blgf treasurer certication & performance evaluation system ver 1

Key discussion results among BLGF top management with technical advice from:

Norman R. Ramos

LGU Finance Adviser

ADB TA 7451

1/7/2011 2

BLGF Treasurer Certification and Performance Evaluation System

Enhance the professionalism and

productivity of local treasurers in the

Philippines so that they may better serve

their LGUs and the public.

Competency Certification and Re-certification System

Performance Evaluation SystemEquip treasurers with necessary skills

to achieve performance targets

BLGF-provided support tools like

official calendar of local treasury

operating dates and deadlines

Assures the availability of a pool of competent local treasurers

1. Local treasurer competency certification and re-certification system.

2. Local treasurer performance evaluation system.

3. BLGF-provided support tools

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Local revenue and resource mobilization

programs

Fiscal and financial accountability

Implementation of special projects

LGU capacity building

Internal administration

Last 4 result areas are all directed

towards the attainment of the

1st result area

Defined outputs seek to maximize

LGU revenue potential

41 Performance standards except

for collection efficiency are all

compliance to process-oriented

rather than results-oriented

Local treasurers consistently

rating high in complying with

set treasury processes but local revenue results vary

greatly

5 BLGF Key Result Areas

41 performance standards for

1,695 treasurers is hard for BLGF to tract much more

validate

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Maximize revenue potential of LGU

1. Collect all current local revenues due

4. Maintain a reasonable level

of receivables

2. Cost-effective collection efforts

5. Optimum cash management

3. Stable and reliable local

revenue growth

BLGF set 90% Target collection efficiency for local revenues

LGFPMS Benchmark Cost of Collection/

Php of Local Revenue Collected

Target rate of return on average free cash

for the year

LGFPMS benchmark for per capita local

revenue growth

Target collection rate for arrears including

proceeds from property auction

Proposed performance

standards will force treasurers to focus

on bottom line results

Support reminder tools provided by

BLGF and competencies

imparted to them by the competency

certification system

BLGF set processes will be used more

creatively and effectively to

produce desired bottom line results

Less variation in revenue results

among local treasurers of similar

performance rankings

Attainment of LGFPMS benchmark

indicators

Arrears in the current year collected in the

following year

121 day Treasury bill rate

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 InstitutionsP

rep

ara

tory

Ph

as

eIm

ple

me

nta

tio

n P

ha

se

Start

DOF issues

Memo/Circular

for

Implementation

Civil Service

Commission

(CSC)

Local

Government

Academy

(LGA)

BLGF

Selection

Board

Phil Asso. Of

Local

Treasurers &

Assessors

(PHALTRA)

Academe

BLGF approves

system & IRR

BLGF drafts final

details and IRR

for Competency

Certification

Process

Consultant

inputs

BLGF

EXECOM

External Agency

Technical Inputs

Detailing out of

Competency

fields

Screening

process & Test

design &

construction incl.

qualification

standards

Design of

Competency

build-up

curriculum

Test

Administration

and Competency

Certification

Certification

Result Utilization

Implementation of

Competency

Maintenance/

Upgrading

Recommendationsi

ncluding sanctions

BLGF HR

Personnel

BLGF HR

Personnel

BLGF

Selection

Board

BLGF

EXECOM

Recommendatio

ns including

sanctions

End

Competency

Certification

Implementation

of Competency

Build-up

Those who have undergone the

competency build-up programs will

be tested. Those who fail will be

coached to undertake further

competency build-up

Participating

Colleges

And

Universities

Solicited via a

Study Committee

Accredited

Programs

Resources

& Facilities

LGA

Network

1st

2 years will be

directly handled

by the CSC.

Certification

Committee within

PHALTRA

BLGF Promotion

Board

representative

CSC representative

After 2 years, all active

PHALTRA members will all be

certified local treasurers so

control of the process can

already be turned over to a

PHALTRA certification

committee with oversight

roles for BLGF and CSC by

the 3rd

or 4th

year

Oversight role

Prof.

Regulatory

Commission

(PRC)

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 Career PathInterface between local treasurer competency certification and performance evaluation systems

Adva

nced

Com

peten

cy Le

vel

Inter

media

te Co

mpete

ncy L

evel

Basic

Com

peten

cy Le

vel

ProvinceCityMunicipality

5th

Class

6th

Class

4th

Class

5th

Class 5th

Class

4th

Class4th

Class

3rd

Class 3rd

Class 3rd

Class

2nd

Class 2nd

Class 2nd

Class

1st

Class

1st

Class

Special and

Highly Urbanized

Cities

1st

Class

LGU class promotion

LGU class promotion LGU class promotion LGU class promotion

LGU class promotion LGU class promotion LGU class promotion

Comp

etenc

y

base

d Elib

ility

LGU type

promotion

LGU type

promotion

LGU type

promotion

LGU type

promotion

LGU type

promotion

LGU type

promotion

LGU type

promotion

LGU type

promotion

LGU type promotion

LGU class promotionLGU type promotion

Comp

etenc

y

base

d Elib

ility

Perfo

rman

ce ba

sed m

ovem

ent

Perfo

rman

ce ba

sed m

ovem

ent

Performance

rating in

previous level

Performance

rating in

previous level

Performance based

movements

Performance based

movements

Performance based

movements

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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blgf treasurer certication & performance evaluation system ver 1

Documents

local revenue results

local laws

certified local treasurer

recertification system

lgu financial performance

current local revenues

performance indicators

performance benchmarks