IRR of RA 11292 Implementing Rules and Regulations of Republic Act No. 11292 (The Seal of Good Local Governance Act)

December 28, 2020

IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 11292 (THE SEAL OF GOOD LOCAL GOVERNANCE ACT)

WHEREAS, Republic Act No. 11292 entitled "An Act Establishing and Institutionalizing the Seal of Good Local Governance for Local Government Units, and Allocating for this Purpose the Seal of Good Local Governance Fund" was approved on April 12, 2019, and took effect on August 2, 2019, fifteen (15) days following its complete publication in the Official Gazette;

WHEREAS, Section 4 of the Act established a Council of Good Local Governance ("the Council") led by the Department of the Interior and Local Government (DILG), and composed of the Department of Budget and Management (DBM), Department of Finance (DOF), Department of Health (DOH), Department of Social Welfare and Development (DSWD), Department of Education (DepEd), Department of Tourism (DOT), Department of Environment and Natural Resources (DENR), National Economic and Development Authority (NEDA), Office of Civil Defense (OCD), and a representative from the basic sectors nominated by the National Anti-Poverty Commission (NAPC);

WHEREAS, Section 10 mandated the Council to formulate the rules and regulations to implement the provisions of the Act;

NOW THEREFORE, the following rules and regulations are hereby promulgated:

RULE I

General Provisions

SECTION 1. Title. —

These Rules shall be known and cited as the Implementing Rules and Regulations (IRR) of Republic Act No.11292 or the Sealof Good LocalGovernance (SGLG) Actof 2019.

SECTION 2. Purpose. —

This IRR is promulgated to prescribe the procedures and guidelines for the institutionalization and implementation of the SGLG Act of 2019 as a performance assessment and incentive system for local government units (LGUs).

SECTION 3. Declaration of Policy. —

It is hereby declared the policy of the State to recognize the good performance of LGUs in: ensuring transparency and accountability in the use of public funds; preventing and preparing for natural and human-induced disasters; responding to the needs and allowing meaningful participation of vulnerable and marginalized sectors of society; facilitating access to quality education for all; implementing people-oriented health programs; promoting investment and employment; protecting constituency from threats to life and damage to property; safeguarding the integrity of the environment; optimizing tourism and enriching cultural heritage; and engaging the youth for nation-building. In such recognition, the State shall encourage all LGUs to take on greater challenges, ensure outcome-based performance and reward local governments for their efforts in pursuing the general welfare of their constituency and in enforcing existing laws.

SECTION 4. Construction and Interpretation. —

This IRR shall be construed and interpreted in line with the Declaration of Policy as provided in Section 2 of RA 11292. Any doubt in the interpretation of this IRR shall be resolved consistent with the policy of the State to promote LGU performance anchored on transparency, accountability, efficiency and effectiveness in service delivery.

RULE II

Coverage and Scope

SECTION 1. Coverage and Scope. —

The provisions of the Act and this IRR shall apply to all local government units including those in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

RULE III

Performance Assessment System

SECTION 1. Seal of Good Local Governance. —

The Seal of Good Local Governance is a progressive performance assessment system that gives LGUs distinction for their remarkable performance across governance areas. It puts primacy to integrity and good performance as pillars of meaningful local autonomy and development.

The SGLG is an award, incentive, honor and recognition-based program for all LGUs which encourages commitment from LGUs to continuously progress and improve their performance along various governance areas.

SECTION 2. Guiding Principles for the Criteria. —

The SGLG aims for conditions where LGUs:

(a) Uphold the practice of fiscal discipline and sustainability, and transparency and accountability in the use of public funds;

(b) Prevent and prepare for disasters, whether natural or human-induced, in order to strengthen their resilience;

(c) Demonstrate responsiveness to the needs of, and facilitate meaningful engagement with the vulnerable and marginalized sectors of society;

(d) Set-up, implement, and sustain health policies and programs that would strengthen and promote the well-being, healthy lifestyle, and safety of the public, while ensuring that all individuals, especially the vulnerable, have fair opportunities for better health without causing financial hardship through the organization of an integrated healthcare delivery system;

(e) Implement education reforms and programs to support the vision of quality education for all;

(f) Enable pro-competitive policies and interventions, and facilitate ease of doing business, in accordance with the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (RA 11032);

(g) Protect constituents from threats to life and damage to property;

(h) Safeguard and preserve the integrity of the environment through adaptive social responsibility;

(i) Foster the value of sustainable tourism, and nurture culture and heritage; and

(j) Stimulate meaningful participation of youth in local governance and nation-building.

