Rationalizing the Bureau of Local Government Finance

October 10, 2013 RATIONALIZING THE BUREAU OF LOCAL GOVERNMENT FINANCE WHEREAS, the President is vested with the power of control over the Executive Branch pursuant to Section 17, Article VII of the 1987 Philippine Constitution; WHEREAS, Executive Order (EO) 366, s. 2004, directed the strategic review of the operations and organizations of the Executive Branch and provided options and incentives for government employees who may be affected by the rationalization efforts of the agencies of the Executive Branch; WHEREAS, under Section 74 of the General Provisions of Republic Act No. 10352 or the FY 2013 General Appropriations Act, no organizational units or changes in key positions in any department or agency shall be authorized in their respective organizational structure and staffing pattern and be funded from appropriations under said Act unless otherwise provided by law or directed by the President of the Philippines; WHEREAS, under Section 75 of the same Act, the government is mandated to adopt institutional strengthening measures to improve service delivery and enhance productivity; WHEREAS, the President, through Memorandum Order 190, s. 2005, authorized the Secretary of Budget and Management to approve the Rationalization Plan submitted by the Departments and Agencies of the Executive Branch, including Government-Owned and/or -Controlled Corporation in order to ensure the effective implementation of EO 366. TcSCEa NOW, THEREFORE, I, FLORENCIO B. ABAD, Secretary of the Department of Budget and Management by authority of the President of the Republic of the Philippines, and by virtue of the powers vested in me by law, do hereby approve the Rationalization Plan of the Bureau of Local Government Finance specified herein, and order: SECTION 1. Rationalization. The Bureau of Local Government Finance , hereinafter referred to as the BLGF, is hereby rationalized in accordance with the provisions of EO 366 and its Implementing Rules and Regulations. SECTION 2. Functional Shift. The BLGF, shall continue to assist in the formulation and implementation of policies on local government revenue administration and fund management; exercise administrative and technical supervision and coordination over the treasury and assessment operations of local governments; develop and promote plans and programs for the improvement of resource management systems, collection enforcement mechanisms, and credit utilization schemes at the local levels; and provide consultative services and technical assistance to the local governments and the general public on local taxation, real property assessment and other related matters. It shall strengthen its fiscal supervision over the Local Government Units (LGUs) to improve their revenue collection efforts and attain financial self-sufficiency, to wit: Provision and continuing development of accurate, timely, uniform and comparable local government fiscal and financial information; Establishment of a link between the fiscal planning function of the national and local governments through the coordination of policies and programs; Development of an integrated performance monitoring system to assess the results of the fiscal operations of LGUs; Development of adequate and appropriate incentive mechanisms for LGUs; SETaHC Provision of policy and technical advice to local and national governments on the fundamentals of sound local government finance; Enhancement of uniform financial reporting systems for the different categories of LGUs; Conduct of intensive policy research focusing on local government fiscal and financial problems; and Conduct of trainings and capability-building activities to support LGUs toward achieving efficiency and effectiveness in their fiscal operations. SECTION 3. Structural Shifts. The following structural changes in the BLGF-Central Office are hereby authorized: Institutionalization of Regional Office (RO) IV-B Consolidation of the following : o Local Tax Policy Research and Review Division (Local Finance Policy Enforcement Service), Planning and Policy Research Division and Public Information and Assistance Division (Internal Administration Office), and Plans and Programs Development Division (Special Projects Management Service) into a Policy, Planning, Programming, and Standards Division and its transfer to the Local Fiscal Policy Service o Intelligence Division and Investigation and Prosecution Division into an Internal Affairs Division under the Legal Service aATHIE Merger of the following: o Real Property Assessment Examination Division (Special Projects Management Service) and Local Assessment Operations Division (Local Finance Policy Enforcement Service) into a Local Assessment Operations Division and its transfer to the Local Government Units Operation Service Financial Operations Examination Division and Local Revenue Enforcement Division (Special Projects Management Service), and Local Treasury Operations Division (Local Finance Policy Enforcement Service) into a Local Treasury Operations Division and its transfer to the Local Government Units Operations Service Renaming of the following : From To Office of the Executive Director Office of the Director - Office of the Executive Director Administrative, Financial and Management Service Internal Administration Office - Administrative, Financial and Management Service Financial Management Division - Financial and Management Division Administration Division - Administrative Division Management Information and Data - Information Systems Management Systems Division Division Legal Service Intelligence and Investigation Office - Legal Service Local Fiscal Policy Service Local Finance Policy Enforcement - Local Fiscal Policy Service Service Local Government Loan Review - Local Debt Monitoring and Division Evaluation Division Local Government Units Operations Service Special Projects Management Service - Local Government Units Operations Service Projects Monitoring and Evaluation - Capacity-Building Division Division RO IV-A RO IV - RO IV-A Transfer of the following from: o Legal Division from the Internal Affairs Office to the Legal Service aAHISE o Management Systems Examination Division from the Special Projects Management Service and its renaming into a Local Financial Data Analysis Division Abolition of the Management and Technical Staff under the Office of the Executive Director SECTION 4. Staffing Shifts. The rationalized staffing complement shall consist of 371 positions. SECTION 5. Separability Clause. If any provision in this Rationalization Plan or the application of such provision to any circumstances is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting. SECTION 6. Repealing Clause. All laws, executive issuances, rules and regulations, or parts thereof which are inconsistent with the Rationalization Plan approved herein, are hereby repealed, amended, or modified accordingly. SECTION 7. Effectivity. The Rationalization Plan provided herein shall be effective for implementation upon approval hereof. Approved this 10th day of October, in the year of Our Lord, Two Thousand and Thirteen, in the City of Manila, Philippines. By Authority of the President: (SGD.) FLORENCIO B. ABAD Secretary Published in the Official Gazette, Vol. 110, No. 2, page 209 on January 13, 2014.