The Municipal Government of Bautista, Pangasinan was conferred with the Seal of Good Housekeeping award by the Department of the Interior and Local Government. Secretary Jesse Robredo conferred the Seal to qualified local chief executives of Region 1 in an awarding ceremony held at Oasis Hotel and Restaurant in La Union on August 3, 2011. The DILG, in its commitment to elevate the practice of good governance that values desirable development outcomes into institutional status, came up with the Seal to give recognition to local governments that accord primacy to the principles of transparency and accountability.
The criteria for the seal are:
1) Sound Fiscal Management or the absence of adverse or disclaimer COA opinion on its financial statements on the preceding year, and
2) Accountable and Transparent Governance, or compliance to Full Disclosure Policy on local budget and finances, bids and public offerings as stipulated by MC 2010-83, MC 2011-08, and sec 20 of the General Appropriations Act FY 2011.
The conferment of the Seal makes the local government eligible to access the Performance Challenge Fund to support local development initiatives. The Performance Challenge Fund for Local Government Units (PC Fund) is an incentive fund to LGUs in the form of counterpart funding to high-impact capital investment projects in the Annual Investment Program (AIP) and funded out of the 20% Local Development Fund consistent with national goals and priorities. It rationalizes national government intergovernmental transfers to LGUs, and encourages alignment of local development initiatives with national government development agenda and priorities.
The PC Fund is anchored on the Performance Based Incentive Policy which provides for an incentive framework to rationalize national government intergovernmental transfers to LGU towards improving LGU performance in governance and delivery of basic services. It seeks improvement in LGU performance by linking incentives to the achievement of a set of performance targets.The DILG initiated the PC Fund to stimulate local government to put premium on performance in order to avail themselves of financial support to jumpstart and sustain local economic development initiatives for poverty reduction in their localities.
The PC Fund aims to:
1. Recognize good governance performance particularly in the adoption of good housekeeping along the areas of governance and link with incentives and grants.
2. Encourage alignment of local development investments program with national development goals and priorities to achieve the Millennium Development Goals (MDGs), boost local economic development and comply with Philippine Disaster Risk Reduction and Management Act of 2010 and Climate Change Adaptation Act of 2009; and 3.Assist poor LGU in developing and implementing project for local economic development and poverty reduction.