The SGLG shall remain cognizant of the expanding and other emerging areas of local governance and development; underscoring progressive performance while putting premium in the prestige and integrity of the program.

RULE IV

The Council of Good Local Governance

SECTION 1. Creation of the Council of Good Local Governance. —

There is hereby established a Council of Good Local Governance (the "Council"), which shall be composed of the following:

(a) Department of the Interior and Local Government (DILG);

(b) Department of Budget and Management (DBM);

(d) Department of Health (DOH);

(e) Department of Social Welfare and Development (DSWD);

(f) Department of Education (DepEd);

(g) Department of Tourism (DOT);

(h) Department of Environment and Natural Resources (DENR);

(i) National Economic and Development Authority (NEDA);

(j) Office of Civil Defense (OCD); and

(k) One (1) representative from the basic sectors to be nominated by the National Anti-Poverty Commission (NAPC).

The Council shall act as a policy-making and advisory council to ensure proper implementation of the SGLG.

Except for the basic sectors, each national government agency shall be represented by the concerned head of office, or his/her duly authorized representative who must be at least a third-level official. NAPC shall ensure that the basic sectors are consulted and shall come up with its own selection and nomination procedures.

SECTION 2. Powers and Functions of the Council. —

The Council shall have the following functions:

(a) Develop and promulgate the performance indicators that shall serve as standards for evaluating compliance and/or satisfaction of each criteria;

(b) Review and/or revise the performance indicators, consistent with the long- and medium-term development plans of the National Government, policy reforms, and international commitments;

(c) Conduct an evaluation of the impact of this Act on the performance of the LGUs for purposes of: determining the need for enhancing or continuing the SGLG, rolling out SGLG in barangays, and recommending any amendatory legislation. Evaluation shall be every three (3) years after initial implementation;

(d) Review DILG's evaluation results and approve the final SGLG awardees;

(e) Create technical working groups (TWGs) that shall assist the Council in carrying out its functions;

(f) Submit to the President of the Philippines, Senate President and Speaker of the House of Representatives, on annual basis, copies of: performance indicators — both approved by the Council and endorsed by the lead Council member, and impact assessment result conducted pursuant to paragraph (c) of this Section;

(g) Upon two-thirds vote, forfeit the SGLG award and incentives on grounds of misrepresentation, falsification of public documents and the like, provided that due process is given to concerned LGU(s); and

(h) Perform other functions necessary or incidental to properly carry out purposes of this Act.

SECTION 3. Role of the Chairperson. —

The Secretary of the DILG shall act as Chairperson of the Council, and as such, shall:

(a) Oversee operation of the Council, and ensure effective and efficient implementation of SGLG;

(b) Call and preside over all regular and special meetings of the Council;

(d) Invite representative(s) from other national government agencies, private sector and non-government entities, as resource person(s) or as additional council member(s);

(e) Oversee the work of the TWGs and its member-agencies, and ensure submission of required outputs and reports; and

(f) Perform other functions which the Council may deem necessary to implement the objectives of the Act, and these Rules.

The Chairperson can make motion and vote on the forfeiture of the SGLG award and incentives.

Consistent with Rule IV, Section 1, the DILG Secretary may also delegate this role to his/her duly authorized representative.

SECTION 4. Secretariat of the Council. —

There shall be a Secretariat which shall handle technical and administrative activities of the Council. The Secretariat shall also undertake liaising and coordination activities between members and TWGs, and shall document proceedings of Council deliberations.

The Council Secretariat shall be headed by the Bureau of Local Government Supervision (BLGS), and may be composed of other DILG offices.

SECTION 5. Creation of Council's Technical Working Groups (TWGs). —

The Council, in meeting the objectives of the Act, shall create, through a resolution, technical working groups (TWGs) that shall assist in the development of the performance indicators. There shall be an established TWG for each performance area under Rule VI of this IRR.

