Legal basis and incorporated framework
- The decree is anchored on the President’s constitutional authority to decree and order laws “as part of the law of the land” (Preamble).
- Section 1 ties the regional setup to the regions created under Presidential Decree No. 1, as amended by Presidential Decrees Nos. 742, 773 and 879.
- Section 1 excludes the Metropolitan Manila coverage defined under Presidential Decree No. 824.
- Section 12 links the initial funding to internal revenue allotments to local governments under Presidential Decree No. 144, as amended.
- Sections 5 and 6 link appointments and qualifications to the Career Executive Service and its governing rules “in the manner provided for by law” for Career Executive Service Officers.
Policy and intent for regional finance supervision
- The decree establishes that development administration requires closer coordination and linkages between national departments and agencies at regional and local levels (Preamble).
- The decree affirms the Department of Finance’s role in improving local treasury and assessment operations through policy adoption and enforcement (Preamble).
- The decree directs that closer regional development support requires Department of Finance regional offices to provide regional orientation and direction for direct supervision over local treasury and assessment offices (Preamble).
Regional coverage and office location
- Section 1 requires the Department of Finance to establish a regional office in each region created under Presidential Decree No. 1, as amended by Presidential Decrees Nos. 742, 773 and 879.
- Section 1 exempts Region IV and instead treats Metropolitan Manila differently by covering the four (4) cities and thirteen (13) municipalities of Metropolitan Manila as defined under Presidential Decree No. 824.
- Section 2 requires each regional office to be located in the regional centers designated in the cited presidential decrees.
- Section 2 provides that each regional office’s jurisdiction covers the groups of provinces, cities and municipalities placed in its area of jurisdiction in those decrees.
Organization, staffing, and appointment powers
- Section 3 authorizes the Secretary of Finance to prepare and adopt the organizational structure and staffing pattern for each regional office, subject to existing laws and regulations on position classification, rankings, and pay ranges.
- Section 4 creates, for each regional office, the positions of:
- one (1) Regional Director for Local Government Finance;
- one (1) Assistant Regional Director for Local Treasury Operations; and
- one (1) Assistant Regional Director for Real Property Assessment Operations.
- Section 4 places these positions under the Career Executive Service.
- Section 5 requires the Regional Directors and Assistant Regional Directors to be appointed by the President, upon recommendation of the Secretary of Finance, following the law for Career Executive Service Officers of the same rank.
- Section 5 authorizes the Secretary of Finance, pending appointment and/or qualification, to designate in an acting capacity qualified officials and personnel from the Department, and/or officials from the ranks of provincial/city treasurers, assessors, and their assistants.
Qualification standards and rank/compensation rules
- Section 6 prohibits appointment as a regular Regional Director or Assistant Regional Director unless the appointee is:
- a citizen of the Philippines;
- of good moral character;
- a holder of a college degree (preferably in law, engineering, commerce or public administration) from a recognized school;
- a first grade civil service eligible or its equivalent;
- with at least three (3) years experience in local government finance, real property assessment and/or local treasury work;
- meeting the minimum qualification requirements prescribed for Career Executive service Officers of equivalent rank; and
- possessing other qualifications or special skills the Secretary of Finance may require.
- Section 7 assigns the Regional Director for Local Government Finance to Career Executive Service Rank IV.
- Section 7 assigns the Assistant Regional Directors to Career Executive Service Rank V.
- Section 7 requires that Regional Directors and Assistant Regional Directors receive compensation and emoluments authorized under existing laws or regulations for officers in the same CES ranks.
- Section 7 sets a minimum pay relationship: the salary of the Regional Director must be at least one step higher than the salary actually received by the highest paid Provincial or City Treasurer or Assessor in the region.
- Section 7 provides that acting appointees continue receiving salaries authorized for their regular positions, and may receive additional compensation/allowances authorized by the Secretary.
