What is Full Disclosure Policy?

It is the government’s policy that requires certain 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.


Why is Full Disclosure Important?

Full Disclosure will:

  • promote honest, transparent, and orderly management of public funds
  • 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


What Laws Require Full Disclosure?

  • Section 352 of the Local Government Code: “..posting within 30 days from 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 preceding 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 90 of Republic Act No. 10147 (General Appropriation Act) FY 201, re, “Use and Disbursement of Internal Revenue Allotment of LGUs: “..Strict compliance with Sections 288 and 354 of RA No. 7160 and DILG Memorandum Circular No. 2010-83, entitled “Full Disclosure of Local Finances, and Bids and Public Offering”, is hereby mandated: Provided, that in addition to the publication or posting requirement under Section 352 of RA No. 7160 in three (3) publicly accessible and conspicuous places in the local government unit, the LGUs shall also post the detailed information on the use and disbursement, and status of programs and projects in the LGUs’ websites. Failure to comply with these requirements shall subject the responsible officials to disciplinary actions in accordance with existing laws.”
  • 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 a subject of an Audit Observation Memorandum, and eventually forms part of the Annual Audit Report or Management letter, if necessary.



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