SECTION 6. Structure of the Technical Working Groups. —

The created TWGs shall be chaired by the Council member having jurisdiction or expertise in a particular area. Membership shall be determined by the TWG Head. Other agencies may request to be a member, subject to the TWG Head's approval.

A representative nominated by NAPC may sit as member in each TWG.

This shall be specified under the resolution as prescribed under Rule IV, Section 5 of this IRR.

SECTION 7. Roles and Responsibilities of the TWGs. —

Each TWG shall perform the following:

(a) Identify, review and recommend indicators and their parameters such as relevance, coverage, benchmark, applicability to specified groups of LGUs, exemptions or considerations, and means of verification;

(b) Develop appropriate data gathering instruments, technical references and other assessment tools, as may be necessary;

(c) Prepare the performance framework, corresponding menu of performance indicators developed, and other periodic reports required by the Council; and

(d) Design intervention packages that would enhance capacity of LGUs which did not qualify for the SGLG award.

The development of indicators should reflect outcomes that are performance- and evidence-based, encouraging outputs that reflect concrete benefits to the community in terms of policy, rules, regulations, behavior, competencies, knowledge, or attitude.

The various TWGs shall also use the assessment results and operational concerns consolidated by the Secretariat, as reference in their review of indicators.

All performance indicators developed and recommended by the TWG shall be submitted, through the concerned TWG chair, to the Council for approval.

SECTION 8. Creation of Special TWG. —

Through a resolution, a special technical working group may be created to assist the Council in evaluating the impact of this Act on the performance of LGUs for the following purposes:

(a) Enhancing SGLG performance framework and assessment;

(b) Feasibility of rolling out the SGLG in barangays;

(d) Determining SGLG monetary incentives and monitoring the utilization of the funds; and

(e) Determining technical assistance for LGUs.

SECTION 9. Residual Powers of the Council and its Members. —

The Council shall exercise such other powers and functions, not prohibited by any law or policy, in order to carry out the provisions of the Act.

The Council members shall, under their individual mandates, exercise powers necessary to contribute to the achievement of the objectives of the SGLG.

SECTION 10. Consultation with Local Government Leagues and Other Stakeholders. —

There shall be a consultation with the representatives of the Leagues of Provinces, League of Cities, League of Municipalities, and the Liga ng mga Barangay — whenever appropriate, and other stakeholders, as to the menu of performance indicators that will be adopted in an SGLG cycle. The leagues and other stakeholders may also be invited in Council meetings.

RULE V

Role of DILG as Implementing Agency

SECTION 1. Assessment and Evaluation of LGUs. —

Pursuant to Section 6 of Republic Act No. 11292, the DILG shall be the implementing agency. It shall take the lead in the assessment and evaluation of each LGU relative to its compliance with the Criteria to include, among others, the following: implementation monitoring; maintaining online data gathering platform and LGU performance database; and announcement of results including conferment of SGLG awardees.

As the implementing agency, the DILG shall also ensure that, in the development of Criteria and operational guidelines, other stakeholders namely, non-government organizations (NGOs)/civil society organizations (CSOs), local research institutes (LRIs), and local government leagues, are consulted.

To sustain a balanced and impartial perspective in the conduct of assessment, participation of NGO/CSO and LRIs shall be ensured. NAPC may propose areas of engagement, and tap its regional counterparts to support assessment activities.

The DILG-BLGS shall oversee the SGLG assessment in the provinces, cities and municipalities, while the DILG-NBOO shall oversee the assessment in the barangays. The designated DILG office shall recommend to the Chairperson, the assessment and other operational procedures to be adopted for an SGLG cycle which shall be contained in a DILG issuance.

Request(s) for results clarification of an assessed LGU shall be acted upon by concerned DILG regional office. Matter(s) raised outside policy consideration shall be resolved by the Council.

SECTION 2. Administering and Managing the SGLG Incentive Fund. —

The DILG-BLGD shall assist the Chairperson in managing and administering the SGLG Incentive Fund, provided for in Section 11 of the Act, with the supervision of the Council. It shall also prepare a proposal relative to the monetary incentives for LGUs based on the number of awardees, and submit the same for the Council's approval.

