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Republic of the Philippines Province of Cotabato

Municipality of Kabacan

MESSAGE

It is my pride to present to you this report for Profile Year 2011 encompassing

the accomplishments of the Local Government Unit of Kabacan, the thrusts and

directions that my administration would be pursuing this year.

Consequently, the result of the LGPMS is a laudable performance since all of

us in the local government unit act upon the challenges towards achieving our vision

and mission.

Our municipality is truly moving forward in gaining progress in socio-economic

condition, quality education, health and protective services, infrastructure support ,

agriculture production, and environmental protection.

Let me take this chance to express my gratitude to my fellow Kabakeños for

giving me the trust and confidence to serve them. The mandate that you have given

me serves as a motivation to work on the tasks of finally putting our dreams and

aspirations into action for a better Kabacan.

And to all our municipal officials, private sectors, non-government organizations

and national government institutions , may this report become your guide in delivering

basic services in such a performance that would produce and sustain desirable

development conditions for our constituents.

Again, let us bring ourselves together and improve our efforts towards

sustaining excellence on good governance.

May the Almighty God bless us all!

GEORGE B. TAN Municipal Mayor

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EXECUTIVE SUMMARY

Introduction

The State of the Local Governance Report (SLGR) is the outcome of the

accumulated outputs of the Local Governance Performance Management System

(LGPMS) , an on-line self-assessment tool that generates information to evaluate the

level of performances and productivity of LGU’s in the area of administrative

governance, social governance, economic governance, and environmental

governance. This facilitates the local government unit in developing executive and

legislative actions to address developmental gaps.

This report will serve as the guide to the Local Government Unit for policy and

program development as well as to provide basic information on the state of local affairs

in the municipality.

The Data Capture Form (DCF) was utilized as the method of data collection

and administered to the respondents from the different departments in the municipal

government as to the questions provided in the four (4) areas stated above. The activity

was spearheaded by the LGPMS Focal Person.

The result of the LGPMS indicators are translated into performance levels

ranging from 1 to 5 further illustrated as:

Performance Index Adjectival Rating Equivalent Color

1 - 1.99 Very low Red

2 - 2.99 Low Orange

3 - 3.99 Fair Yellow

4 - 4.99 High Light Green

5 Excellent Green

The report contained in this SLGR covers Profile Year 2011.

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Highlights of the Findings

Table 1 present the local governance performance of the Local Government Unit

of Kabacan in Profile Year 2011 in the five (5) performance areas of the Local

Governance Performance Management System .

PERFORMANCE NUMERICAL ADJECTIVAL

Administrative Governance 4.64 High

Social Governance 4.91 High

Economic Governance 4.70 High

Environmental Governance 4.87 High

Valuing Fundamentals of Good Governance

5.00 Excellent

Overall Performance Index

4.82 High

The findings of the assessment show that the over-all performance index of the

Municipality of Kabacan is 4.82 corresponding to a High adjectival rating . Four (4)

among the five service areas obtained a High adjectival rating that is Administrative

Governance (4.64), Social Governance (4.91), Economic Governance (4.70) and

Environmental Governance (4.87) . Meanwhile, a performance index of 5 equivalent

to excellent adjectival rating was achieved in Valuing Fundamentals of Good

Governance.

For PY 2011, it denotes that LGU Kabacan has taken a deep concern from

that of the previous years’ problematic areas and in areas which needs improvement.

Most of the service areas in the four (4) performance areas has obtained

remarkably high ratings.

It can be noted that ratings obtained for the past three years from PY 2009 to

2011 has significantly improved as shown below. This may be attributed to LGU’s

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determination to focus in addressing the problems in service areas with low

performance and its existing capacities such as policies, managerial and technical

competencies, internal administrative systems, equipment and facilities; and financial

resources which were contributory to the high performance ratings.

