BCLTE (Local Treasury Competency) cheat sheet

The barangay, municipality, city, and province each maintain a separate local treasury; the provincial treasurer does not hold city or municipal funds, except where the LGC expressly assigns a shared function.

Local government units (LGUs) have taxing and revenue-raising power under Article X, Sec. 5 of the 1987 Constitution and Book II of RA 7160, subject to limitations Congress may set.

The local treasury's core duties: collect, custody, and disburse local funds; keep accounts and records; and report collections and balances to the local chief executive and sanggunian.

Only the local treasurer, or an officer duly designated in writing, may receive money for the LGU; all receipts must be evidenced by an official pre-numbered receipt.

Local funds are classified as General Fund, Special Education Fund (SEF), Trust Fund, and Special Accounts; each has distinct rules on use and custody.

The SEF is funded by the additional 1% real property tax and a share of the 1% on idle lands; it is disbursed only for purposes authorized by the Local School Board.

The barangay treasurer is appointed by the punong barangay with the concurrence of the sangguniang barangay; the municipal/city/provincial treasurer is appointed by the local chief executive with sanggunian concurrence.

The treasurer is bonded under the Fidelity Bonding Program; the bond must be in force before the officer assumes custody of funds and property.

RA 7160 (Local Government Code of 1991) Book II governs local finance; RA 7160 Sec. 470-471 define the treasurer's appointment, powers, and duties.

RA 6713 (Code of Conduct and Ethical Standards) and RA 3019 (Anti-Graft and Corrupt Practices Act) apply to all local treasury personnel.

COA Circular 92-382 and the Government Accounting Manual (GAM) for LGUs set the accounting and reporting rules for local funds.

RA 9480 grants a one-time tax amnesty on delinquent real property taxes; RA 12001 (Real Property Valuation and Assessment Reform Act) governs valuation and assessment.

RA 11032 (Ease of Doing Business Act) requires LGUs to observe prescribed processing times and to publish a Citizen's Charter for treasury transactions.

The Local Government Code requires the treasurer to render a monthly report of actual receipts and expenditures to the sanggunian and the local chief executive within 10 days after the close of each month.

RA 9184 (Government Procurement Reform Act) governs disbursements arising from procurement; RA 9184's IRR prescribes the documentary requirements for payment.

COA Circular 2019-001 and the GAM for LGUs prescribe the use of the Unified Accounts Code Structure (UACS) in all local financial transactions.

Cash programming projects the LGU's monthly cash inflows (collections, shares, transfers) against outflows (payroll, obligations, debt service) to avoid idle cash or shortfalls.

The cash program is prepared by the treasurer and approved by the local chief executive; it covers at least the current budget year and is updated monthly.

The Local Government Code requires the treasurer to submit a cash program to the sanggunian and the local chief executive within 30 days after the start of each fiscal year.

Idle cash may be deposited in time deposits with authorized depository banks, subject to COA rules and sanggunian authorization; the term must not exceed the period the funds are not needed.

The LGU must maintain a minimum cash balance sufficient to cover at least one month of operating requirements; the exact level is set by local fiscal policy.

Collections must be deposited intact daily, or at least once a week where the amount is small, to the authorized depository bank; no disbursement may be made from collections.

The treasurer maintains a Cash Book and a Daily Cash Position Report; the report is reconciled with the bank statement each month.

Cash advances for payroll and petty cash are subject to liquidation within the period prescribed by COA (generally 5 days for petty cash and 15 days for payroll, unless extended).

All collections must be covered by an official receipt (COA Form 51) or a revenue collector's receipt; the receipt must be issued at the time of payment.

Collections are deposited intact to the LGU's authorized depository bank account; no portion may be used for disbursements, even for authorized expenses.

The treasurer remits the LGU's share of national taxes (IRA/NTA) and other shares to the proper account; the LGU's share of national taxes is released monthly by the DBM.

Real property tax collection is governed by RA 7160 Sec. 250-256; the treasurer issues a real property tax receipt and updates the assessment roll.

The treasurer must deposit collections within the next banking day after receipt; where no bank exists in the locality, deposit is made with the municipal/city treasurer or the nearest bank.

The accountable officer must issue a certification of deposit and keep a record of all deposits; the deposit slip and the official receipt must be reconciled daily.

The treasurer's remittance of collections to the general fund or SEF must be supported by a report of collections and deposits (RCD) and a certificate of deposit.

Failure to remit or deposit collections on time is a ground for administrative and criminal liability under RA 3019 and the Revised Penal Code (malversation).

Disbursement requires a valid obligation (purchase order, contract, or payroll) and a disbursement voucher (DV) approved by the local chief executive or authorized official.

The DV must be supported by the original invoice, official receipt, delivery receipt, and the certificate of acceptance/inspection.

