Question & AnswerQ&A (DBM-DOF-DILG JOINT MEMORANDUM CIRCULAR NO. 2018-1)
The primary purposes are to adopt a more comprehensive format for the Statement of Receipts and Expenditures (SRE) of LGUs, update the classification and treatment of accounts for preparing the SRE, and delineate the roles and responsibilities of DBM, DOF, DILG, and LGU officials in preparing LGU fiscal data.
All LGU financial statements and reports must be prepared consistent with the Revised Chart of Accounts for LGUs as prescribed under Commission on Audit Circular No. 2015-009 dated December 1, 2015.
The SRE must cover actual, current, and budget years financial data and use the classification and grouping of accounts as prescribed in the prescribed reporting formats (Annexes A and B of the JMC).
LGUs shall submit their SRE reports through the DOF-BLGF via the LGU Integrated Financial Tools (LIFT) within the timelines prescribed in the DOF-BLGF advisory.
The DOF-BLGF ROs review and monitor SRE reports and Quarterly Report on Real Property Assessment (QRRPA), validate accuracy, ensure timely submission, and provide technical assistance when necessary.
DBM ROs must encourage LGU budget officers to provide expenditure data, promote the use of LIFT for expenditure management, monitor compliance with submission deadlines in coordination with DOF-BLGF, and provide technical assistance.
Local chief executives are primarily responsible for ensuring the accuracy and timely submission of the QRRPA and SRE reports of their respective LGUs.
Local accountants must jointly certify with treasurers the actual receipts and expenditures, provide necessary financial data for SRE preparation, and city/municipal accountants must consolidate and submit component barangay financial statements.
The DILG facilitates LGU compliance with the preparation and submission of their SREs as stipulated in the Joint Memorandum Circular.
If adjustments to balances occur between the ending balance of the previous year and the beginning balance of the succeeding year, proper disclosure must be made regarding the nature and details of such adjustments.