The Department of Finance (DOF) is undertaking a full performance appraisal of provincial, city and municipal treasurers and assistant treasurers across the country this year.
Finance Secretary Cesar V. Purisima issued Department Order No. 6-2015 dated 20 January 2015 institutionalizing the personnel performance standards, metrics, and appraisal system for treasurers and assistant treasurers in support of the DOF’s mandate of supervising local government treasury operations.
“Local treasurers and assistant treasurers serve constituents better in a results-oriented performance culture. We want to elevate the local treasury profession and help local chief executives get the best possible treasurers using merit and performance as the key decision factors,” Secretary Purisima emphasized.
The Secretary of Finance has appointing and disciplining authority over all provincial, city and municipal treasurers and assistant treasurers, pursuant to Sec. 470 and Sec. 471 of Republic Act No. 7160 (Local Government Code).
The DOF will use the results of the performance appraisal as basis for appointment and other personnel action, such as promotion, renewal of designation and extension of service, capacity building, and awards and recognitions.
The annual performance appraisal, which will be undertaken by the Bureau of Local Government Finance (BLGF) beginning June this year, forms part of the good governance and transparency reform agenda of Secretary Purisima to improve the revenue generation efforts of LGUs.
“This performance appraisal is the first of its kind. It will apply to all local treasurers and assistant treasurers, whether permanent or designate. But those whose service rendered is less than six months will be exempt from the evaluation,” BLGF OIC Executive Director Salvador del Castillo clarified.
The regular performance appraisal will measure a treasurer’s achievement of the operational performance goals (OPGs) or those indicators pertaining to local revenue generation and expenditure management. Competency performance goals (CPGs) or those behavioral and other non-technical dimensions of local treasury work will also be evaluated.
Local treasurers and assistant treasurers who fail to meet the benchmarks will be given assistance to improve performance, but if the results continue to be unacceptable, the DOF will institute the appropriate administrative action.
Failure to pass two consecutive performance appraisals could lead to removal of a local treasurer or assistant treasurer from the service.
In 2014, the DOF noted that 7 in every 10 local treasurers failed to submit their income and expenditure reports on time to the BLGF.