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Financial Performance e-Report

Municipality of XXX, PY 2009

This Report provides a practical tool to gauge your LGU's financial performance as
compared to financial performance of all LGUs within the same LGU type and income class.
The information lets you know whether your LGU is ahead or lagging behind with many LGUs
for purposes of maintaining good performance, or catching up. This is to note that reference data
year is 2008 but reported in 2009.

Financial performance is divided into two parts: (1) Revenue Generation, and (2)
Resource Allocation and Utilization. It is hoped that the information presented here would help
you to plan ahead for the LGU and adjust revenue and expenditure priorities in accordance with
the financial realities, projections and priorities of the organization.

Revenue Generation

Municipali
ty of

Interpretation Guide

Indicator: Cost to Collect Revenues


Computation: (cost in collecting revenues/total local revenues
collected) x 100
Significance: Determines local revenue collection efficiency
Desired performance: Should be lower than the average of LGUs
with the same LGU type and income class
Exceptional performance: Lower for both conditions: (1) average of
LGUs with the same LGU type and income class,
(2) national average of the same LGU type
regardless of income class
Municipali
ty of

Interpretation Guide

Indicator: Locally-Sourced Revenues to Total Income


Computation: (Amount of locally-sourced revenues/Total LGU
Income) x 100
Significance: Determines local revenue collection effort and
dependency from external revenue sources, e.g. IRA &
other inter-governmental fund transfer
Desired performance: Locally-sourced revenues to total income
should be higher than the average of LGUs with
the same LGU type and income class
Exceptional performance: Locally-sourced revenues to total income
should be higher than the: (1) average of LGUs
with the same LGU type and income class, (2)
national average of the same LGU type regardless
of income class
Municipal
ity of
XXX

Interpretation Guide

Indicator: Debt Service Ratio


Computation: Actual debt service cost/regular income
Significance: Considers the proportion of actual debt service costs to total regular
income.
Desirable performance: Should not exceed 20% of the regular
income. That is the debt servicing limitation set
for under LG Code of 1991.