2.

Relationship of the Manual to Existing Laws, Issuances and Pronouncements of Other

Fiscal and Regulatory Agencies

Basically, ULTOM is based from the provisions of the LGC as amended by R.A. 9640 and R.A. 9006
and its “Implementing Rules and Regulations,” particularly those that apply to the fiscal and other
related local treasury operations of LGUs. It also draws heavily from the Government Accounting
and Auditing Manual (GAAM) and the New Government Accounting System for LGUs (NGAS-LGU)
of COA; the Updated Budget Operations Manual (UBOM) of the DBM; opinions/rulings and
issuances of the BLGF; policies, regulations and opinions/rulings/decisions of various bodies or
agencies and authorities concerned with fiscal management and operations such as the DOF, COA,
DBM and NEDA and other authoritative private references. Consequently, this Manual does not
seek to supersede these issuances and rulings of the fiscal agencies, but rather to reiterate and
amplify their respective applications.

C. OBJECTIVES OF THIS MANUAL

The objectives of this MANUAL are as follows:

1. To provide Local Treasurers with an updated reference material that will guide them in
discharging their duties and functions under the decentralized framework and environment of the
LGC;

2. To provide Local Treasurers with a basis for developing their own capabilities to respond to the
demands of their roles within the new LGU and fiscal management structures;

3. To enable Local Treasurers to appreciate fully their powers, functions, and authorities, and to
relate these constructively with those of other officers concerned with fiscal functions;

4. To introduce to Local Treasurers the basic concepts and tools of the non-traditional
functions of LGUs in which they may be involved in whether as principals or as advisers.

5. To serve as a guide to Local Treasurers and other fiscal officers in the management of
the LGU’s financial affairs conforming to prescribed good governance practices and internal
control measures for greater, proper accountability and transparency.

D. BRIEF DESCRIPTION THIS MANUAL

This manual is consist of four (4) books which are printed and packaged separately for easy
reference. Each book contains acronyms, table of contents, body of the manual, process flow,
illustrative examples and annexes for easy reference.This is intended to be used as a stand-alone
reference for Local Treasurers. However, users of this manual are encourage to have the texts of
the LGC and its IRR, GAAM, the NGAS-LGU, the UBOM and the myriad of compilation of rulings,
issuances and circulars for further readings.

Provisions contain in the manual are close paraphrase if not quoted verbatim from the relevant text
of the laws, regulations, policies, issuances, opinions rulings and decisions. To achieve the
purposes of this Manual, the valid portions of related provisions from various laws and issuances
are recast into a single provision, and parts of a single provision that apply to different aspects of
treasury operations, are reflected separately in the appropriate topics.

The source or sources of particular sections or topics of this Manual are reflected in the text itself,
 or set in parenthesis, to enable the user to refer to the original provision if desired. Where a
particular topic of this Manual refers to provisions quoted in another Chapter or Section, the
location of the provisions alluded to is indicated.

The content and description of each book is briefly presented below:

BOOK ONE: FISCAL ORGANIZATION OF LOCAL GOVERNMENTS AND THE LOCAL

TREASURER

Book One describes the general concept of fiscal organization of Local Governments Units (LGUs)
including the contemporary requirements for the creation of Provinces, Cities and Municipalities
pursuant to the existing laws of the land. This book also discusses the qualifications and
appointments as well as the general and specific roles, duties and responsibilities of the local
treasurers and his/her assistant.

Likewise, this book enumerates the role of the DOF thru BLGF in the supervision of all local
treasurers to ensure a uniform application of standard procedures in the operations of local treasury
offices.

Book One is consist of five (5) Chapters including Annexes, viz:

Chapter 1. Fiscal Organization of Local Governments and the Local Treasurer

Chapter 2. Qualifications and Appointment of the Local Treasurer and the Assistant Treasurer

Chapter 3. Roles, Duties and Responsibilities of the Local Treasurer

Chapter 4. Bonding of Local Treasurers and other LGU Accountable Officers

Chapter 5. Administrative and Technical Supervision by the Bureau of Local Government

Finance (BLGF)