1.0 PURPOSES

This JMC is being issued to:

1.1 Adopt a more comprehensive format for the SRE of LGUs, which can serve as  a  source/reference  for  the  preparation  of  other  reports  required  by  the oversight agencies concerned from the LGUs;

1.2 Update the classification and treatment of accounts to be used in preparing the SRE of LGUs; and

1.3 Delineate the roles and responsibilities of the DBM, DOF, DILG, and the local officials concerned, particularly the local treasurers, assessors, budget officers and accountants, in the preparation of the LGU fiscal data.

2.0 GENERAL GUIDELINES

2.1 All financial statements and reports of LGUs shall be prepared consistent with the Revised Chart of Accounts for LGUs as prescribed under Commission on Audit Circular No. 2015-009 dated December 1, 2015.^[1]

2.2 For purposes of preparing the SRE of LGUs, the reporting formats prescribed under Annexes* A and B hereof, which provide for the classification and grouping of accounts, as well as the years for which data should be presented, shall be adopted by the LGUs.

2.3 The SRE covering the actual, current and budget years shall be submitted by the LGUs to the DOF-BLGF, through the LGU Integrated Financial Tools (LIFT), strictly within the timelines that may be prescribed in the advisory to be issued by the DOF-BLGF for the purpose.

2.4 The reporting systems, manuals, responsibilities and mechanisms for coordination in the preparation of the SRE of LGUs shall operationalize the provisions  under  DILG-National  Economic  and  Development  Authority-DBM, DOF JMC No. 1, Series of 2016, dated November 18, 2016^[2]

3.0 ROLES AND RESPONSIBILITIES

3.1 DOF

3.1.1 The DOF-BLGF ROs shall:

3.1.1.1 Review and monitor the SRE reports and the Quarterly Report on Real Property Assessment (QRRPA) submitted by the LGUs and ensure the accuracy of the said reports;

3.1.1.2 Validate the propriety and accuracy of the SRE of LGUs and the QRRPA, and ensure that the ending balance of the previous year is the beginning  balance  of  the  succeeding  year.  If  there  are  adjustments, proper disclosure shall be made on the nature/details of the adjustment;

3.1.1.3 Ascertain the timely submission of reports by the LGUs, particularly by the local treasurers; and

3.1.1.4 Provide technical assistance in the preparation of the SRE of LGUs and the QRRPA, when necessary.

3.1.2 The DOF-BLGF Central Office (CO) shall:

3.1.2.1 Monitor LGU financial performance and provide the necessary financial advice to LGUs;

3.1.2.2 Prepare the consolidated SRE reports and QRRPA and other reports required by various oversight agencies and stakeholders;

3.1.2.3 Conduct financial analysis of the SRE of LGUs on a macro level;

3.1.2.4 Submit to the DBM CO the SRE of LGUs covering the actual, current and budget years not later than June 7 of the current fiscal year;

3.1.2.5  Maintain  the  SRE  System  and  database,  and  other  systems linked to the LIFT;

3.1.2.6 Initiate improvements in the SRE System and the LIFT; and

3.1.2.7 Provide technical assistance in the preparation of the SRE of
LGUs and the QRRPA, when necessary.

3.2 DBM

3.2.1 The DBM ROs shall:

3.2.1.1 Enjoin the local budget officers to provide the following data to complete the SRE for LGUs using the LIFT:

a. project expenditures for the current year; and b. proposed expenditures for the budget year

3.2.1.2 Encourage the local budget officers to optimize the use of the LIFT for purposes of expenditure management, decision making, policy formulation and reporting by providing the data on actual obligations and using the expenditure tagging module in the LIFT;

3.2.1.3 Monitor, in coordination with the DOF-BLGF ROs, compliance with the deadlines for the preparation and submission of the SRE for LGUs; and

3.2.1.4 Provide technical assistance in the preparation of the SRE of LGUs, when necessary.

3.2.2 The DBM CO shall:

3.2.2.1 Submit to the DOF-BLGF CO the computed Internal Revenue Allotment shares of the LGUs for the actual, current and budget years not later than May 31 of the current year; and

3.2.2.2 Based on the reports submitted by the DOF-BLGF CO, prepare the consolidated SRE of LGUs to be reflected in Table F of the Budget of Expenditures and Sources of Financing of the national government for the budget year.

3.3 DILG

3.3.1 The DILG shall facilitate compliance of the LGUs with the preparation and submission of their respective SREs as stipulated in this JMC.

3.4 LGUs

3.4.1 All local chief executives shall ensure the accuracy and timely submission of the QRRPA and the SRE report.

3.4.2 The local accountants shall:

3.4.2.1 Jointly with the treasurer, certify the actual receipts and expenditures

3.4.2.2 Provide the local treasurer with the necessary financial data and reports necessary to complete the SRE, consistent with accounting records and reports; and

3.4.2.3 For city and municipal accountant, consolidate and submit to the DOF-BLGF, through the LIFT, the financial statements of their respective component barangays.

3.4.3 The local budget officers shall:

3.4.3.1 Prepare, in coordination with the local treasurers and local accountants, the estimated receipts and expenditures for the current year;

3.4.3.2 Encode in the LIFT the projected expenditures for the: current year based on existing appropriations; and budget year based on duly approved local development investment programs; and

3.4.3.3 For the provincial budget officers, review the data provided by the local budget officers of their component cities and municipalities in the LIFT, and render technical assistance when necessary.

3.4.4 The local treasurers shall:

3.4.4.1  Submit  to  the  DOF-BLGF,  through  the  LIFT,  their  respective SRE;

3.4.4.2 Encode in the LIFT the projected income and income target for the current and budget years;
 
3.4.4.3 For the provincial treasurers, review the data provided by the local treasurers of their component municipalities in the LIFT, and render technical assistance when necessary; and

3.4.4.4 For the barangay treasurers, prepare the Barangay Financial
Report consistent with the template prescribed under Annex B hereof.

3.4.5 The local assessors shall:

3.4.5.1 Submit to the DOF-BLGF, through the QRRPA Module in the LIFT, the QRRPA report; and

3.4.5.2 For the provincial assessor, review the data provided by the municipal and city assessor to ensure consistency with the records of Provincial Assessor's Office.

4.0 REPEALING CLAUSE

All issuances by the DBM, DOF and DILG that are inconsistent or contrary to the provisions of this JMC are hereby repealed and modified accordingly. Any future issuance(s) by the said agencies in relation to the SRE of LGUs shall be made in accordance with this JMC.

5.0 CASES FOR RESOLUTION

Cases not covered by this JMC shall be referred to the DOF-BLGF for resolution by the DBM, DOF and DILG.

^[1] Prescribing the Revised Chart of Accounts for Local Government Units.

^[2] Updated Guidelines on the Harmonization of Local Planning, Investment Programming, Resource   Mobilization,   Budgeting,   Expenditure,   Management,   and   Performance
Monitoring and Coordination in Fiscal Oversight.

*Text Available at Office of the National Administrative Register, U.P. Law Complex, U.P Diliman, Quezon City.