Comparative Performance Level of LGU-Kabacan (CY 2009 -2011)

Performance Areas 2009 2010 2011

Administrative Governance 4.42 4.58 4.65

Social Governance 4.87 5.00 4.91

Economic Governance 4.60 4.75 4.70

Environment Governance 4.75 4.35 4.87

Valuing Fundamentals of Governance 4.68 5.00 5.00

OVERALL PERFORMANCE INDEX 4.66 4.73 4.82

Capacity-Ensuring and Reinforcing Factors

The Local Government Unit of Kabacan for the year under review has higher

capacity levels in all performance indices. This attributed to the following activities and

accomplishments of the LGU;

Presence of Legislative Agenda that complements the Executive Agenda

Presence of the Codes namely: GAD Code, Revenue Code, Children and Youth

Code, Market Code, Terminal Code

Effective Legislative Tracking System

Participatory partnership with local civil society organizations and private sectors

organizations

Presence of Bulletin boards, newsletter, flyers/ brochures and LGU video briefer

Access to information-communication to broadcast and print media

Functional and effectiveness of the following special bodies: Municipal

Development Council, Municipal Health Board, Municipal Peace and Order

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Council, Municipal School Board; and the Municipal Housing Board, Municipal

Disaster Risk Reduction Management System, Municipal Council for the

Protection of Children

Presence of an efficient Annual Investment Plan, Comprehensive Land Use Plan

(CLUP) and Zoning Ordinance, Annual Revenue Generation Plan,

Comprehensive Development Plan (CDP), Capacity Development Agenda

(CapDev), 10-Year Ecological Solid Waste Management Plan with Municipal

Investment Incentive Code under review

Functional BPLO and systematic application of Business One-Stop Shop (BOSS)

Functional Bids and Awards Committee (BAC)

Effective financial management system

Presence of Annual Project Procurement Management Plan (PPMP)

90% implementation of local government funded projects

Presence of local government policies supportive to sustainable agriculture

Presence of basic infrastructures and facilities

Key Areas for Strategic Directions and Actions

As captured in this report, there are identified gaps, issues and challenges that

needs for improvement. Plans and strategies will be instituted in the ensuing year to

attain excellence in achieving the priority goals of LGU Kabacan. For this year, my

administration has prioritized the following:

1. Continuing organizational development towards better efficient and effective

delivery of services in a socially-developed municipality with healthy, protected

and globally competitive citizenry with access to basic social services in a

balanced environment.

Improvement on health and nutrition such as service delivery,

regulation, etc.

- Providing additional manpower, allocating funds for vaccines and

supplies to fully immunized, infectious diseases.

- Strengthen health education in far-flung barangays through IEC

campaigns.

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Provision of MDRRMC equipment and facilities.

- Purchase of disaster equipment by the 1st Quarter of 2012.

- Construction of Disaster Emergency Building

Expand basic social welfare services programs to the disadvantaged

sectors.

- Providing soft-loan assistance for livelihood to organized groups.

- Facilitate indigent families for additional Philhealth membership.

Develop the existing housing program.

- Acquisition of a 3-hectare lot for housing expansion .

Enhance opportunities for skills, technology and vocational

development programs.

- Organize 12 Skills Development Trainings for OSY and Adults

Boost agricultural productivity of rubber, oil palm and sugarcane to

realize greater rural income and ensure adequate food security.

- Increase production of oil palm, rubber and sugarcane

- Farm mechanization such as expanding the provision of rice

threshers, farm tractors and other implements;

- Provision of small water impounding system to far-flung barangays

- Provide alternative livelihood and financial assistance to agriculture

which needs legislative measures such as MOA between

LGU/DOST/DTI/DOLE.

Intensify the implementation of existing environmental laws.

- Reduce solid waste disposal at a minimum level.

- Process the conversion of the existing dumpsite to a sanitary

landfill.

- 90% of the 24 barangays established the Material recovery

Facility.

Development of tourism destinations.

- Preparation of the Tourism Code by the 3rd quarter of 2012

- Improvement/ Development of access roads to tourism sites .

- Establishment of Tourism Info Cum Pasalubong Center.

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- Construction of a Municipal Theme Park.

- Skills Training on tourism promotional, and product marketing

strategies and training for tour /caving guides.

2. A responsive and dynamic organization observing laws and processes in a

participatory planning approach.

Sustain a comprehensive and participatory planning approach in

formulating plans and programs based on sectoral representations.

- A 100% multi-sectoral participation, attendance and support on

plan formulation and implementation by PY 2012;

Ensure economical and effective allocation, and utilization of

government funds.