The treasurer prepares the check or ADA (Advice to Debit Account) only after the accountant certifies the availability of funds and the budget officer certifies the appropriation.

Checks must be drawn on the LGU's depository bank and signed by the local chief executive and the treasurer (or their authorized signatories); two signatures are required.

An ADA is used when the LGU maintains an account with the Land Bank of the Philippines; the LGU issues an ADA to the bank, which debits the LGU's account and credits the payee.

Checks must be released only to the payee or an authorized representative; the payee must present identification and sign the disbursement voucher.

Stale checks (generally 6 months from date) must be cancelled and replaced; the treasurer must maintain a check register and reconcile it with the bank statement.

The treasurer must report unclaimed checks and remit the amount to the Treasurer of the Philippines after the prescribed period under the Unclaimed Balances Law (Act No. 3936).

The treasurer is the accountable officer for all funds and property in the local treasury; accountability begins upon assumption of office and is discharged only by proper turn-over.

A turn-over of accountability is required when the treasurer is transferred, resigns, or is separated; the turn-over must be documented and witnessed by the COA auditor.

Accountable forms (official receipts, checks, treasury warrants) must be kept in a safe and recorded in a logbook; unused forms are inventoried and reported.

The treasurer must maintain a record of all accountable forms and their serial numbers; lost or destroyed forms must be reported to COA immediately.

Property in the treasurer's custody must be recorded in the property ledger and inventoried annually; the inventory is submitted to COA.

The treasurer may be held liable for the loss of funds or property due to negligence; the liability is personal and may be enforced through a fidelity bond claim.

The COA auditor conducts an annual audit of the treasurer's accounts and issues an audit report; the treasurer must submit all records and documents upon request.

The treasurer must secure the treasury premises and maintain a vault with controlled access; the combination must be changed upon change of personnel.

The treasurer submits a Monthly Report of Collections and Deposits (RCD) to the accountant, the local chief executive, and the sanggunian.

The accountant prepares the Monthly Trial Balance and the Financial Statements (Statement of Financial Position, Statement of Financial Performance, Statement of Cash Flows, Statement of Changes in Net Assets).

The annual financial statements must be submitted to COA within 30 days after the end of the fiscal year, or as prescribed by COA.

Bank reconciliation is performed monthly; the treasurer reconciles the Cash Book balance with the bank statement and reports discrepancies to the accountant.

The LGU's financial statements must be prepared using the GAM for LGUs and the UACS; the reports are consolidated by the accountant and submitted to COA.

The Statement of Cash Flows reports cash receipts and payments classified into operating, investing, and financing activities.

The treasurer must reconcile the cash balance with the accountant's general ledger; any variance must be investigated and adjusted before the financial statements are finalized.

The LGU's Annual Budget and the Statement of Appropriations, Allotments, Obligations, Disbursements, and Balances (SAAODB) must be reported to COA and the DBM.

Internal control has five components: control environment, risk assessment, control activities, information and communication, and monitoring.

Segregation of duties: the officer who authorizes a transaction must not be the same officer who records or custodies the related asset.

The COA auditor performs a pre-audit of disbursements and a post-audit of accounts; the auditor's findings are reported to the local chief executive and the sanggunian.

The COA's three audit approaches: financial audit, compliance audit, and performance audit.

The Code of Conduct (RA 6713) requires public officials to act promptly, with integrity, and to avoid conflict of interest; violations are grounds for administrative liability.

RA 3019 penalizes corrupt practices, including receiving gifts in connection with official duties and causing undue injury to the government.

The COA's rules on the grant of cash advances and the liquidation of advances are part of internal control; unliquidated advances are deducted from the salary of the accountable officer.

The LGU must maintain an Internal Audit Unit or designate an internal auditor; the unit reports to the local chief executive and the sanggunian.

The budget process has four phases: budget preparation, budget legislation, budget execution, and accountability.

The Local Development Council and the Local Finance Committee (LFC) prepare the budget; the LFC is composed of the planning and development coordinator, the budget officer, and the treasurer.

The sanggunian enacts the annual budget ordinance; the local chief executive may veto items, and the sanggunian may override the veto by a two-thirds vote.

Budget execution requires the release of allotments by the budget officer and the issuance of disbursement vouchers; no expenditure may exceed the appropriation.

The LGU must observe the 20% Development Fund requirement under RA 7160; the fund is used for development projects and must be appropriated in the annual budget.

The 5% Calamity Fund is a mandatory appropriation; it may be used only upon declaration of a state of calamity by the sanggunian.

The LGU's budget must be balanced; the local chief executive must submit a balanced budget to the sanggunian, and the sanggunian may not increase the budget without identifying new revenue sources.

The DBM's Local Budget Circulars prescribe the forms and timelines for budget preparation and execution; the LGU must comply with the annual budget calendar.