Moreover, the DILG-BLGD shall facilitate the release of the SGLG Incentive Fund to eligible LGUs and ensure proper utilization of the Fund.

SECTION 3. Other Roles. —

The DILG-BLGD shall take the lead in crafting a resource mobilization plan to help finance operations, and expand monetary and non-monetary incentives of SGLG by promoting partnerships and linkages with non-government entities.

The DILG, as implementing agency, shall develop a communication plan that will serve as the roadmap in conveying the strategic value of the SGLG program.

In order to preserve the Seal's brand identity and its prestige, it shall also be the responsibility of the DILG to regulate the use of logos, markers and other visible elements of the brand. Only the said agency is authorized to reproduce SGLG brand elements. This shall be contained in a policy to be issued by the same.

RULE VI

Criteria

Pursuant to Section 7 of the Act, areas in the criteria are:

SECTION 1. Good Fiscal or Financial Administration or Financial Sustainability. —

This refers to the condition where an LGU demonstrates positive and stable economic performance, and maintains, preserves and mandatorily upholds the practice of fiscal discipline, sustainability, accountability and transparency, by adhering to pertinent budgeting laws, rules, and regulations, best practices in public financial management, generally-accepted and recognized accounting and auditing standards, and full disclosure policy. Indicators shall include, but not limited to:

(a) Issuance of an unqualified or qualified opinion on the financial statements of an LGU by the Commission on Audit (COA) in the immediately preceding year, together with the Agency Action Plan and Status of Implementation (AAPSI) on the audit observations and recommendations;

(b) Full, strict, and exacting compliance with the Full Disclosure Policy (FDP) of local budget and finances, bids and public offerings;

(c) Posting of financial documents required to be posted in the FDP portal in the local government's website, including the submission of reports under LGU Integrated Financial Tools (LIFT) System;

(d) Local revenue collection growth; and

(e) Utilization of the twenty-percent (20%) component of the Internal Revenue Allotment for local development projects.

SECTION 2. Disaster Preparedness. —

This refers to an LGU's preparedness for any disaster or natural or human-made calamity, by adopting relevant plans, taking proactive actions, and building its capacity to respond effectively to emergencies and disasters, when needed. Indicators shall include, but not limited to:

(a) Having responsive structures, plans and systems in place for disaster preparedness, as prescribed in national government guidelines like the DILG's LISTO manual;

(b) Availability of updated Comprehensive Land Use Plan and comprehensive development plan in the case of cities and municipalities, or Provincial Development and Physical Framework Plan, Disaster Risk Reduction and Management Plan, Contingency Plans, and Local Climate Change Action Plan;

(c) Availability of working early warning and evacuation alert system, identified evacuation centers, emergency transportation facilities, relief operation equipment and tools, medical services, registration and security measures, and standard operating procedures in the event of disaster or calamity;

(d) Contingency plans harmonized with those of adjacent LGUs to ensure coordinated efforts in the event of major emergencies and disasters; and

(e) Being an awardee of the National Gawad KALASAG for Best Local Disaster Risk Reduction and Management Council.

SECTION 3. Social Protection and Sensitivity Program. —

This refers to an LGU's sensitivity and responsiveness to the needs of its constituents, recognizing and upholding the rights and privileges particularly those belonging to the vulnerable or disadvantaged sectors, such as, but not limited to, women, children, indigenous people, elderly, persons with disability (PWD), urban poor, and informal settlers. Indicators shall include, but not limited to:

(a) Providing access to justice, particularly in cases of violence against women and children;

(b) Providing access for PWDs, senior citizens and pregnant women to social services;

(c) Enhancing mobility for PWDs in public infrastructure like local government center and hospitals in accordance with the Accessibility Law;

(d) Compliance with the mandatory representation of indigenous people in the sanggunian with representative accorded with regular privileges and emoluments of a sanggunian member, in compliance with RA 8371 or the Indigenous Peoples Rights Act of 1997;

(e) Presence of at least one (1) accredited LGU-managed residential care facility for the vulnerable sectors; and

(f) NGO representation in the local development council and other special bodies consistent with the pertinent provisions of the Local Government Code.