- Operational BAC processes and disbursement of funds should be

maintained.

Enhance tax collection management system and identify other

potential revenue sources to increase locally-sourced revenues.

- Increased local revenue collection by 10% and reduced IRA

dependency by 5%.

Maintenance of a functional and efficient Real Property Tax System,

General Revision of Assessment, and Tax Map Revision .

- Installation of AutoCad mapping system by 2012.

- Increased of RPT collection by 15%.

Sustain the legislation of ordinances and codes supportive to the vision

of Kabacan.

- Formulation of the Municipal Investment and Incentive Code by the

1st Quarter of 2012.

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- Promotion of private sector investments for commercial and

industrial development.

- Codification of General Ordinances by the 3rd Quarter of 2012.

- Formulation of Tourism Code by the 4th Quarter of 2012.

Full implementation of the BPLS

- Increased 10% on Business Permits

Continuing development of infrastructure projects such as

repairs/rehabilitation and construction of roads, canals, bridges and

structures.

- Construction of a Comprehensive Drainage System.

- Construction of a Municipal Theme Park.

- Improvement of farm-to-market roads

- Rehabilitation/construction of Barangay Roads (From Salapungan-

Nangaan to Simone) MRDP Project

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Part 1. The State of Performance

Highlighted in this report is the performance of LGU Kabacan in four (4) areas of

governance: (1) Administrative Governance, (2) Social Governance, (3) Economic

Governance, and (4) Environmental Governance. A special report is included to

determine how the fundamentals of good governance such as Participation,

Transparency, and Financial Accountability are valued in the LGU. It is to note that the

LGU's performance was assessed based on the responses of Kabacan’s Committee

to the questions provided into the LGPMS database. A Performance Scale is used to

identify areas with excellent performance and areas for improvement. A perfect scale of

5 denotes excellent performance while performance scales of 1-4 indicate areas for

improvement. Although scales of 3 and 4 are relatively high, there are areas which can

still be improved on. All these are explained in detail as you read the entire report.

On Administrative Governance

Administrative Governance looks into six areas: Local Legislation, Development

Planning, Revenue Generation, Resource Allocation and Utilization, Customer Service

and Human Resource Management and Development. LGU Kabacan’s performance in

each area of Administrative Governance is plotted in the graph below.

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Area(s) with Excellent Performance

LGU Kabacan is doing an excellent performance in 3 out of 6 sub-areas of

Administrative Governance. Sustain Performance in this area:

Area(s) with Excellent

Performance Interpretation

Customer Service - Civil

Applications

Seamless delivery and ease of obtaining frontline services

are principal in civil registry and real property documents.

Development Planning

Structures, consultative processes and planning databases

which are highly facilitative in the preparation or updating of

land use and development plans are in place.

Human Resource

Management and

Development

Managing the human resource is geared towards a desired

end which is "desirable organizational performance and

productivity".

Area(s) for Improvement

The areas for improvement are listed by priority, starting from the area which

gets the lowest performance scale followed by areas which get higher performance

scales, respectively.

Priority Area for

Improvement

Performance

Description

Interpretation

Resource Allocation

and Utilization

4.00

High but not

Excellent

Management and coordination processes for

budgeting and accounting are in place. However,

these processes need to be revisited and

improved. They are guarantees to an effective

allocation and optimum utilization of financial

resources.

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Priority Area for

Improvement

Performance

Description

Interpretation

Revenue

Generation

4.33

High but not

Excellent

Existing measures in support of revenue

generation need to be enhanced. This is an initial

yet essential step in maximizing revenue

generation potentials.

Priority Area for

Improvement

Performance

Description

Interpretation

Local Legislation

4.53

High but not

Excellent

The imperatives of quality legislation have to be

looked into. This might mean looking into

legislative staff competence and the greater use of

legislative tools such agenda development,

legislative tracking, backstopping committee and

legislative performance.

On Economic Governance

Economic Governance looks into three areas: Support to Agriculture Sector,

Support to Fishery Services, and Enterprise, Business and Industry Promotion. The

report varies according to the nature of economic activities in the locality. Support to

agriculture or fishery services are filtered out if not applicable. LGU Kabacan’s

performance in this area is plotted in the graph below.

