LOCAL GOVERNMENT FINANCIAL PERFORMANCE MONITORING SYSTEM (LGFPMS)

BLGF implementation of the Manual for the Local Public Financial Management Tools for the electronic
Statement of Receipts and Expenditure:
BASIS: BLGF Memorandum Circular No. 16-2015 dated 19 June 2015 (Local Public Financial Management Tools
for the Electronic Statement of Receipts and Expenditures)

1. REVENUE LEVEL
Total Revenues as compared to the average value for the LGU income class to which the LGU belongs.

FORMULA: TOTAL REVENUES EXAMPLE: Real Property Tax (General Fund + SEF) + Tax on Business + Other Taxes +
Regulatory Fees + Service/User Charges + Receipts from Economic Enterprises + Other Receipts + Internal Revenue Allotment +
Other Shares from National Tax Collection + Inter-Local Transfer + Extraordinary Receipts

BENCHMARK: LGU revenue > LGU income class average

2. REVENUE GROWTH
The trend in revenue across time

FORMULA: Total RevenuesYr1 Total RevenuesYr0 x 100

Total RevenuesYr0

BENCHMARK: The average annual % increase in LGU revenues > Annual inflation rate + Annual population growth rate

3. PER CAPITA LOCALLY SOURCED REVENUE + SEF

Amount of revenues under LGU control and oversight on a per capita basis

FORMULA: Locally Sourced Revenue (LSR) + SEF

Population

LSR = Real Property Tax (General Fund) + Tax on Business + Other Taxes + Regulatory Fees + Service/User Charges + Receipts
from Economic Enterprises

BENCHMARK: Per capita locally sourced revenue + SEF > average for the LGU income class to which the LGU belongs

4. PER CAPITA GROWTH IN LOCALLY SOURCED REVENUE

Growth in the amount of revenues under LGU control on a per capita basis
FORMULA:
LSR per CapitaYr1 LSR per CapitaYr0 x 100
LSR per CapitaYr0

BENCHMARK: Growth in Locally Sourced Revenue per Capita > average for the LGU income class to which the LGU belongs

5. % LOCALLY SOURCED REVENUES TO TOTAL LGU REVENUE

The share of revenues that are under LGU control and results from local economic activity

FORMULA: Locally Sourced Revenues x 100

Total Revenues

BENCHMARK: % Share of locally sourced revenue to total LGU revenue > average share for the LGU income class to which the
LGU belongs

6. % ANNUAL REGULAR INCOME (ARI) TO TOTAL REVENUE

% Annual Regular Income to Total Revenue

ARI = Real Property Tax (General Fund) + Tax on Business + Other Taxes + Regulatory Fees + Service/User Charges + Receipts
from Economic Enterprises + Internal Revenue Allotment (Current Year) + Other Shares from National Tax Collection + Interest
Income

FORMULA: Annual Regular Income x 100

Total Revenues
BENCHMARK: % Share of recurring revenue to total LGU revenue > average share for the LGU income class to which the LGU
belongs

7. RATIO OF TOTAL REVENUE OFFICE OPERATIONS COST (TROOC) TO LOCALLY SOURCED

REVENUES+SEF The full cost of collecting a peso of revenues

FORMULA: TROOC X 100

LSR+SEF

BENCHMARK: TROOC < average for the LGU income class to which the LGU belongs
8. REAL PROPERTY TAX ACCOMPLISHMENT RATE (RPTAR) % of current RPT collected within the year to the total
RPT due for the year as estimated from the assessed value of taxable real properties

FORMULA: Actual RPT Collections (GF + SEF) x 100

Targeted RPT Collections (GF + SEF)

Actual Real Property Tax Collection = Real Property Tax Collection (GF + SEF) Targeted Real Property Tax Collection = Real
Property Tax Collectibles Net of Restriction (GF + SEF)

9. TOTAL EXPENDITURES PER CAPITA Average amount spent by LGU per constituent

FORMULA: Total Expenditures

Population

Total Expenditures = Total General Fund (GF), Special Education Fund (SEF) and Trust Fund (TF) Current Operating
Expenditures (PS + MOOE + FE) + Total General Fund (GF), Special Education Fund (SEF) and Trust Fund (TF) Non-Operating
Expenditures (Capital Outlay)

