FROM :

FAX NO.

06 Feb. 2014 11:36AM _P1_

REPUBLIC OF THEPHILIPPINES

DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT

DILG NAPOLCOM Center, EDSA corner Quezon Avenue, Quezon City

FEBRUARY 06, 20M

MEMORANDUM CIRCULAR
NO. 2014-13

TO

AIL PROVINCIAL GOVERNORS, CITY MAYORS, MUNTCIP4

MAYORS, AND DILG REGIONAL DIRECTORS

SUBJECT :

ISSUANCE OF 2012 SGH CERTIFICATES TO LOCA

GOVERNMENTS WITH "AFTER ASSKSSMJWr COMPLIANC1
FOR PURPOSES OF ACCESSING LOAN OR OTHER NATIONAL

Local Finance Circular No. 1-2012 of the Department of Finance (DOF) require

DILG certification on the Seal of Good Housekeeping (SGH) and Full Disclosure Policy w
par
t of documentary requir
ements f
or local government* in securing authority from DOT

to borrow money f
rom banks aM" 6\ er f
inancial institutions. Similarly, DILG
Memorandum Circular No. 20134$>6 requires SGH Certif
ication as one of the
documentary requirements for priority^lotal gover
nments in accessing project funds for
the Bottom-Up Budgeting Program (now called Grassroots Participatory Budget Process), and
die SALINTUBIG Program.
Pursuant to DILG Memorandum Circular No; 2012-078, the 2012 Seal of Good
Housekeeping is issued to local governments which passed the minimum criteria under

transparency and accountability framework, i.e, Unqualified or Qualified COA Audit

Opinion, and compliance with the Full Disclosure Policy (FDP), during the SGH
issessment period which lopks into the 2011 COA Audit Opinion, and 1" and 2nH quar
ter
?DP-postlng requirenients in 2012. respectively.
At the t
ime of assessment in 2012, there arc 225 LGUs (14 provinces, 29 cities and
82 municipalities) which did not pass the Seal of Good Housekeeping due to nonompliancc with the Full Disclosure Policy and/or COA Audit Opinion. Nevertheless,
here are cases where local governments complied and passed the SGIi criter
ia only after
ie assessment period, and request for SGH Cer
tificates for loan purposes or to access
Lher national program windows.

In response to this policy concern, this Depar

tment, through the Undersecretary

r Local Government, shall issue the 2012 SGH Certificate to a local government which
implied and passed the criter
ia after the 2Q}2 assessment period for loan purposes or
ccssing national program windows, subject to the following conditions:

@c&t\

-l 4i/* / 'I

_4a)M :

FAX NO. :

06 Feb. 2014 11:36m P2

@ A local government which complied with SGH criter

ia af
ter die ?0j?
assessment period and is requesting for SGH Cer
tificat
ion for purposes of
accessing loan or other national program windows, shall submit a letter-

request to the DILG Secretary (Thru: Undersecretary for Local Government)

for reconsiderat
ion;

@ Requesting-local government has to pass the following criter

ia:

(a) most recent COA Audit Certif

icate', as posted in COA website, stat
ing
Unqualif
ied or Qualif
ied Opinion;
(b) compliance with FDP posting requirements on Full Disclosure Policy
Portal for the last two (2) preceding quarters (e.g., ifrequest is within
the 4h quarter, requiredFDP compliance is on 2^ and 3^ quarters)
both criter
ia, as ver
if
ied by the Bureau of Local Government Supervision;
and"

(c) compliance with FDP posting requirements in three (3) conspicuous places
for the last two (2) preceding quarters as certified by the DILG Regional
Director and attested by *CSO representative.

This is to underscore, however, that.those' LGU-SGH passers af

ter the assessment
per
iod are not eligible to access the Perf
ormanceChallenge Fund.

For the informat

ion and guidance of all concerned.

vT^^pV^
MARROJ AS
SecrelJ

Tr

DILG-OSK OUTGOING 14-00214