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DEPARTMENT OF FINANCE Roxas Boulevard Corer Pablo 02arnpo, Sr. Street Manila 1004

DEPARTMENT ORDER NO. 10-0P March 26, 2008 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. Chapter 5.

Chapter 6.

Roles, Duties and Responsibilities Treasurers Other Roles of the Local Treasurer

Bonding of Local Treasurers Accountable Officers

and

of

Local

Other LGU

A,

I ,,

BOOK TWO. Chapter 1. Chapter 2. Chapter 3.

BOOK THREE. Chapter 1. Chapter 2. Chapter 3. Chapter 4. Chapter 5. BOOK FOUR.

RECEIPT AND COLLECTION OF LOCAL INCOME, REVENUE AND OTHER FUND SOURCES Types of Local Income and Revenues Collected by Local Government Units Collection of Revenue and Other Receipts Examination of Books of Accounts and Pertinent Records of Businesses by the Local Treasurer EXPENDITURES AND DISBURSEMENTS Concept of Funds Concept of Appropriations, Allotment, Obligation/ Expenditures Disbursements of Local Funds Barangay Appropriations, Commitments and Disbursements Sangguniang Kabataan (SK) Budget 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.

Chapter 1. Chapter 2. Chapter 3. Chapter 4. Chapter 5. BOOK SIX.

DETAILED PROCEDURES ON REAL PROPERTY TAX, BUSINESS TAX, FEES AND CHARGES AND OTHER RESOURCE MOBILIZATION Real Property Taxation Business and Other Local Taxes Fees and Charges Government Enterprise Operations Credit Financing and Alternative Sources of Funds 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.

MARGARIT Secretary

005442

ANNEX 7A °

Updated Masterlist of Taxpayers as to Type of Ownership (date) As of Type of Ownership:

[ ] Individual [ ] Corporation [ ] Partnership

Business Permit Business Name No.

Taxpayers Name

Note: Frequency of Transmission:

Taxpayer Identification No. (TIN)

Branch Code

[ ] Estate Business Address

[ ] Trust Nature of Gross Business / Sales/Receipts Activity (Industry of the Preceding Classification) Year

Yearly not later than April 15 of the current year for LGUs Yearly not later than June 30 of the current year for BIR

Status of Business (New/Renew)

Date of Registration for New Registrants

ANNEX "8"

Masterlist of Retired Businesses (date) As of Taxpayer Business Permit Business Name Taxpayer's Name Identification No. No(TIN)

Note: Frequency of Transmission:

Branch Code

Business Address

Nature of Business / Activity (Industry Classification)

Yearly not later than April 15 of the current year for LGUs Yearly not later than June 30 of the current year for BIR

0

Date of Retirement

Type of Ownership (e.g Indiv/Corp)

ANNEX"C"

List of Existing Tax Declarations of Real Properties Issues! / Assessment Roll As of (date) Tax Declaration No.

Effectivity

Note: Frequency of Transmission:

Property Index No.

Name of Declared Owner

Address

TCT No.

Assessor's Lot/Block No.

As of December 31, 2007 and subsequent quarterly updates

Cadastral Lot No.

Location Kind of (Street/Barang Property ay/City or (Land/Building Municipality or Province) Improvement)

Classification (Residential /Commercial /Industrial /Agricultural, etc.)

Fair Market Value