The barangay, municipality, city, and province each maintain a separate local treasury; the provincial treasurer does not hold city or municipal funds, except where the LGC expressly assigns a shared function.

Local government units (LGUs) have taxing and revenue-raising power under Article X, Sec. 5 of the 1987 Constitution and Book II of RA 7160, subject to limitations Congress may set.

The local treasury's core duties: collect, custody, and disburse local funds; keep accounts and records; and report collections and balances to the local chief executive and sanggunian.

Only the local treasurer, or an officer duly designated in writing, may receive money for the LGU; all receipts must be evidenced by an official pre-numbered receipt.

Local funds are classified as General Fund, Special Education Fund (SEF), Trust Fund, and Special Accounts; each has distinct rules on use and custody.

The SEF is funded by the additional 1% real property tax and a share of the 1% on idle lands; it is disbursed only for purposes authorized by the Local School Board.

The barangay treasurer is appointed by the punong barangay with the concurrence of the sangguniang barangay; the municipal/city/provincial treasurer is appointed by the local chief executive with sanggunian concurrence.

The treasurer is bonded under the Fidelity Bonding Program; the bond must be in force before the officer assumes custody of funds and property.

RA 7160 (Local Government Code of 1991) Book II governs local finance; RA 7160 Sec. 470-471 define the treasurer's appointment, powers, and duties.

RA 6713 (Code of Conduct and Ethical Standards) and RA 3019 (Anti-Graft and Corrupt Practices Act) apply to all local treasury personnel.

COA Circular 92-382 and the Government Accounting Manual (GAM) for LGUs set the accounting and reporting rules for local funds.

RA 9480 grants a one-time tax amnesty on delinquent real property taxes; RA 12001 (Real Property Valuation and Assessment Reform Act) governs valuation and assessment.

RA 11032 (Ease of Doing Business Act) requires LGUs to observe prescribed processing times and to publish a Citizen's Charter for treasury transactions.

The Local Government Code requires the treasurer to render a monthly report of actual receipts and expenditures to the sanggunian and the local chief executive within 10 days after the close of each month.

RA 9184 (Government Procurement Reform Act) governs disbursements arising from procurement; RA 9184's IRR prescribes the documentary requirements for payment.

COA Circular 2019-001 and the GAM for LGUs prescribe the use of the Unified Accounts Code Structure (UACS) in all local financial transactions.

Cash programming projects the LGU's monthly cash inflows (collections, shares, transfers) against outflows (payroll, obligations, debt service) to avoid idle cash or shortfalls.

The cash program is prepared by the treasurer and approved by the local chief executive; it covers at least the current budget year and is updated monthly.

The Local Government Code requires the treasurer to submit a cash program to the sanggunian and the local chief executive within 30 days after the start of each fiscal year.

Idle cash may be deposited in time deposits with authorized depository banks, subject to COA rules and sanggunian authorization; the term must not exceed the period the funds are not needed.

The LGU must maintain a minimum cash balance sufficient to cover at least one month of operating requirements; the exact level is set by local fiscal policy.

Collections must be deposited intact daily, or at least once a week where the amount is small, to the authorized depository bank; no disbursement may be made from collections.

The treasurer maintains a Cash Book and a Daily Cash Position Report; the report is reconciled with the bank statement each month.

Cash advances for payroll and petty cash are subject to liquidation within the period prescribed by COA (generally 5 days for petty cash and 15 days for payroll, unless extended).

All collections must be covered by an official receipt (COA Form 51) or a revenue collector's receipt; the receipt must be issued at the time of payment.

Collections are deposited intact to the LGU's authorized depository bank account; no portion may be used for disbursements, even for authorized expenses.

The treasurer remits the LGU's share of national taxes (IRA/NTA) and other shares to the proper account; the LGU's share of national taxes is released monthly by the DBM.

Real property tax collection is governed by RA 7160 Sec. 250-256; the treasurer issues a real property tax receipt and updates the assessment roll.

The treasurer must deposit collections within the next banking day after receipt; where no bank exists in the locality, deposit is made with the municipal/city treasurer or the nearest bank.

The accountable officer must issue a certification of deposit and keep a record of all deposits; the deposit slip and the official receipt must be reconciled daily.

The treasurer's remittance of collections to the general fund or SEF must be supported by a report of collections and deposits (RCD) and a certificate of deposit.

Failure to remit or deposit collections on time is a ground for administrative and criminal liability under RA 3019 and the Revised Penal Code (malversation).

Disbursement requires a valid obligation (purchase order, contract, or payroll) and a disbursement voucher (DV) approved by the local chief executive or authorized official.

The DV must be supported by the original invoice, official receipt, delivery receipt, and the certificate of acceptance/inspection.

