FIFTHTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SEN!S55 -
S.B. No. _.:....::....::::...c",--
Introduced by Senator Franklin M. Drilon 
EXPLANATORY NOTE 
'11 
JAN 25 [)2 :44 
This legislative measure seeks to give full emphasis and thrust to the time honored 
principle that PUBLIC OFFICE IS A PUBLIC TRUST, and PUBLIC MONEY MUST BE FULLY 
ACCOUNTED FOR by the responsible public officer and employees. Public accountability of all 
funds and properties of the government, therefore, becomes a legal and mandated duty as it is 
the focal point of good governance. 
To be known as the "Disclosure Act on Local ,Transactions", the proposed bill amends 
Section 352 of Republic Act No. 7160, otherwise known as the Local Government Code of 
1991. 
The amendment introduced other items of expenditure and disbursement for posting, 
instead of a mere statement of income and expense being required to be posted. Thus, local 
transactions mandated to be posted or published include Annual Budget, Quarterly Statement of 
Cash Flows, Statement of Receipts and Expenditures, Trust Fund (PDAF) Utilization, Special 
Education Fund Utilization, 20% Component of the IRA Utilization, Gender and Development 
Fund Utilization, Statement of Debt Service, Annual Procurement Plan or Procurement List, 
Items to Bid, Bid Results on Civil Works, Goods and Services, and Abstract of Bids as 
Calculated. 
The timely and regular disclosure of local fiscal matters ensures the public that the public 
money is well spent on public service. Transparency reduces unfounded and biased criticisms 
by skeptics, and gradually builds and strengthens public trust and confidence by the people to 
their local leaders, an essential centerpiece of good governance. 
In view of the foregoing the urgent passage of the proposed measure is earnestly 
sought. 


FIFTHTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SEN~l~55 
S. B. No. __ ----'=--
'11 
JAN 25 P2 :44 
. 
. 
RECEIVED BY:-H''''''''_ 
Introduced by Senator Franklin M. Onion 
AN ACT MANDATING THE FULL DISCLOSURE BY THE LOCAL GOVERNMENT UNIT OF LOCAL BUDGET AND 
FINANCES, INCLUDING BIDS AND PUBLIC OFFERINGS, AMENDING SECTION 352 OF REPUBLIC ACT NO. 
7160, OTHERWISE KNOWN AS THE "LOCAL GOVERNMENT CODE OF 1991" AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: 
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Section 1. Short Title. This Act shall be known as the "Disclosure of Local Financial Transactions Act of 
2 
2011" 
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Section 2. Declaration of Policy. To uphold the time-honored principle that public office is a public trust, 
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local government officials and employees must at all times be accountable to the people, and shall 
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perform their duties with responsibility, integrity, loyalty, efficiency and competence, for public interest 
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must prevail over personal interest. 
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Section 3. Section 352 is hereby amended and shall read as follows: 
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Section 352. {AJ FULL DISCLOSURE AND MANDATORY POSTING OF LOCAL BUDGET AND 
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FINANCES, 
EXPENDITURES, DISBURSEMENTS, FUNDS UTILIZATION, BIDS AND PUBLIC 
! 
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OFFERINGS. ALL PROVINCIAL GOVERNORS, CITY MAYORS AND MUNICIPAL MAYORS SHALL 
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MAKE A FUll DISCLOSURE AND CAUSE THE POSTING' OF THE FOLLOWING FISCAL ITEMS: 
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I. 
ANNUAL BUDGET 
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II. 
QUARTERLY STATEMENT OF CASH FLOWS 
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III. 
STATEMENT OF RECEIPTS AND EXPENDITURES 
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IV. 
TRUST FUND (PDAF) UTILIZATION 
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V. 
SPECIAL EDUCATION FUND UTILIZATION 


