Translating Commitments Into Action Through Strategic Partnerships PFM REFORM ROADMAP: A STATUS REPORT

36th Annual National Convention“GACPA: Sustaining Public Trust through Accountability,

Credibility and Transparency"

May 21 to 24, 2014

“kung walang corrupt, walang mahirap.”

and leaves no one behind.... growth that benefits all

The two years that was…..

…….Years 2010-2012

PFM Reform Roadmap

Master plan for improving the financial management system of the government

Jointly formulated and approved by fiscal oversight agencies (COA, DBM, DOF-BTr)

Defining the goals of the PFM Reform Roadmap

Honest and effective governance – truly transparent, disciplined, and serving the interest of the country and its people.

PFM Vision

Public Financial Management Results Framework

Improved Service Delivery | Transparency | Fiscal Discipline | Allocation Efficiency | Operational Efficiency

Systems & Process

People & OrganisationsPolicy

Reform Outputs

Reform Objectives

9

Accounting & Auditing Standards

Unified Accounts Code Structure

Performance Informed Budgeting

Contingent Liability Framework

Treasury Single Account

GIFMIS Treasury Reporting

and Monitoring System (TRAMS)

Comprehensive Human Resource Information System

PFM Competency Framework

Capacity Building Change Management

GIFMIS Conceptual

Design

Comprehensive Human

Resource Information

System

System for Liability

Management

Unified Accounts

Code Structure

(UACS)

Governance Structure: PFM Committee and Project Implementation Units

PFM Competency Awareness Raising

The Building Blocks

SPENDING AGENCIES/LEGISLATIVE/CIVIL SOCIETY

YEAR 2O12-PRESENT

Financial Accounta-

bility Reports (FARs)

Accounting and

Auditing Reforms

Cash management

- Treasury Single

Account (TSA)

Performance-Informed Budgeting

(PIB)

TSA Reporting

System

IT Systems Improvement

Policy Reforms

Systems and Processes

People and Organization

Learning & Development

Strategic Partnerships

PFM

Oversight Agencies

Implementing Agencies

Partner Agencies

Legislative

Development Partners

Civil Society

Harmonized Accounts Classification Unified Accounts Code Structure - A government-wide

harmonized and single budgetary, treasury and accounting code classification system (DBM-DOF-COA Joint Circular No. 2013-1 dated 06 August 2013) Easier identification, collection,

aggregation, consolidation and reporting of all financial transactions

Common set of financial information to facilitate analysis and decision making

UACS Phase III UACS Administration (Management

and Maintenance) UACS Help Desk UACS Training and Education

Harmonized Financial Accountability Reporting Requirements of Oversight Agencies

Budget and Financial Accountability Reports (FARs) – accountability reports on appropriations, allotments, obligations, and disbursements (Joint COA-DBM Circular No. 2013-1 dated 15 March 2013)

Harmonized and rationalized to reduce number of financial reports and provide timely, reliable and accurate information

Accounting and Auditing Reforms

Twenty-five Philippine Public Sector Accounting Standards & Twenty-four Philippine Public Sector Standards on Auditing

Aligned with international standards, concepts and best practices for accounting and auditing

Enhancing the quality and uniformity of auditing practice throughout the Philippines and strengthening public confidence in the auditing and assurance profession

Ensure transparent and comparable financial statements

Improved Treasury Cash Management Operations

Treasury Single Account Administered by the Bureau of the

Treasury Maintained at the Bangko Sentral ng

Pilipinas New TSA Framework for Collection

Transition from a float to a fee-based system of compensation

Banks to remit collections not later than 10am on the following day of clearing date

MOA signed among commercial banks, BIR/BOC and BTr in November 2013

Improved Treasury Cash Management Operations

TSA Reporting and Monitoring System (TRAMS) Web based application that will track aggregate

revenue of the TSA on a daily basis Provide a consolidated view of revenue collection Facilitate Modified Disbursement System until GIFMIS

is implemented Record and reconcile the revenues from the banks

and revenue agencies

Treasury Single Account Consolidation of the Accounts

No NGAs will be allowed to open a bank account without the approval of the DOF/BTr (per BSP Circular No. 811,s.2013 dated 13 September 2013)

Performance Informed Budgeting

A set of integrated processes that aim to improve the efficiency and effectiveness of public expenditure by linking resources to results making systematic use of performance information

A better understanding for oversight agencies of how agencies spend their money and what they achieve with it

Increasing government agencies’ ability to prioritize spending initiatives to get the best results for resources used