SECTION 4. Health Compliance and Responsiveness. —

This refers to the LGU's capability to advocate, effectively implement and deliver health services and information systems, as well as, pursue evidenced-based health promotion and protection policies scientifically proven and accepted to advance population health and individual well-being, reduce the prevalence of non-communicable diseases and its risk factors, lower the incidence of infectious diseases, address mental health issues and improve health status throughout the life course. Indicators shall include, but not limited to:

(a) Ensuring access to nutritious, safe and affordable food;

(b) Regularly conducting physical activities in communities and schools;

(c) Strictly enforcing laws and ordinances that regulate tobacco sale and use, harmful alcohol consumption, and use of illicit drugs;

(d) Providing access to safe water and sanitation;

(e) Implementing programs for immunization, prevention and control of communicable diseases, and health emergency management, subject to policies and standards prescribed by the DOH, FDA and other competent authorities over matters concerning health compliance and responsiveness;

(f) Ensuring access to essential health commodities and primary health care including prevention programs for hypertension, diabetes, cancer, and other non-communicable diseases, and programs that promote mental health; and

(g) Establishing local surveillance and epidemiology systems to monitor health service delivery.

SECTION 5. Programs for Sustainable Education. —

This refers to the initiatives of an LGU to institute education reforms and programs, provide equal access to quality education, promote lifelong learning opportunities for all, foster sports development and instill leadership and patriotism among the youth, as demonstrated by positive changes in the behavior and performance of individual citizens and the community as a whole. Indicators shall include, but not limited to:

(a) Positive results produced by Local School Board Policies and Programs, such as: (i) increased participation rate of students; (ii) decreased number of drop-outs as well as out-of-school youths; (iii) increase in cohort survival rates; (iv) increase in achievement scores as measured by the national tests or assessment tools; and (v) establishment of child development centers; and

(b) Support to special education and the alternative learning system and parent effectiveness service program.

SECTION 6. Business Friendliness and Competitiveness. —

This refers to an LGU's unconventional initiative in encouraging local investment, together with local business enterprises and the working sector, through the adoption of policies, programs, systems, structures and/or local legislation to attract and create investment opportunities, and promote a business climate conducive to sustainable business growth. Indicators shall include, but not limited to:

(a) Adoption of streamlined process in doing business in the LGUs;

(b) Establishment of updated local economic development (LED) data;

(d) Existence of an updated Citizen's Charter;

(e) Availability of an updated Local Investment Incentive Code; and

(f) Good performance in business promotion based on the result of Business Friendliness or Competitiveness Assessment by the Philippine Chamber of Commerce and Industry or the National Competitiveness Council.

SECTION 7. Safety, Peace and Order. —

This refers to a condition where an LGU establishes good and respectable performance in terms of maintaining peace and order in the community as demonstrated by reduced crime rate, effective anti-illegal drugs campaign, and efficient traffic management, among others, through the implementation of activities, programs and policies, and the appropriate provision of support mechanisms to ensure the safety and protection of its constituencies from injuries and unnecessary threats to life, security and property. Indicators shall include, but not limited to:

(a) Adopting Peace and Order and Public Safety Plan;

(b) Providing logistical or financial support to the local police;

(d) Establishing a functional local Anti-Drug Abuse Council; and

(e) Establishing and implementing a community-oriented policing mechanism.

SECTION 8. Environmental Management. —

This refers to an LGU's initiative to institute policies and programs that consistently and significantly preserve and protect the integrity of the environment with primary focus on solid waste management and ecological balance, as well as mitigation and adaptation to climate change. Indicators shall include, but not limited to:

(a) Advancing local policy and programs of action on Environmental Impact Assessment;

(b) Promoting social awareness and social responsibility programs;

(d) Complying with at least the minimum standards set by the provisions of Republic Act No. 9003, or the Ecological Solid Waste Management Act of 2000;

(e) Establishing a material recovery-facility or an existing partnership with an entity with facilities that may be used for such purpose;

(f) Having access to a sanitary landfill or alternative technology;

(g) Maintaining an organized local Solid Waste Management Board; and

(h) Institutionalizing policies, programs, systems, structures and/or local legislation in order to support and promote environmental protection in all levels of human transaction.