The treasurer prepares the check or ADA (Advice to Debit Account) only after the accountant certifies the availability of funds and the budget officer certifies the appropriation.

Checks must be drawn on the LGU's depository bank and signed by the local chief executive and the treasurer (or their authorized signatories); two signatures are required.

An ADA is used when the LGU maintains an account with the Land Bank of the Philippines; the LGU issues an ADA to the bank, which debits the LGU's account and credits the payee.

Checks must be released only to the payee or an authorized representative; the payee must present identification and sign the disbursement voucher.

Stale checks (generally 6 months from date) must be cancelled and replaced; the treasurer must maintain a check register and reconcile it with the bank statement.

The treasurer must report unclaimed checks and remit the amount to the Treasurer of the Philippines after the prescribed period under the Unclaimed Balances Law (Act No. 3936).

The treasurer is the accountable officer for all funds and property in the local treasury; accountability begins upon assumption of office and is discharged only by proper turn-over.

A turn-over of accountability is required when the treasurer is transferred, resigns, or is separated; the turn-over must be documented and witnessed by the COA auditor.

Accountable forms (official receipts, checks, treasury warrants) must be kept in a safe and recorded in a logbook; unused forms are inventoried and reported.

The treasurer must maintain a record of all accountable forms and their serial numbers; lost or destroyed forms must be reported to COA immediately.

Property in the treasurer's custody must be recorded in the property ledger and inventoried annually; the inventory is submitted to COA.

The treasurer may be held liable for the loss of funds or property due to negligence; the liability is personal and may be enforced through a fidelity bond claim.

The COA auditor conducts an annual audit of the treasurer's accounts and issues an audit report; the treasurer must submit all records and documents upon request.

The treasurer must secure the treasury premises and maintain a vault with controlled access; the combination must be changed upon change of personnel.

The treasurer submits a Monthly Report of Collections and Deposits (RCD) to the accountant, the local chief executive, and the sanggunian.

The accountant prepares the Monthly Trial Balance and the Financial Statements (Statement of Financial Position, Statement of Financial Performance, Statement of Cash Flows, Statement of Changes in Net Assets).

The annual financial statements must be submitted to COA within 30 days after the end of the fiscal year, or as prescribed by COA.

Bank reconciliation is performed monthly; the treasurer reconciles the Cash Book balance with the bank statement and reports discrepancies to the accountant.

The LGU's financial statements must be prepared using the GAM for LGUs and the UACS; the reports are consolidated by the accountant and submitted to COA.

The Statement of Cash Flows reports cash receipts and payments classified into operating, investing, and financing activities.

The treasurer must reconcile the cash balance with the accountant's general ledger; any variance must be investigated and adjusted before the financial statements are finalized.

The LGU's Annual Budget and the Statement of Appropriations, Allotments, Obligations, Disbursements, and Balances (SAAODB) must be reported to COA and the DBM.

Internal control has five components: control environment, risk assessment, control activities, information and communication, and monitoring.

Segregation of duties: the officer who authorizes a transaction must not be the same officer who records or custodies the related asset.

The COA auditor performs a pre-audit of disbursements and a post-audit of accounts; the auditor's findings are reported to the local chief executive and the sanggunian.

The COA's three audit approaches: financial audit, compliance audit, and performance audit.

The Code of Conduct (RA 6713) requires public officials to act promptly, with integrity, and to avoid conflict of interest; violations are grounds for administrative liability.

RA 3019 penalizes corrupt practices, including receiving gifts in connection with official duties and causing undue injury to the government.

The COA's rules on the grant of cash advances and the liquidation of advances are part of internal control; unliquidated advances are deducted from the salary of the accountable officer.

The LGU must maintain an Internal Audit Unit or designate an internal auditor; the unit reports to the local chief executive and the sanggunian.

The budget process has four phases: budget preparation, budget legislation, budget execution, and accountability.

The Local Development Council and the Local Finance Committee (LFC) prepare the budget; the LFC is composed of the planning and development coordinator, the budget officer, and the treasurer.

The sanggunian enacts the annual budget ordinance; the local chief executive may veto items, and the sanggunian may override the veto by a two-thirds vote.

Budget execution requires the release of allotments by the budget officer and the issuance of disbursement vouchers; no expenditure may exceed the appropriation.

The LGU must observe the 20% Development Fund requirement under RA 7160; the fund is used for development projects and must be appropriated in the annual budget.

The 5% Calamity Fund is a mandatory appropriation; it may be used only upon declaration of a state of calamity by the sanggunian.

The LGU's budget must be balanced; the local chief executive must submit a balanced budget to the sanggunian, and the sanggunian may not increase the budget without identifying new revenue sources.

The DBM's Local Budget Circulars prescribe the forms and timelines for budget preparation and execution; the LGU must comply with the annual budget calendar.