BENCHMARK: Per capita total LGU expenditures > average for the LGU income class to which the LGU belongs

10. PERSONAL SERVICES EXPENDITURES RATIO CODAL

The ratio of LGU expenditures for personal services in the General Fund to Annual Regular Income of the LGU in the next preceding
year

FORMULA: PSE General Fundt x 100

ARIt+1

BENCHMARK: PSER < 45% for 1st to 3rd income class LGUs and 55% for 4th or lower income class LGUs and should exhibit a
decreasing trend

11. TOTAL PERSONAL SERVICES EXPENDITURES RATIO (TPSER)

The ratio of LGU expenditures for personal services to total LGU expenditures

FORMULA:
Total Personal Services Expenditures x 100
Total Expenditures

Total Personal Services Expenditures = Personal Services Expenditures General Fund + Trust Fund + Special Education Fund (SEF)

BENCHMARK: PSERT< average for the LGU income class to which the LGU belongs and should be decreasing

12. TOTAL DEBT SERVICE EXPENDITURE RATIO (DSER)

The ratio of LGU total debt service expenditures to LGU total expenditures

FORMULA:
Total Debt Service Expenditures x 100
Total Expenditures

Total Debt Service Expenditures = Debt Service (FE) (Interest Expense & Other Charges) + Debt Service (Principal Cost) (GF + TF +
SEF)

BENCHMARK: DSER < average for the LGU income class to which the LGU belongs and should be decreasing

13. SOCIAL SERVICES EXPENDITURE RATIO (SSER)

The ratio of LGU social expenditures to total LGU expenditures

FORMULA: Social Services Expenditures x 100

Total Expenditures

Social Services Expenditures = Education, Culture & Sports/Manpower Development + Health, Nutrition & Population Control +
Labor and Employment + Housing and Community Development + Social Services and Social Welfare (GF + SEF + TF)

BENCHMARK: SSER > average for the LGU income class to which the LGU belongs and should be increasing

14. ECONOMIC SERVICES EXPENDITURE RATIO (ESER)

The ratio of LGU economic expenditures to total LGU expenditures

FORMULA:
Economic Services Expenditures x 100
Total Expenditures

Economic Services Expenditures = Economic Services (GF + SEF + TF)

BENCHMARK: ESER > average for the LGU income class to which the LGU belongs and should be increasing
15. DEBT SERVICE RATIO (DSR)
The ratio of LGU expenditures for debt service to total LGU annual regular income

FORMULA: Debt Service Payment (GF) x 100

Annual Regular Income
Debt Service (GF) = Debt Service (FE) (Interest Expense & Other Charges) + Debt Service (Principal Cost) (GF)

BENCHMARK: DSR < 20% of annual regular income and ratio should at least be stable if not decreasing across time
16.GROSS OPERATING SURPLUS (GF) TO DEBT SERVICE RATIO (GOSDSR)
The ratio of LGU operating surplus to debt service

Gross Operating Surplus/Deficit = Net Operating Income/ (Loss) From Current Operations + Debt Service (FE) (GF)

Operating Surplus =- Operating Revenues Operating Expenditures

FORMULA: Gross Operating Surplus (Deficit) (GF)

Debt Service Payment (GF)

BENCHMARK: GOSDSR > average for the LGU income class to which the LGU belongs and should be increasing

17. DEBT TO NET ASSET RATIO (DNAR)

The ratio of an LGUs outstanding debt to its depreciated asset base

FORMULA: Total Outstanding Debt x 100

Total Net Assets
Total Net Assets = Total Assets (Net of Depreciation

BENCHMARK: DNAR should be < 1 indicating that an LGU has a sufficient asset base to back up its debt.