SECTION 9. Tourism, Heritage Development, Culture and Arts. —

This refers to an LGU's ability to promote and protect Philippine identity through local heritage and culture, or local legacy, in terms of preserving the cultural, historical and indigenous significance of the community, marketing the characteristics which the LGU is known or recognized for, and attracting foreign and local visitors and tourists to the locality. Indicators shall include, but not limited to:

(a) Establishment of local tourism systems and structures: council, tourism officer, information and assistance center, statistics database/tracking system for tourism data, and tourism development plan;

(b) Presence of a local council for the promotion of culture and the arts;

(d) Existence of an updated cultural property inventory in the LGU.

SECTION 10. Youth Development. —

This refers to an LGU's ability to promote and establish adequate, effective, responsive and enabling mechanisms and support systems that will ensure the meaningful participation of the youth in local governance and nation-building. Indicators shall include, but not limited to:

(a) Adopting a local youth development program;

(b) Establishing a local youth development council;

(d) Instituting policies, programs and systems in order to support and promote the vital role of youth in local governance.

SECTION 11. Test of Results Acceptability by the Council. —

Additional local governance parameters affecting LGUs shall form part of the criteria for final deliberation by the Council. These shall include but are not limited to: (a) institutional integrity (e.g., non-involvement to cases subjected to disciplinary actions); (b) effectiveness of disaster-preparedness (e.g., reports on casualties and damages; and (c) other parameters deemed highly relevant that are identified during the whole process.

SECTION 12. Assessment Scheme. —

Pursuant to Section 5, paragraph (a) of the Act, the Council, in recognition of various LGU capabilities and peculiarities, shall set the specific assessment scheme that will be adopted in an SGLG cycle. The scheme currently being implemented that is binary, may be superseded by a rating/indexing scheme or a combination of both, upon the recommendation of the TWGs.

SECTION 13. Modification of the SGLG Criteria. —

The foregoing criteria may be modified by the Council to align with the thrusts of the National Government and attune them with the changing times. To ensure this, an impact evaluation shall be conducted every three (3) years, while mandatory review of the criteria is every year.

Criteria modification may refer to integrating a new governance area, introducing new indicator(s) within an existing area(s), upgrading existing indicator(s), and/or re-organizing indicator(s) and area(s).

RULE VII

Requisites for SGLG Qualification

SECTION 1. Requisites to Qualify for SGLG. —

An LGU, which, according to the assessment of the DILG, complies, qualifies, and passes all assessment criteria as provided under Rule VI of this rules and regulations, and all other criteria as adopted by the Council pursuant to Rule VI, Section 11 of these rules, shall be conferred and awarded the SGLG and granted the corresponding incentive as provided under Rule VIII of this IRR.

SECTION 2. Rules of Interpretation. —

In order to ensure the prestige of the SGLG, the interpretation of the provisions of this IRR, shall be strictly construed against the LGUs. In case of doubt, it shall be treated as failure to qualify. It shall always be the burden of an LGU to show that it qualifies for the SGLG.

SECTION 3. Appeals. —

As the implementing agency, DILG shall provide for a formal mechanism whereby appeals for reconsideration are to be handled. Said mechanism shall accept, review and respond to the affected party.

Procedural details and other guidelines in this regard shall be contained in a policy to be issued by the DILG.

RULE VIII

Funding SGLG Operations

SECTION 1. SGLG Operating Fund. —

As provided for in Section 16 of the SGLG Act, the activities and operational expenses, other than the incentive payouts, related to the implementation of said Act shall be initially funded from the DILG's Performance Challenge Fund. Thereafter, the DILG shall include in its annual budget to be incorporated in the General Appropriations Act (GAA), the item for the SGLG operating fund in the amount equivalent to two percent (2%) of the SGLG Fund. The DILG, as the implementing agency, may recommend to increase the percentage of aforementioned item.

RULE IX

Incentives for the SGLG

SECTION 1. The SGLG Incentive Fund. —

Pursuant to Section 11 of the SGLG Act of 2019, a special account under the GAA is hereby created as the "SGLG Fund." The SGLG Fund shall be utilized only to pay out the incentives granted to LGUs that qualify for the SGLG to be contained in the guidelines to be issued by the Council.

