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WHAT IS FULL DISCLOSURE POLICY?

The Full Disclosure Policy is a government’s policy that requires local officials of provinces, cities, and municipalities to fully disclose particular financial transactions of the LGU to keep their constituents informed of how the LGU budget is managed, disbursed and used.

IMPORTANCE OF FULL DISCLOSURE

• Help minimize, if not totally prevent corruption and misuse of public funds
• Increase the people’s awareness of the available public funds and the allocated amount for development projects in their localities
• Promote honest, transparent, and orderly management of public funds

ROLE OF DILG:

• Help the government ensure maximum compliance to FDP
• Guide those concerned on the proper FDP procedures and processes
• Recommend sanctions against non-complying officials
• Implement a reward and recognition system for complying officials through its Performance Challenge Fund (PCF) and Seal of Good Housekeeping Awards

Where Can LGUs Post their Financial Documents?

1. For a Provincial or City Government, financial documents are to be posted through the following means:
   • LGU Website; AND
   • At least three (3) publicly accessible and conspicuous places within the province or city, OR, to be published in a newspaper of general circulation in the territorial jurisdiction of the local government unit.
2. For a Municipal Government, financial documents are to be posted through the following means:
   • LGU Website, if any; OR
   • At least three (3) publicly accessible and conspicuous places within the province or city; OR
   • To be published in a newspaper of general circulation in the territorial jurisdiction of the local government unit.

WHAT LAW REQUIRES FULL DISCLOSURE?

• Section 352 of the Local Government Code: " ... posting within 30 days from the end of each fiscal year in at least three publicly accessible and conspicuous places in the local government unit, a summary of all revenues collected and funds received, including the appropriations and disbursements of such funds during the preceeding fiscal year ... "
• Republic Act No. 9184, known as the Government Procurement Reform Act: " ... posting of the Invitation to Bid, Notice to Proceed at Approved Contract in procuring entity's premises, in newspapers of general circulation, the Philippine Government Electric Procurement System (PhilGEPS) and the website of the procuring entity."
• Section 84 of Republic Act No. 10352 (General Appropriation Act) FY 2013: "Use and Disbursement of Internal Revenue Allotment of LGUs stating: " ... Strict compliance with Section 288 and 354 of RA No. 7160 and the Full Disclosure Policy relative to the posting of local budget and finances, bids and public offerings and status of programs and projects, including the utilization of the local disaster and risk reduction and management fund, in three (3) conspicuous places in the local government unit and in the Full Disclosure Policy Portal, is hereby mandated."

Commission on Audit Internal Memorandum dated October 8, 2010, enjoining concerned COA officials and auditors to monitor management's compliance to DILG Memorandum Circular 2010-83, and any deviation therefrom or non-compliance therewith shall be subject of an Audit Observation Memorandum and eventually forms part of the Annual Audit Report or Management letter, if necessary.

ASIDE FROM THE PORTAL, WHERE SHOULD THE DOCUMENTS BE POSTED?

The documents should also be posted in at least three (3) conspicuous places. Conspicuous places refer to the provincial capitol, city hall, municipal hall, barangay hall, and government-owned facilities to include, but not limited to, social center, gymnasium, auditorium, manpower development center, training center, transport terminal, public market, public school, health station or center and hospital.

Likewise, such required documents may also be posted in privately-owned buildings or facilities where the general public usually converges, including those owned by religious groups, and the Chamber of Commerce, subject to their consent, provided that the cost of installing a bulletin board for the purpose shall be borne by the concerned local government.

HOW OFTEN SHOULD THE DOCUMENTS BE POSTED IN THE PORTAL AND IN OTHER MEDIA?

WHAT ARE THE PENALTIES FOR NON-COMPLYING LGUS?

Concerned local officials may be SUSPENDED or REMOVED from office on the ground of gross negligence or dereliction of duty in accordance with Section 60 of the Local Government Code of 1991.