18. CAPITAL INVESTMENT EXPENDITURES TO TOTAL REVENUES RATIO (CIETRR)

The % share of capital investment to total LGU revenues

FORMULA: Capital Investment Expenditures x 100

Total Revenues

BENCHMARK: CIETRR > average for the LGU income class to which the LGU belongs and should be stable if not increasing

19. NET OPERATING SURPLUS TO TOTAL LGU REVENUE RATIO (NOSTRR)

The ratio of LGU net operating surplus to total LGU revenues

FORMULA:
Net Operating Surplus (Deficit) x 100
Total Revenues

Net Operating Surplus/Deficit = Net Operating Income/(Loss) from Current Operations

BENCHMARK: NOSTRR > average for the LGU income class to which the LGU belongs and should be increasing in case of
operating surpluses and decreasing in case of operating deficits

20. UNCOMMITED CASH BALANCE TO TOTAL LGU EXPENDITURE RATIO (UCBTER)

The calculated figure reflects the uncommitted cash portion of government equity in the LGAS. This is roughly equivalent to a sort of
an annual financial reserve

FORMULA:
Uncommited Cash Balance x 100
Total Expenditures

Uncommitted Cash Balance = Amount Available for Appropriations/Operations

BENCHMARK: UCBTER > average for the LGU income class to which the LGU belongs and should be increasing
This indicator measures the collection of current and delinquent local revenues based on actual collections vis-
-vis the respective targets in all local revenue areas.

If the LGU is operating a local economic enterprise

Benchmark: 85% Collection of target in each local revenue source
Benchmark scoring by revenue source: 100% = 1; 95% but <100% = 0.75; 90% but <95% =
0.50; 85% but <90% = 0.25; <85% = 0
Formula: Collection Efficiency = (Collection/Target) x 100%
Computation: Formula to be applied per local revenue source; benchmark score to be summed up
to get total score
Data Source: eSRE; QRRPA (for real property tax only)
Weight Distribution (Points)
Revenue Source Province City Municipality
Real Property Tax 14 12 11
Business and Other Taxes 6 17 10
Fees and Charges 10 3 7
Economic Enterprise 5 3 7
Total 35 35 35

If the LGU is NOT operating a local economic enterprise

Benchmark: 85% Collection of target in each local revenue source
Benchmark scoring by revenue source: 100% = 1; 95% but <100% = 0.75; 90% but <95% = 0.50;
85% but <90% = 0.25; <85% = 0
Formula: Collection Efficiency = (Collection/Target) x 100%
Computation: Formula to be applied per local revenue source; benchmark score to be summed up to
get total score
Data Source: eSRE; QRRPA (for real property tax only)
Weight Distribution (Points)
Revenue Source Province City Municipality
Real Property Tax 16 13 13
Business and Other Taxes 7 17 13
Fees and Charges 12 5 9
Economic Enterprise 0 0 0
Total 35 35 35

Target Parameters

Real Property Tax

Collection RPT Current Year Collection + Prior Year (Basic) + Prior Year
Penalty (Basic) + Prior Year (SEF) + Prior Year Penalty (SEF)
Target (Total Current Collectibles x 80%) + (Cumulative Five-Year
Delinquencies x 35%)
Efficiency Collection / Target

RPT collection shall pertain to receipts from:

1.Current Year basic real property tax
2.Prior Year basic real property tax and penalties, if any
3.Current Year Special Education Fund levy
4.Prior Year Special Education Fund levy and penalties, if any
5.Properties acquired by the local government for want of bidder.

RPT target to be based on the Quarterly Report on Real Property Assessments, as reported by the local
assessors: 80% of current year collectibles + 35% of cumulative collectible delinquencies up to the last five (5)
years

Business & Other Taxes

Collection Tax on Business (Current Year) + Other Taxes (Current
Year)
Target Tax on Business (Prior Year) + Other taxes (Prior Year) x
Incremental Factor
Efficiency Collection / Target
Regulatory Fees and Service/User Charges
Collection Regulatory Fees (Current Year) + Service/User Charges
(Current Year)
Target (Regulatory Fees [Prior Year] + Service/User Charges [Prior
Year]) x Incremental Factor
Efficiency Collection / Target

Economic Enterprise
Collection Income from Economic Enterprise (Current Year)
Target Income from Economic Enterprise (Prior Year) x
Incremental Factor
Efficiency Collection / Target

Incremental Factor: to be based on the GDP and Inflation Rate and other adjustment factors, as may be
determined by the BLGF.
Issuance of Targets: No later than every May 31
Concurrence of Local Treasurers with the BLGF Targets: Upon issuance of the local revenue targets, local
treasurers may request for adjustment by reason of force majeure, civil disturbance, natural calamity or any
cause or circumstance, which legally prevents the treasurer from enforcing collection.