Transparent and Accountable, Participative and Effective Local Governance

The Seal of Good Local Governance is an award, incentive, honor and recognition-based program for all local government units and is a continuing commitment for LGUs to continually progress and improve their performance across governance areas. It was institutionalized through the enactment of Republic Act 11292 or the SGLG Act. 

Potential passers were assessed and validated based on the following ten (10) governance areas, to wit : (1) Financial Administration and Sustainability; (2) Disaster Preparedness; (3) Social Protection and Sensitivity; (4) Health Compliance and Responsiveness; (5) Sustainable Education; (6) Business-Friendliness and Competitiveness; (7) Safety, Peace and Order; (8) Environmental Management; (9) Tourism, Heritage Development, Culture and the Arts; and (10) Youth Development. 

The Performance Challenge Fund, also known as the Seal of Good Local Governance Incentive Fund (SGLGIF), was institutionalized by virtue of RA 11292 otherwise known as the Seal of Good Local Governance Act of 2019. It is a Local Government Development Program managed by the SGLG Council. 

Originally established in 2010, the program serves as a performance-based reform program of the Department of the Interior and Local Government (DILG) that seeks to rationalize intergovernmental transfers of the national government to local government units (LGUs) and encourage the convergence of local development initiatives with national development agenda and priorities. 

The primary objective of the Award is to accord official recognition to the Sangguniang Panlungsod and the Sangguniang Bayan that excel in legislative laws that ultimately contribute to the attainment of desirable socio-economic and environmental management outcomes.

The Legislative Award for the Sangguniang Panlungsod and Sangguniang Bayan shall start in September 2006, and shall be implemented annually thereafter.