Information for legislators to hold Government to account for how they spend citizens’ money

Enabling the citizens (either directly or through civil society and the media) to see how government spends their money and hold them to account

GIFMIS Development

Government Integrated Financial Management Information System is an integrated IT solution that can collect and organize financial information in a central database

Procurement Ongoing GIFMIS Conceptual Design adopted in 2012 GIFMIS Terms of Reference, Bidding Documents finalized

in August 2013 Procurement started in August 16, 2013 Expected date of contract signing in July 2014

Goal: Harmonize and improve PFM business processes/ rules to facilitate analysis and decision making, and increase efficiency

Comprehensive Human Resource Information System

Procurement of CHRIS Solutions Provider in progress Shortlisted 7 eligible bidders Contract awarding – May 2014

Comprehensive Human Resource Information System is an integrated IT system encompassing the full cycle of HRM from recruitment and hiring to retirement Objective:

Standard and improved management of HR system and business processes

Application of common controls and standards Eliminate redundant data Single source of information

Current Systems Improvement (in preparation for GIFMIS)

Online Submission of Budget Proposal (OSBP) 2014 Budget submitted online Enhanced OSBP for 2015 Budget Submission

Budget Execution Documents Online A web-based system to facilitate easier preparation and

prompt submission of BEDs containing the agencies’ physical and financial plans and targets, and monthly disbursement program (NBC No. 550)

Implemented November 2013

Upgrading of eNGAs & eBudget To incorporate PFM reforms such as PPSAS, RCA

and UACS Roll out June-December 2014

System for Liability Management

GOCC debt report templates completed Development of the GOCC Monitoring System (GMS)

is underway  Database build-up for the GOCC Monitoring System

is on-going for the selected priority GOCCs/GFIs/SSIs

Establishment of a database of Government-Owned and -Controlled Corporations (GOCCs) to facilitate a centralized monitoring and management of guaranteed loans

Learning and Development

Training on the Philippine Government Internal Audit Manual (PGIAM) Trained internal audit personnel from 74 agencies

and GOCCs

Training on UACS and OSBPS Trained Budget Officers of the different NGAs,

Planning and Budget Officers of SUCs, and DBM technical staff from central and regional offices

Training on UACS and Budget Execution Trained Bureau of Treasury, DBM and COA

Spending agencies starting in June

Awareness Raising

Communications PFM Brand Book Completed IEC Materials: Ongoing distribution of UACS,

GIFMIS, TSA, CHRIS, LM, CB, PIB, AAR Project Briefs and FAQ flyers

Development of PFM posters – PFM Reform Roadmap, UACS and GIFMIS

Released seven (7) PFM Newsflash Articles to NGAs through DBM-TIS and DevComnet

PFM Annual Report

Production of AVPs Completed: PFM Reform Roadmap and Champions, PFM

Teasers and TSA Ongoing: UACS

Development of PFM Competency Framework

Envisions a strong backbone consisting of PFM practitioners in spending and oversight agencies to sustain reforms toward transparency, accountability and results

Need to prepare staff to meet current roles and future PFM demands including GIFMIS

PFM Competency Framework is a holistic government approach to capacity development among oversight and spending agencies.

Competency development as a core strategy for building capacity and managing behavioral change

Addresses need for GOP competency-based training linked to performance management and career progression of 60,000 plus PFM practitioners

Awareness Raising

Social Media Initiatives Overhauled existing PFM website as

an information portal. From January 2014 to date, we have

about 6,000 engaged website users and 23,000 page views

Phase 2 of the website development is the PFM Intranet portal which serves as an online repository of documents for PFM staff and select NGAs

Social Media Accounts—Facebook, Twitter, You Tube-- are also up and running to engage a broader audience

•Bottom line is outcomes•NGA Performance contracts

Now to 2016

Comprehensive Human Resource Information System

Financial Accountability Reports

PPSAs/PPSSAs/ Revised CoA

System for Liability Management

“to be” business processes for the Treasury Single Account

(TSA)

Unified Accounts Code Structure (UACS)

Performance-Informed Budgeting (PIB)

GIFMIS Conceptual Design

Governance Structure:PFM Committee and Project Implementation Units

PFM Competency Awareness & Training

Foundation

SPENDING AGENCIES/LEGISLATIVE/CIVIL SOCIETY

Common PFM

Policies & Rules

PFM Manual

Internal/External

Audit

Performance Management

•Savings/ income rules•AP- FIFO

•COA Audit used for decision making

PFM Competency

“PFM” Agency

Thank You