New guidelines set for SRE reporting

CEBU, Philippines - Local government units are ordered to adopt a modified format of statement of receipts and expenditures to remain transparent in their respective fiscal status.

In Joint Circular No. 2015-1, the Department of Budget and Management and Department of Finance have cited guidelines for SRE reporting as a way to monitor the financial performance of LGUs.

The DBM and DOF said they want "to adopt a more systematic format in the preparation of reports for submission by local government units to oversight member departments for the three-year period" of the SRE. LGUs are mandated to submit accurate and timely financial data.

SREs are prepared by local treasurers for the actual year and accountants and budget officers for the current and proposed budget years.

SRE is a financial report set by the Bureau of Local Government Finance to monitor the fiscal capacity, creditworthiness, expenditures and economic state of LGUs.

"To update the classification and treatment of accounts... to delineate the roles and responsibilities of the DBM, DOF and the local officials concerned in the preparation of the SRE," the new circular stated of the new guidelines' purposes.

SRE report checks LGUs' receipts which include proceeds from loans, sales of assets and income; and monitors expenditures such as investment outlays, loan payments and capital.  — Carlo S. Lorenciana (FREEMAN)