Driving Governance Excellence Through Fiscal Engines: A Global-To-Local Review

Abstract

This study interrogates the operational paradox of local governance in the Philippines, where highly urbanized cities such as Baguio consistently secure the "Gold Standard" of audit integrity yet fail to achieve conferment under the Seal of Good Local Governance (SGLG). Anchored on Stewardship Theory and the Theory of Fiscal Cluster Convergence, the research integrates a bibliometric review of global subnational fiscal administration literature with an empirical case analysis of Baguio City. Using PRISMA protocols and VOS viewer citation clustering, the study maps systemic friction points between international oversight designs and local compliance realities. Results reveal that while fiscal transparency is achieved through unqualified Commission on Audit (COA) opinions, operational bottlenecks— such as reporting lags, inter-office synchronization gaps, and compliance fatigue—undermine holistic governance outcomes. The findings highlight the need for integrated digital platforms, institutional agility, and long-term fiscal strategy to bridge the gap between accounting accuracy and governance excellence.