Pursuant to its mandate, the Bureau of Local Government Finance (BLGF) thru the Local Government Loans and Review Division (LOANS) reviews and processes loan applications, issuance of Certificate on Debt Service Ceiling and other credit facilities of local government units, as provided for under P.D. 752, including assessment loans under PD 1002. Accordingly it monitors payment of loan amortizations and apply administrative sanctions or legal remedies in case of defaults on repayments.

The procedure below defines the steps to be undertaken in the processing of loans under PD 1002 for Tax mapping Project and General Revision of Real Property Assessment and Computerization of Assessment Data

Availability of Service: Monday to Friday from 8:00AM to 5:00 PM except on holidays.

Clientele         : Local Government Units (LGUs) – Provinces, Cities and Municipalities nationwide

How to Avail of the Service:
STEP
 Customer / Client Service Provider (Offices / Units of BLGF)
Duration
of Activity
(Under
Normal
Circums)
 Division / Person In-Charge
Fees
 Form / Document
1st Release (50% of the approved loan)
1 Local Chief Executive submits a loan application together with the Project Study and Action Plan (PSAP) and documentary requirements   30 minutes   None Loan Application together with all the required supporting documents (refer to attached list of requirements per specific project
2   Records incoming documents and routes to concerned division (LOANS) 20 minutes Administrative Aide VI None Logbook
3   Receives documents and affix initials on logbook 20 minutes Action Officer None Loan Application together with all the required supporting documents
4   Checks, reviews and analyses PSAP and supporting documents 1 day Action Officer None Loan Application together with all the required supporting documents
5   Prepares necessary computations of proposed project cost 2 days Action Officer None  
6   Reviews action taken on the loan application 1 day Division Chief None  
7   Prepares and sends letter for conformity of the project cost to Assessor and Treasurer of applicant LGU 1 day Action Officer None  
8   After completion of all requirements and review is completed, PSAP is forwarded to the Office of the Executive Director for approval or disapproval 1 day Action Officer None Loan Application together with all the required supporting documents – Reviewed
9   Approves or disapproves PSAP 2 days Executive Director None  
10   When recommendation is for approval:

Contract of Loan is sent to the Local Government Unit concerned for signature of the local chief executive together with their respective treasurer and assessor as witnesses

 1 day Action Officer None Contract of Loan
11   Upon return of the Document to BLGF (LOANS):

The Contract of Loan together with the PSAP and supporting documents are forwarded to the Deputy Executive Director (Operations) for review

 1 day Action Officer None Contract of Loan and PSAP
12   Reviews Contract of Loan and PSAP forwards the same to Executive Director for signature 2 days Deputy Executive Director for Operations None Contract of Loan and PSAP
13   Approves / Disapproves Contract of Loan 2 days Executive Director None  
14   Upon approval:

Recommends / prepares actions / vouchers on request for the 50% of the approved loan representing the 1st release of the loan proceeds

 1 day Action Officer   Vouchers
15   Reviews actions / vouchers on requests for release of loan proceeds (affix initials on voucher) 2 days Deputy Executive Director for Operations None Vouchers
16   Approves / Disapproves Actions / vouchers for release of loan proceeds 2 days Executive Director None Voucher
17   Upon approval :

Submits voucher to Cash Unit for the preparation of Check

 1 day Action Officer None Voucher
18   Prepares check for the loan proceeds 1 day Cashier None Check
19   Signs check for the loan proceeds 2 days Executive Director None  
20   Releases Check 1 day Cashier None Check
21   On Disapproval of Loan:

This is properly communicated to LGU concerned stating therein reasons for disapproval

 2 days Executive Director   Communication letter
2nd Release (30% of the approved loan )
22 Local Chief Executive submits request for the 2nd release of loan proceeds including:

  • Report of actual expenditure of the project duly certified by both the treasurer and assessor and treasurer concerned
  • Report of actual accomplishment of the project duly certified by both the treasurer and assessor concerned
   30 minutes   None Request for 2nd release and required reports (Report of Actual Expenditure and Report of Accomplishment
23   Reviews / Analyzes report of actual Expenditures and accomplishment 1 day Action Officer None Request for 2nd release and required reports
24   Prepares necessary action / findings on accomplishment and expenditure reports 1 day Action Officer None Report on Findings on accomplishment and expenditure reports
25   Reviews report findings 1 day Division Chief None  
26   Inspect / evaluates on-going projects 5 days Evaluation Team None  
27   Prepares / submits evaluation reports 1 day Evaluation Team None Evaluation Report
28   Prepares necessary actions on findings / observations / recommendations 1 day Action Officer None Action Taken
29   Recommends release / suspension of 2nd release 1 day Action Officer None Recommendation for release or suspension of 2nd release
30   Reviews action taken on findings / observations and the recommendation for release or suspension of 2nd release (affix initials). Forwards request to Executive Director 2 days Deputy Executive Director None  
31   Approves or disapproves recommendation 2 days Executive Director None  
32   Upon approval:

Recommends / prepares actions / vouchers on request for the 30% of the approved loan representing the 2nd release of the loan proceeds

 1 day Action Officer   Vouchers
33 – 38   Follow the same procedure from Step 15 to 21        
39   On Disapproval of Loan:

This is properly communicated to LGU concerned stating therein reasons for disapproval

 2 days     Communication Letter
3rd Release � (20% of the approved loan)
40 Local Chief Executive submits request for the 3rd release of loan proceeds including :

  • Report of actual accomplishment of the project duly certified by the assessor concerned that the project financed by the loan is at least 75% completed and duly attested by the LGU Chief Executive (refer to attachment)
  • Report of actual expenditure covering the 1st and 2nd release jointly signed by the assessor and treasurer (refer to attachment)
   30 minutes   None Request for 3rd release and required reports (Report of Actual Expenditure and Report of Accomplishment)
41   Reviews / Analyzes reports of actual expenditures and accomplishment 1 day Action officer None Request for 3rd release and required reports
42   Prepares necessary action / findings on accomplishment and expenditure reports 1 day Action officer None Report on Findings on accomplishment and expenditure reports
43   Reviews report findings 1 day Division Chief None  
44   Inspect / evaluates on-going projects 5 days Evaluation Team    
45   Prepares / submits evaluation reports 1 day Evaluation Team   Evaluation Report
46   Prepares necessary actions on findings / Observations / recommendations 1 day Action officer None Action Taken
47   Recommends release / suspension of the final 20% release 1 day Division Chief None Recommendation for release or suspension of 2nd release
48   Reviews action taken on findings / observations and the recommendation for release or suspension of 3rd release (affix initials). Forwards request to Executive Director 2 days Deputy Executive Director None  
49   Approves or disapproves recommendation 2 days Executive Director None  
50   Upon approval of the recommendation ;

Recommends / prepares actions / vouchers on request for the 20% of the approved loan representing the 3rdrelease of the loan proceeds

 1 day Action Officer None Vouchers
51 – 56   Follow the same procedure from Step 15 to 21        
57   On Disapproval of Loan:

This is properly communicated to LGU concerned stating therein reasons for disapproval

 2 days Action Officer None Communication Letter
END of TRANSACTION