The Council shall have the authority to determine the monetary incentives for LGUs based on the number of awardees. It shall also have the authority to re-evaluate and increase the amount of SGLG incentive to be awarded to LGUs: Provided, That, the increase shall be subject to the sufficiency of the SGLG Fund at the time the increment is implemented.

SECTION 2. Management of the Fund. —

Pursuant to Section 14 of the Act, the Fund shall be managed and administered by the DILG with the supervision of the Council and in close coordination with the DBM. Appropriation to replenish the amount paid out from the Fund during the year and/or to augment the same shall be proposed by, and included in the budget of the DILG under the GAA.

SECTION 3. Utilization and Limitations on the Incentives. —

Use of incentives paid out of the SGLG Fund shall be governed by the policies covering the utilization of the twenty percent (20%) of the annual Internal Revenue Allotment (IRA) for local development projects, the Annual Investment Program (AIP) and the Local Development Investment Program (LDIP).

Procedural details and other guidelines on the use and/or non-disbursement of the SGLG Incentive Fund shall be contained in a policy to be issued by the DILG.

RULE X

Forfeiture of the Award and Incentives

SECTION 1. Forfeiture of the Award and Incentives. —

The SGLG does not only underscore good performance but equally important, it puts premium on integrity in local governance. Falsification of submitted public documents shall be a ground for forfeiture of the award and incentives upon two-thirds vote of the Council. The same shall be subjected to, and/or endorsed for disciplinary actions of appropriate authority.

The Chairperson, upon the concurrence of the Council, may direct creation of special TWG that shall develop procedural guidelines in addressing actions/complaints that may be grounds for the forfeiture of the award and incentives.

RULE XI

SGLG Assessment Results

SGLG assessment results shall be communicated to local governments through the issuance of the Governance Assessment Report (GAR) by the DILG.

SECTION 1. Conduct of Utilization Conference. —

At the end of each assessment cycle, LGUs shall conduct a utilization conference to discuss results contained in the GAR and come up with corrective actions to address the gaps identified therein. This conference can also be the venue wherein the LGU can raise concerns and recommendations.

Each DILG Regional Office shall submit to the Council, through the Secretariat, a report summarizing concerns and recommendations raised by the LGUs that will serve as inputs in the enhancement of SGLG implementation.

SECTION 2. Technical Assistance for Capacity Building. —

The national government agencies concerned shall provide technical assistance and/or mechanism to enhance capacity-building on identified gaps of LGUs which have not qualified for the SGLG award. In this connection, each TWG shall prepare menu of appropriate interventions that would enhance capacity of these LGUs.

SECTION 3. Linking SGLG Results to Intervention Packages. —

The national government agencies shall use SGLG assessment results as reference, whenever appropriate, in identifying beneficiaries of performance-based incentives and other capacity development program.

Other government entities like the Congress and COA may also be furnished with copies of SGLG assessment results to serve as inputs to policy amendments.

RULE XII

Non-Infringement of Local Government Authority

SECTION 1. Guarantee of Local Government Autonomy. —

The autonomy of LGUs shall be respected at all times. Nothing in the Act nor in this IRR shall be interpreted as limiting the autonomy of LGUs to establish policies and pursue programs and projects designed not only to qualify for the SGLG award, but also, to ensure the enjoyment of their constituency the right to life, liberty, property, health, education, balanced and healthful ecology, among others, in the exercise of their power under the general welfare clause.

RULE XIII

Final Provisions

SECTION 1. Separability Clause. —

Should any part of or provision in this IRR, or application of such provision to any circumstance, is declared unconstitutional or invalid, all other provisions not affected thereby shall remain in full force and effect.

SECTION 2. Repealing Clause. —

All issuances inconsistent with these Rules are hereby repealed or modified accordingly.

SECTION 3. Amendment. —

In the implementation of this IRR, the Council may introduce modification(s) thereto through the amendment of its specific provisions as the need arises.

SECTION 4. Effectivity. —

This IRR shall take effect fifteen (15) days after its complete publication in the Official Gazette or in a newspaper of general circulation.

Approved and signed this 28th day of December, 2020 in Quezon City, Philippines.

(SGD.) EDUARDO M. AÑOSecretary, Department of the Interior and Local Government and Chairperson, Council of Good Local Governance