Key discussion results among BLGF top management

with technical advice from:

Norman R. Ramos
LGU Finance Adviser
ADB TA 7451
 Assures the availability of a pool
of competent local treasurers
Competency
Certification and Re- Performance
certification System Equip treasurers with necessary skills Evaluation System
to achieve performance targets 1. Local treasurer
competency
certification and
Enhance the professionalism and re-certification
productivity of local treasurers in the system.
Philippines so that they may better serve 2. Local treasurer
their LGUs and the public.
performance
evaluation
system.
BLGF-provided
support tools like
3. BLGF-provided
official calendar of support tools
local treasury
operating dates and
deadlines

BLGF Treasurer Certification and Performance

Evaluation System
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 Local revenue and
Fiscal and financial Implementation of
resource mobilization LGU capacity building
accountability special projects
programs

5 BLGF Key Internal administration

Result Areas

Local treasurers
41 Performance consistently
standards except rating high in
for collection complying with
Last 4 result areas efficiency are all set treasury
are all directed Defined outputs compliance to processes but
towards the seek to maximize process-oriented local revenue
attainment of the LGU revenue rather than results vary
1st result area potential results-oriented greatly

41 performance
standards for
1,695 treasurers is
hard for BLGF to
tract much more
validate

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Evaluation System
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 Target collection rate
4. Maintain a for arrears including
reasonable level proceeds from
BLGF set 90% Target
1. Collect all of receivables property auction
collection efficiency current local
Arrears in the current
for local revenues revenues due
year collected in the
following year
LGFPMS Benchmark
Cost of Collection/
Php of Local Revenue 2. Cost-effective Maximize revenue
Collected collection efforts 3. Stable and LGFPMS benchmark
potential of LGU reliable local for per capita local
revenue growth revenue growth

Target rate of return

5. Optimum cash on average free cash 121 day Treasury bill
management for the year rate

Attainment of
Less variation in LGFPMS benchmark
revenue results indicators
BLGF set processes among local
Support reminder will be used more treasurers of similar
tools provided by creatively and performance
BLGF and effectively to rankings
Proposed competencies produce desired
performance imparted to them by bottom line results
standards will force the competency
treasurers to focus certification system
on bottom line
results

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Evaluation System
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1. Five major operational goals
a. Collect all current local revenues due.
b. Cost-effective collection efforts.
c. Stable and reliable local revenue growth.
d. Maintain a reasonable level of receivables.
e. Optimum cash management.

2. There is a corresponding performance indicator for each

operational goal that can be computed using data
submitted via the SRE system.

3. Option for BLGF to set performance benchmarks either

on just a LGU-type and LGU-class levels or a combination
of LGU-type-class and regional levels.

4. Operational goals and performance indicators are all

directed towards improvements in LGU financial
performance as measured by the LGFPMS.

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 The objectives of the certification and re-certification system are as
follows:
a. To enhance the quality of local treasury services provided to the LGUs and the
public.
b. To increase the value of treasury services to the LGU management group,
especially the LFC.
c. To increase the professional competency of local treasurers.
d. To encourage personal growth among local treasurers.
e. To provide professional recognition of local treasurers.

 This program establishes standards that recognize professional

attainment and provides a system through which the required standards
can be met.

 On completion of these standards, the applicant is recognized

professionally by both the Civil Service Commission (CSC) and the
Philippine Association of Local Treasurers and Assessors (PHALTRA) as a
Certified Local Treasurer of the Philippines.

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1. Certification. Certification increases the treasurer’s value within his
or her LGU and within BLGF. It makes him or her more competitive for
promotions and incentives, raises his or her sense of professional
accomplishment, and enhances his or her level of administrative and
functional expertise. Certification also is a credential he or she can carry
beyond government service into other career pursuits.

2. Continuing competency maintenance and buildup. Continuing

education is vital for treasurers, who must cope with the growing
complexity of treasury operations, changes in national and local laws
and regulations, and the proliferation of new and complex financial tools
and techniques. To ensure that competence is maintained through
continuous professional development, re-certification at a pre-defined
time interval is required by the system.

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 All incumbent (except those retiring within 5 years) and aspiring local
treasurers are required to pass the certification requirements required
by their existing or aspired-for positions.

 Certifications expire in five years from the date of issuance. At end of the
period recertification is necessary.

 The proposed three-level certification requirements applicable to each

major treasury position are as follows:
 Basic: 6th to 4th class LGU
 Intermediate: 3rd to 2nd class LGU
 Advanced: 1st class LGU and HUCs and special cities (Manila and
Quezon City)

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System Development and Implementation Framework

BLGF/DOF Collaborating Government Agencies and Institutions

Start
Phil Asso. Of
Local Prof.
BLGF HR Civil Service Local
Government Regulatory
Personnel Commission Treasurers & Academe
Academy Commission
BLGF drafts final (CSC) Assessors
(LGA) (PRC)
details and IRR (PHALTRA)
Preparatory Phase

for Competency
Certification
BLGF Process
Selection
Board

External Agency Solicited via a

Technical Inputs Study Committee
Consultant
inputs

BLGF approves
BLGF system & IRR LGA Participating
EXECOM Network Resources Colleges
& Facilities And
DOF issues Universities
Memo/Circular
for
Implementation

