MANILA, Philippines - The Department of Finance is imposing stricter sanctions on local treasurers who fail to submit their local government units' finance reports on time.
The DOF noted that seven out of every 10 local treasurers failed to submit reports on time from 2009 to 2012.
For the same four-year period, 30 municipalities from 10 provinces did not submit any quarterly report. The provinces with the most number of municipalities that continuously failed to submit reports from 2009 to 2012 were the Province of Quezon, with six municipalities, and the Province of Isabela and the Province of Romblon, with five municipalities each.
Without such reports, the DOF said the consolidated reports and the forecast for revenue targets for the LGUs were significantly affected.
Finance Secretary Cesar Purisima issued Department Order No. 034-2014, dated May 26, 2014, setting the sanctions for local treasurers who fail to report timely and accurate electronic Statements of Receipts and Expenditures (SRE) reports.
He also ordered the Bureau of Local Government Finance (BLGF) to strictly implement the department order, as part of efforts to promote greater fiscal transparency and accountability at the local level.
The SRE is used to evaluate the revenue generation capacity, level of debt and borrowing capacity, expenditure management, and overall financial performance of the LGUs.
Under the new order, the DOF set sanctions for failure to submit the reports within the prescribed periods. This "light offense" will have sanctions of reprimand for 1st Offense, suspension (1-30 days) for 2nd Offense, and dismissal from the service for 3rd Offense.
The first three quarterly reports are required to be submitted on or before the 20th of the month following the end of the quarter, and the year-end report shall be submitted on or before March 31 of the subsequent calendar year.
In addition, failure to submit inaccurate or misleading reports is considered ‘less grave offense’ or simple misconduct, with sanctions ranging from suspension (one month and one day up to six months) for 1st Offense, and dismissal from the service for 2nd Offense.