- Section 7 caps additional compensation for acting appointees: such additional compensation shall not exceed thirty per cent (30%) of the basic salary actually received by the officer involved.
Personnel detailing and functions of regional offices
- Section 8 authorizes the Secretary of Finance to approve the detail of qualified personnel from the Department of Finance or from local treasury and assessment offices to ensure adequate technical and clerical manpower for efficient operations.
- Section 9 places regional offices under the general supervision of the Secretary of Finance.
- Section 9 requires regional offices to supervise and coordinate local treasury and assessment operations within the region for proper implementation of laws, decrees, rules, regulations, and Department of Finance administrative issuances.
- Section 9 requires regional offices to establish liaison and linkages with other regional offices and national government agencies in the region for closer coordination in executing national/regional plans or programs.
- Section 9 requires regional offices to coordinate in the prosecution of local development projects.
- Section 9 requires regional offices to undertake research and studies to formulate and execute policies promoting the financial stability and growth of local governments.
- Section 9 requires regional offices to review the annual and supplemental budgets of provinces and cities within the region, following existing law and any policy guidelines and/or regulations promulgated by the Secretary of Finance.
- Section 9 requires regional offices to supervise and monitor the execution of tax mapping and other real property assessment prefects of local units in the region.
- Section 9 requires regional offices to conduct a preliminary review of individual schedules of values of real property prepared by provincial and city assessors, consolidate them, and submit for approval by the Secretary of Finance an integrated schedule of real property values for the region.
- Section 9 requires regional offices to coordinate local treasury and assessment offices in tax collection drives and tax information and education campaigns.
- Section 9 authorizes regional offices, subject to approval by the Secretary of Finance, to conduct regional training programs, seminar-workshops, conferences, and allied activities primarily for improving administrative and technical skills in local treasury and assessment offices.
- Section 9 authorizes regional offices to perform other functions prescribed by law or delegated/authorized by the Secretary of Finance.
Manuals and internal finance service structure
- Section 10 requires the Secretary of Finance to issue field operations manuals as necessary for administration and conduct of operations of Department regional offices and of local government treasury and assessment offices.
- Section 11 makes the Secretary of Finance and the Undersecretary for Administration responsible for general management and direct supervision over Department regional offices through the proper exercise of Department powers and functions.
- Section 11 elevates the Local Government Finance Service into an office named the Office of Local Government Finance.
- Section 11 converts the Finance Service Chief position into a Director assigned to CES Rank II.
- Section 11 creates:
- an Assistant Director for Local Fiscal Operations (CES Rank III); and
- an Assistant Director for Real Property Tax Administration (CES Rank III), and places these positions within the Career Executive Service.
- Section 11 assigns to the Office of Local Government Finance the duties, under general direction, to assist in direct executive supervision over regional offices and local government financial affairs and revenue-raising units, and to formulate policies fostering sound fiscal management.
- Section 11 requires the Office of Local Government Finance to provide technical assistance to local governments in executing policies, preparing fiscal plans and programs, enacting tax ordinances, real property valuation, and utilizing credit facilities to enhance financial stability and growth.
Implementation rules and appropriations
- Section 13 directs the Secretary of Finance to issue the rules and regulations necessary for proper implementation of the decree.
- Section 12 appropriates PHP 5,000,000.00 for the period from the decree’s effectivity up to December 31, 1977 from the unallocated balance of internal revenue allotments to local governments after distribution of individual shares under Presidential Decree No. 144, as amended.
- Section 12 requires that for every calendar year thereafter starting January 1, 1978, the sum of ten million pesos (10,000,000.00) or so much as may be necessary for personal services, maintenance and other operating expenses and equipment outlays of the regional offices be included in the appropriations of the Department of Finance in the General Appropriations Law.
- Section 12 authorizes the Department of Finance to use portions of appropriations for establishing and operating the regional offices, or sums appropriated in Presidential Decree No. 1050 for the Office of the Secretary and/or savings therein, as needed for salaries and sa