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Friday, April 26, 2019

Valley to fast track economic enterprises plan

THE Municipality of La Trinidad is gearing for its business plan (BP) following the Commission on Audit (COA) review of the Local Economic Enterprises (LEEs).

Business plan is a management tool required by the Department of Budget and Management which facilitates the coordination of the organization’s resources including human, financial and physical for goals and objectives in the BP can be achieved.

Mayor Romeo Salda acknowledged both the Trinidad Valley Trading Post (LTVTP) and the Strawberry Valley Hotel and Restaurant (SVHR) economic enterprise of the municipality and they are now fast tracking the preparation of its business plan.

"For the Strawberry Hotel, I think there was a prepared business plan which was continued today and I think the trading post is also preparing for the plan," the mayor said.

LEEs are ventures wholly or partially owned by local government units (LGUs) that generate revenue through the sale of services and goods to meet a perceived constituency demand.

“The lack of business plans for existing LEEs might compromise their financial self-sufficiency and sustained operations,” said COA-Benguet in a report.

BP is mandatory for the implementation of necessary changes to comply with the legal requirements of LEEs and to make its operations financially self-sufficient and profitable.

“In the case of the LTVTP, the LGU had only issued Municipal Ordinance No.5-2009 dated December 9,2009 creating the LTVTP Code, which establishes the rules and regulations governing the administration of the trading post including the adjudication of vacant and newly constructed stalls therein,” added the COA review.

COA further said although the LTVTP had been contributing the net surplus of the LGU, there is still a need to prepare a business plan since this would help management set its direction in the coming years, devise its goals and objectives and strategize as to how it would achieve them.

Operations of the LTVTP, according to COA, might be adversely affected if the directive from the Department of Agriculture to transfer the trading of vegetables to the Benguet Agri-Pinoy Trading Center will be fully implemented and would be beneficial to the LGU if a detailed BP is prepared the soonest.

The agency recommended for the preparation of the BP’s for LTVTP and SHVR was signed by OIC Audit team leader Amalia Valentin.

Local Budget Circular No. 111 dated June 10,2016 was issued by the DBM encourage the adoption of the DBM Manual on the setting up and operation of the LEE Manual as guide in identifying, establishing and operating viable LEEs. The LEE Manual was issued in relation to RA No. 7160 or the Local Government Code of 1991.
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