The Local Government Units that may participate in the Project belong to different
income classes and accordingly have different levels of financial resources and capabilities.
However, all of them follow the New Government Accounting for LGUs that requires the basic
segregation of financial management functions. As specified in the Local Government Code
(LGC) of 1991 and government accounting and auditing rules and regulations, cashiering and
treasury functions are performed by the Local Treasurer (appointed by the Secretary of the
Department of Finance) who is also responsible for collecting revenues. The Local Accountant
performs the internal control/audit functions, in addition to the basic accounting functions of
recording, summarizing and reporting of financial transactions. Budgeting activities are under
the Budget Division.