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Local Treasury Operations Manual (LTOM) Overview

State Autonomy: The State shall ensure the autonomy of local governments as stipulated in the 1987 Philippine Constitution.
General Supervision: The President oversees local governments; provinces must ensure compliance of municipalities, and vice-versa.
Revenue Generation: Each Local Government Unit (LGU) may create its own sources of revenue by levying taxes, fees, and charges.
National Tax Share: LGUs are guaranteed a fair share in national taxes, automatically released without further action.

Dynamic Compendium: The LTOM, 2nd Edition is a comprehensive reference designed to adapt to the evolving local financial landscape. It is revised based on stakeholder feedback and legal updates.
Structure: The LTOM is organized into multiple volumes, each covering a specific area of local treasury operations:
- Volume 1: Fiscal Organization
- Volume 2: Receipt and Collection of Income
- Volume 3: Fund Management
- Volume 4: Administration and Collection of Taxes

Guidance: Provides local treasurers updated reference materials for effective execution of their duties.
Skill Development: Equips treasurers with necessary tools to meet operational challenges.
Awareness: Educates treasurers on their powers and responsibilities, enhancing their role in fiscal management.

Collaboration from key stakeholders helped in drafting this updated edition, including the BLGF, EU PFM 2 Project, and ADB through various workshops.

The operations of local treasurers are crucial for achieving fiscal transparency and sustainability which directly impacts local governance and economic development.

Fiscal Performance Monitoring: The BLGF conducts evaluations of local treasury operations to ensure compliance with laws and provide technical assistance where required.
Fiscal Sustainability Scorecard: This tool regularly assesses LGUs on their fiscal performance, helping inform policy and identify areas for improvement.

BLGF’s Role: The BLGF exercises technical and administrative supervision over local treasury operations, ensuring that treasury offices adhere to regulations and improve their operational efficiency.

Continuous Training Programs: Ongoing training initiatives aim to enhance the technical skills of local treasurers, ensuring they remain capable of managing local fiscal operations effectively.

Appointment of Local Treasurers: Procedures for appointing local treasurers include evaluations based on educational qualifications, relevant experience, and performance ratings.
Documentary Requirements: Strict compliance with documentation is mandatory for processing appointments, ensuring only qualified candidates are selected.

Revenue Collection: Responsible for the collection of local taxes and fees.
Fund Management: Custodian of LGU funds, ensuring proper disbursement and management.
Advisory Role: Advises local government officials on matters related to public finance.
Reporting: Prepares and submits financial reports to the Local Chief Executive and the sanggunian.

Assists the Local Treasurer, capable of performing the Treasurer’s functions in his/her absence.

Updated laws affecting local government finances are included in the LTOM for reference. This includes significant laws and amendments that shape local fiscal policies.