, 
1 
VI. 
20% COMPONENT OF THE IRA UTILIZATION. 
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VII. 
GENDER AND DEVELOPMENT FUND UTILIZATION 
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VIII. 
STATEMENT OF DEBT SERVICE 
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IX. 
ANNUAL PROCUREMENT PLAN OR PROCUREMENT LIST 
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X. 
ITEMS TO BID 
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XI. 
BID RESULTS ON CIVIL WORKS, GOODS AND SERVICES 
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XII. 
ABSTRACT OF BIDS AS CALCULATED 
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(B) 
LOCAL TREASURERS, ACCOUNTANTS, BUDGET OFFICERS AND OTHER ACCOUNTABLE 
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OFFICERS SHALL, WITHIN THIRTY (30) DAYS FROM THE COMPLETION OF THE PREPARATION 
I 
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OF THE ABOVE FISCAL ITEMS IN ACCORDANCE WITH 
THE FORMS, PROCEDURES, AND 
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SCHEDULES PRESCRIBED BY THE DEPARTMENT OF BUDGET AND MANAGEMENT AND THOSE 
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THAT MAY BE JOINTLY ISSUED WITH THE COMMISSION 
ON 
AUDIT AND OTHER 
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RESPONSIBLE AGENCIES, POST THE SAME IN THREE (3) PUBLICLY ACCESSIBLE AND 
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CONSPICUOUS PLACES THE LOCALITY, AND IN ADDITION, IN ANY ONE OF THE MEANS 
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PROVIDED HEREIN: 
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I. OFFICIAL WEBSITE OF THE CONCERNED LOCAL GOVERNMENT UNIT, OR IF THERE BE NONE 
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AVAILABLE, THE OFFICIAL WEBSITE OF THE PROVINCE HAVING TERRITORIAL JURISDICTION 
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OVER THE SAID LOCAL GOVERNMENT 
UNIT; 
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II.PUBLICATION IN A NATIONAL NEWSPAPER OF GENERAL CIRCULATION. 
THE POSTING 
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REQUIREMENT IN PUBLIC PLACES AND IN THE OFFICIAL WEBSITE SHALL BE CONTINUOUS 
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UNTIL THE NEXT REPORTORIAL UPDATE, WHENEI{ER APPLICABLE, IS ACCOMPLISHED AND 
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PREPARED FOR POSTING. 
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(C) ALL PROCUREMENT-RELATED ACTIVITIES AND REQUIREMENT OF THE CONCERNED LOCAL 
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GOVERNMENT UNIT, SUCH AS THE INVITATION TO BID, NOTICE OF AWARD, NOTICE TO 


• 
, 
1 
PROCEED, AND APPROVED CONTRACT 
IN 
PROCURING 
ENTITY'S 
PREMISES, 
SHALL 
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STRICTlY COMPLY WITH THE POSTING AND PUBLICATION 
REQUIREMENTS 
UNDER 
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REPUBLIC ACT NO. 9184, OTHERWISE KNOWN. AS THE GOVERNMENT PROCUREMENT 
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REFORM ACT, WHEREIN POSTING AND PUBLICATION SHALL BE MADE IN A NEWSPAPER OF 
• 
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GENERAL CIRCULATION 
AND IN THE WEBSI~E OF THE PROCURING ENTITY. 
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Section 4. Criminal liability and Administrative liability. The penalty of imprisonment of not less than 
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one (1) month but not more than six (6) months, and/or fine not exceeding the equivalent of six (6) 
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months' salary or suspension not exceeding one (1) year, shall be imposed, in addition to the imposition 
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of administrative sanctions, upon any public officer or employee who shall violate any of the provisions 
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of this Act. 
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Section 5. Separability Clause. If any provision of this Act is declared unconstitutional or invalid, such 
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sections or parts not affected thereby shall remain valid and subsisting. 
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Section 6. Repealing Clause. All decrees, executive orders, proclamations, rules and regulations, or 
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parts thereof, inconsistent herewith are hereby repealed or modified accordingly. 
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Section 7. Effectivity Clause. This Act take effect fifteen (1,5) days after its complete publication in at 
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least two (2) national newspapers of general circulation. 
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Approved,