue Target Accomplishment Rate SEF Special Education Fund SER Social Expenditure Ratio SIE Statement of Income and Expenditures SRE Statement of Receipts and Expenditures SR/DSR Savings Rate/Dissaving Rate SSER Social Services Expenditure Ratio TROCC Total Revenue Office Operations Cost UCBTER Uncommitted Cash Balance to Total LGU Expenditures Ratio USAID United States Agency for International Development WB World Bank ACKNOWLEDGMENT This Manual on Local Public Financial Management Tools for the Electronic Statement of Receipts and Expenditures (eSRE) is the result of the comprehensive studies under the auspices of the Asian Development Bank (ADB) Technical Assistance (TA) projects since 2007 (ADB TA 4556, ADB TA 4778, and ADB TA 7451), and the European Union (EU)-funded "Support for Local Government Units for More Effective and Accountable Public Financial Management" (LGU PFM 2) Project for the Bureau of Local Government Finance and the local treasury offices. With the support of the EU LGU PFM 2 Project, the public financial management tools which utilize the eSRE data and eSRE system have been manualized with the aim of improving local public financial management. We extend our gratitude to the Local Chief Executives, officials and personnel from the Local Treasury offices, as well as the pilot LGUs, who unselfishly gave their valuable time and participation in the development of this Manual. We also thank the BLGF Officials, Regional Directors and personnel who participated in the SRE Trainings for their contribution to the enhancement of this Manual, as well as its advocacy and capacity building. We would also like to acknowledge the efforts of the Local Financial Data Analysis Division under the BLGF LGU Operations Service for coordinating and processing the improvement of this Manual, as well as the invaluable assistance extended by the officials and staff of other oversight agencies in providing us with the information needed to formulate this Manual. BLGF Memorandum Circular No. 016-15 June 19, 2015