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Region 10 Statistical Trend of LGU Compliance with Good Financial Housekeeping (CY 2011-2023)

The Good Financial Housekeeping (GFH), formerly the Seal of Good Housekeeping (SGH), promotes transparency and accountability in local government operations by assessing financial housekeeping through compliance with Commission on Audit's accounting and auditing standards and the Department's Full Disclosure Policy (FDP). Started in 2011 (piloted in 2010), recipients of the Seal can access the Performance Challenge Fund (PCF) to support local development initiatives in line with national government goals.

In 2014, the DILG transformed the SGH into the Seal of Good Local Governance (SGLG). The SGLG recognizes the excellent performance of provincial, city, and municipal governments, not only in financial housekeeping but also in other areas that directly benefit the public. Recipients of the SGLG are eligible to access the PCF. With this change, the SGH evolved into GFH. Once a Local Government Unit (LGU) is recognized as a GFH passer, they can use this status as a requirement for accessing other national program opportunities.

For an LGU to qualify for the GFH, it must satisfy the following criteria:

The most recent COA Audit Opinion is Unqualified or Qualified based on the annual audit report on the COA website.
Compliance with the Full Disclosure Policy requirements on the timely and complete posting of required financial documents in three (3) conspicuous places and in the FDP Portal.

Below is the statistical analysis of GFH Passers in the region from 2011 to 2023.

Figure 1. Percentage of Region 10 GFH Passers and Post-Assessment Passers per Province from 2011 to 2023

Figure 1 displays the percentages of GFH passers, including the post-assessment passers, for five provinces from 2011 to 2023. Notice there are no data for the years 2013, 2015, and 2020; there were no assessments during these years.

Similar to all provinces, Bukidnon and Misamis Oriental exhibit an initial dip in 2012, followed by a steady rise, maintaining 90% and above passing rates from 2014 onwards. The data shows consistency in later years, indicating effective financial management practices.

Camiguin's trend stabilizes at high percentages post-2014, then fluctuates slightly in 2018 before stabilizing again.

Lanao del Norte starts with lower percentages, shows improvements around 2014, then fluctuates slightly in 2016 and 2017 before stabilizing.

Misamis Occidental shows a significant dip in 2012 but recovers well in the following years, maintaining an 80% and above passing rate.

Despite some initial fluctuations in 2012, most provinces achieved and maintained high GFH pass rates, especially from 2019 onwards, with passing rates close to or at 100%. The data imply a positive trend in adherence to good financial housekeeping standards among these provinces.

As for the HUCs, both cities have demonstrated periods of significant improvement, though Iligan City's performance has been more inconsistent compared to Cagayan de Oro City. However, both cities have achieved and maintained a 100% pass rate from 2018 onwards, showing recent consistency in meeting GFH standards.

Since 2018, the DILG has conducted post-assessments on non-passer LGUs. As shown in Figure 3, the number of GFH passers (in blue) forms the majority each year, while post-assessment passers (in orange) fill in the remaining portion to ensure the total number of passers remains stable from 2018 to 2023. The total number of passers (GFH passers plus post-assessment passers) each year remains close to 90, with slight variations.

From 2022 to 2023, the total number of LGUs that passed is 98, or 100%. In both years, 8 non-passers eventually passed after the post-assessment.

As shown in the table, the reason for LGUs not passing the GFH is mostly due to the requirement of the FDP. Either they were late in posting or uploading, or did not post at all, the required financial documents in three conspicuous places and on the FDP Portal.

Notice that Cagayan de Oro City did not have issues with their COA Audit Opinion or FDP, as they were passers for the last three consecutive years.

With this data in hand, we kindly request your assistance in monitoring LGUs to ensure compliance with the Full Disclosure Policy, aiming for a 100% passing rate during the GFH assessments.

Resources:

1. Region 10 Good Financial Housekeeping (GFH) Passers from 2011 to 2023 (Statistical Tables)

2. Summary of 2023 Good Financial Housekeeping Passers after Assessment Compliance Passers as of April 30, 2024

3. Summary of 2023 Good Financial Housekeeping Passers

4. Passers for CY 2022 Good Financial Housekeeping After Assessment Compliance as of July 10, 2023

5. CY 2022 Good Financial Housekeeping Passers

6. Additional Passers for CY 2021 Good Financial Housekeeping as of May 27, 2022

7. 2021 Good Financial Housekeeping Passers as of November 5, 2021

8. 2019 Good Financial Housekeeping Passers

9. Official List of 2018 Good Financial Housekeeping Passers

10. 2017 Good Financial Housekeeping Passers

11. 2016 Good Financial Housekeeping Passers