Screening
process & Test
Detailing out of
design &
BLGF HR Competency
construction incl.
Personnel fields
qualification
standards

Recommendatio
Design of Accredited Implementation
BLGF ns including
Competency Programs of Competency
Selection sanctions
build-up Build-up
Board curriculum
Implementation Phase

Certification
BLGF Result Utilization Those who have undergone the
Test
EXECOM competency build-up programs will
Administration
be tested. Those who fail will be
and Competency
coached to undertake further
Certification
competency build-up

Implementation of
Competency
1st 2 years will be
Maintenance/
directly handled
Upgrading
by the CSC.
Recommendationsi
Competency
ncluding sanctions
Certification
BLGF Promotion
Board
After 2 years, all active
representative
PHALTRA members will all be
certified local treasurers so Oversight role
End
control of the process can
already be turned over to a
PHALTRA certification
Certification
Committee within CSC representative
BLGF Treasurer Certification and Performance
committee with oversight
roles for BLGF and CSC by
PHALTRA Evaluation System
the 3rd or 4th year
1/7/2011 9
 The first two years of running the testing component of the
certification program will be directly handled by the CSC.

 After 2 years, all the local treasurer-members of the PHALTRA will

already be certified local treasurers of the Philippines so that by the 3rd
or 4th year of the program, control of the testing component can
already be transferred to a Certification Committee within PHALTRA
with a member of the Selection Board of BLGF and a member from the
CSC performing oversight functions within the certification committee.

 The running of the competency build-up component will be handled by

an accredited network of training institutions/trainors drawn from the
LGA network, the PHALTRA network, and from existing and capable
academic institutions not presently part of the two aforementioned
networks.

 Competency testing will be held every June of the applicable year.

 Competency certificates will be issued during the national convention

of PHALTRA following the applicable June examination.

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 All incumbent treasurers will be required to take the certification tests
except those who will be retiring within 5 years from the 1st year of
implementation of competency testing. The rationale for the
exemption is that a treasurer who fails to be certified is given 2 years to
be certified and the validity of the certification is 5 years so it will do
him or her little good to have him or her certified.

 The minimum eligibility requirement for testing will be waived for

incumbent treasurers. Incumbent treasurers who fail to make the
grade in the initial testing will be given “coaching” as to what remedial
courses he or she should take and is given up to 2 years to pass the
appropriate certification examination. In the meanwhile, he or she will
be given a probationary competency certificate.

 Treasurers who fail the 2nd time will be encouraged to take voluntary
retirement or be “terminated for cause” — incompetence. Each failure
will be made equivalent to an “unsatisfactory” performance rating. Two
consecutive unsatisfactory rating could lead to “termination for cause”.
Since the average age of incumbent treasurers is 57 years, it would do
them as well as the LGU they serve very little good to have them study
further for another 2 years for a total of 4 years since he or she first
took the certification examination.

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 All aspiring treasurers must be competency certified for the position
they are aspiring.

 Those aspiring to take the competency tests must first meet the
minimum testing eligibility requirements in terms of education and
relevant experience for them to be allowed to take the competency
examination.

 New aspirants who fail the 1st time will be given coaching as to
remedial courses and be allowed to retake the competency
examination a 2nd time within 2 years. After a 2nd failure, the applicant
will be directed to formally take the entire prescribed competency
course in an accredited institution before being allowed to take the test
a 3rd time.

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Proposed
Interface Career
between Path
local treasurer competency certification and performance evaluation systems

Municipality City Province

Special and
Highly Urbanized
Cities

Advanced Competency Level

1st Class 1st Class
LGU class promotion
LGU type promotion

LGU type promotion

1st Class

based Elibility
Competency
Performance based
Performance movements
rating in
previous level
Intermediate Competency Level

Performance based movement

LGU type LGU type

2nd Class 2nd Class 2nd Class
promotion promotion

LGU class promotion LGU class promotion LGU class promotion

LGU type LGU type

3rd Class 3rd Class 3rd Class
promotion promotion

based Elibility
Competency Performance based
Performance
rating in movements
previous level

4th Class LGU type 4th Class LGU type 4th Class
promotion promotion
Performance based movement

LGU class promotion LGU class promotion LGU class promotion

5th Class
Basic Competency Level

LGU type LGU type

5th Class 5th Class
promotion promotion

LGU class promotion

6th Class

Performance based
movements

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1. Upward movement within each
competency level whether to a higher
LGU income class or from a one LGU type
to the next, e.g., municipality to a city
will be based on performance ratings.

2. Upward movement to the next higher

competency level requires competency
certification for that level + a required
performance rating from his current
position.

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1. Performance benchmarks and
corresponding rating scales for
revised local treasurer performance
rating system be established by BLGF
for exposure and advocacy during
the BLGF Planning Conference in
February 2011.
2. Expose and do advocacy work for
the treasurer certification system
during the BLGF Planning
Conference in February 2011.
3. BLGF top management to initiate
initial meetings including
organizational meeting for Study
Committee for the detailing out of
the system development and
implementation framework and
steps of the competency
certification module.

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