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None of the 2 areas in Economic Governance marked "excellent performance"

so far. Meantime, dedicate more time and effort on the areas for improvement.





Priority Area for Improvement

Performance Description

Interpretation

Entrepreneurship, Business and Industry Promotion

4.46 High but not Excellent

More need to be done to institutionalize a business-friendly environment. Factors such as the following need to be looked into.

Suggested Action(s) to Take

Improve the quality of permitting or licensing

Provide, or cause the provision of, direct support services to business,

particularly those categorized as micro, small and medium enterprises.

Support services may come in the form of tax incentives, product labeling,

product packaging, training, job fairs and trade fairs



Interpretation

Support to Agriculture Sector


Local government support is extended to the Agriculture Sector. But greater intervention is necessary.


Improve credit facilitation services to farmers

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On Social Governance

Social Governance looks into four areas: Health Services, Support to Education

Services, Support to Housing and Basic Utilities, and Peace, Security and Disaster Risk

Management. LGU Kabacan’s performance in each area of Social Governance is

plotted in the graph below.



Social Governance. Sustain Performance in this area:



Support to

Housing and

Basic Utilities

An administrative mechanism dedicated to addressing the multiple

requirements of housing services is in place. Mass housing project

and donation of lots for socialized housing are twin-response to the

housing backlog.

Support to

Education

Services

Truly effective support to basic education. The LSB is functional.

Principally, the SEF is used where it should be utilized in the first

place - school facilities, educational research, additional

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classrooms and teachers, scholarship program. Supplementary

allocation from the General Fund is an added value in favor of the

education sector.

Health Services

A highly functioning health system characterized by quality primary

health care, quality maternal care and quality child care. CSO-

participated medical missions and health insurance for indigent

families are innovations that add more luster to, and dynamism in,

the health system.





Priority Area for

Improvement

Performance

Description

Interpretation

Peace, Security and

Disaster Risk

Management

4.67

High but not

Excellent

Efforts are made to ensure Peace, Security and

Disaster Risk Management. But much more need

to be done. Factors that have the ability to improve

performance in this area have to be considered.


Ensure an annual financial allocation to the Katarungang Pambarangay. The

Local Government Code mandates it. Let us be reminded that this village

justice system is principal in the promotion of community peace, harmony and

solidarity.

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On Environmental Governance

Environmental Governance looks into four areas: Forest Ecosystem

Management, Freshwater Ecosystem Management, Coastal Marine Ecosystem

Management, and Urban Ecosystem Management. The report varies according to local

ecosystems. Ecosystems which are not related to the LGU are filtered out. LGU

Kabacan’s performance in this area is plotted in the graph below.



Environmental Governance . Sustain Performance in this area:



Freshwater Ecosystems Management

Freshwater ecosystem management is of importance to the LGU. Long-term planning is valued. CSO and citizen participation are recognized and are mobilized in fresh water protection and rehabilitation. Areas for rehabilitation and protection are set, and that target areas for rehabilitation and protection are met.

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Forest Ecosystems Management

Forest ecosystem management is central to the concerns of the LGU. Long-term planning is paramount. CSOs and citizens are mobilized in forest protection. Areas for reforestation and protection are set, and that target areas for reforestation and protection are met.







Interpretation

Urban Ecosystems Management


Pollution control and proper solid waste management are essential in preserving the integrity of the environment. More need to be done. To gain better performance in this area, consider the following:


Ensure that every barangay has a material recovery facility

Move from Open Dumpsite Facility to Controlled Dumpsite Facility to a

Sanitary Landfill as the final disposal facility. It makes sense. At the very least,

inaction has legal implications. But more telling are the health and

environmental imperatives

On Valuing Fundamentals of Governance

This section of the report describes how LGU Kabacan values and maintains

good governance in the context of Transparency, Participation, and Financial

Accountability.

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Valuing Fundamentals of Governance. Sustain Performance in this area:



Participation

Engaging the citizens and CSOs in local governance has

achieved an admirable level of maturity. Proofs to this are CSO

participation in decision-making through the Local Special Bodies,

CSO involvement in local development projects and Citizens

Feedback.

Financial

Accountability

Financial accountability is highly valued. Structures and systems

for accounting, internal control, procurement and financial

transactions are well-defined and working.

