Laws, Rules and Regulations on Local Treasury Operations
Hierarchy of authority
Constitution → RA 7160, especially Book II → national statutes such as RA 6713, RA 3019 and RA 11032 → COA rules and the Government Accounting Manual → DBM and BLGF issuances → local ordinances. An ordinance cannot override RA 7160 or COA accountability rules.
Treasury-specific rules
- Sec. 470: the local treasurer is appointed by the Secretary of Finance from recommendees; the assistant treasurer is appointed by the local chief executive.
- Sec. 471: the treasurer takes charge of funds, collects revenues, deposits and disburses, and renders reports.
- Accountable officers must be bonded, and the bond must cover the maximum accountability.
- COA prescribes official receipts, the RCD, RCI, RAAF and accounting rules.
- RA 6713 governs conduct, gifts and conflict of interest; RA 3019 covers graft; RA 11032 sets processing times.
Worked example
A sanggunian ordinance says the treasurer may keep 5 percent of collections as an office incentive. Is it valid? No. Compensation and incentives must rest on national law and appropriation. Collections are LGU funds and must be deposited intact. The treasurer follows RA 7160 and COA rules, and the ordinance is void to that extent.
Traps
- Citing an ordinance over a COA circular.
- Confusing the treasurer's appointment with the mayor's.
- Treating COA circulars as optional guidance.
- Ignoring BLGF memoranda on reporting and cash programming.