Transparency

Transparency in governmental operations is remarkable.

Communicating to the public through various means, i.e., Bulletin

Board, Public Information Office or Desk, print, broadcast media,

website, and forum, is valued.

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Financial Performance

The LGU Kabacan’s fiscal administration carried out very satisfactorily for the

PY 2011 with other critical indicators rating either excellent or very high based on the

Local Performance Management System.

The LGU’s income for Profile Year 2011 totaled to P 149,036,743.61 or 9.94%

increase compared to 2010 income of P 135,556,407.07. Of the total income we have in

2011, more than 21.20% comes from our regular sources consisting of our local

revenues from taxes, fees and income from economic enterprises, and our share from

the internal revenue allotment (IRA).

However, the LGU remained dependent on IRA share by as much as 78.80%

with last year’s amounting to P 117,443,640.00.

For locally-generated revenues, the LGU maintained almost the same level of

income from local sources at more than P 16,358,527.13 compared to the previous

year. Income from local taxes remains the major contributor accounting to more than

78.8% of the total. This is followed by business taxes at 10.85%, real property tax at

2.03%, economic enterprises at 6.47% , other income such as grants and donations at

1.33% and service income at .52%.

Our cost to collection ratio at 15% is also very satisfactory, although we will be

looking into reducing this further to meet at least the ideal 10%.

What is notable for last year’s financial performance is that all major contributors

exhibited income increases compared to that of the previous year. Our regular revenue

to total income achieved an exceptional performance at 100% which is higher than the

average of local government units and income class.

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Total expenditures for 2011 totaled to P 141,176.477.86 with P

1125,343,031.72 went to the LGU’s operating expenses constituting the bulk of

the municipality’s administration and governance functions. Our expenditure on general

services totaled to P 106,523,000.00 while economic services at P 25,095,000.00 and

social services amounted to P 11,267,000.00.

The LGU’s debt service ratio at 6.6 % is way below the maximum allowable 20%

and within the ideal 0-8% ratio with the personnel services expenditures at 36.90% is

also way below the maximum allowable of 45%.

As the figures presented below, LGU Kabacan has generally faired well in terms in

managing its financial conditions particularly in revenue generation; and revenue

allocation and utilization. However, these figures also present opportunities for the

LGU to further enhance fiscal policies and operational management.

REVENUE GENERATION

LGU Kabacan’s cost to collect revenues obtained an exceptional performance

since it indicated lower for both conditions: (1)average of LGUs with the same LGU

type and income class, (2)national average of the same LGU type regardless of

income class.

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Locally-sourced revenues to total income of LGU Kabacan achieved an

exceptional performance since this is higher than the: (1)average of LGUs with the

same LGU type and income class, (2)national average of the same LGU type

regardless of income class

The Regular Revenue to Total Income of LGU Kabacan obtained an

exceptional performance since it is higher than the: (1)average of LGUs with the same

LGU type and income class, (2) national average of the same LGU type regardless of

income class.

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The locally-source revenue level of LGU Kabacan is higher than the national

average of LGUs with the same LGU type and income class however, lower than the

average 1st class municipality.

LGU Kabacan indicated that locally sourced revenue per capita attained

higher performance than the national average of LGUs regardless of income class

however, slightly lower than an average 1st class municipality.

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LGU Kabacan’s real property tax income obtained a higher accomplishment

rate than the (1)average of LGUs with the same LGU type and income class, (2)

national average of the same LGU type regardless of income class.

RESOURCE ALLOCATION AND UTILIZATION

The ratio on Personal Services Expenditure of LGU Kabacan satisfactory met

the three conditions: (1) lower than the average of LGUs with the same LGU type and

income class, (2) lower than national average of LGUs with the same LGU type

regardless of income class, (3) Did not exceed the 45-55 ceiling for P.S.

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LGU Kabacan’s total expenditure per capita got hold of low average than that

of the desired performance which should be higher than the average of LGU’s with the

same type and the national average of the same LGU regardless of income class.

The ratio of LGU Kabacan’s debt services met very satisfactorily since it has not

exceeded the 20% of the regular income which is the debts servicing limitation set

for under Local Government Code of 1991.

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