budget and management details of ongoing reform … of...budget ng bayan features basic budget...

Department of Budget and Management

Details of Ongoing Reform Initiatives

Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 20131 People's Budget Series The People’s Budget contains a summary of the

2011 General Appropriations Act, including budgetary allocations for priority programs and projects under President Aquino’s Social Contract with the Filipino People. It also contains basics on the Philippine budget process.

May 2011 ‐ 2016 Publication of the People's Budget Ongoing publication

2 Budget Priorities Framework Adopted in the FY 2014 Budget Preparation as provided for under NBM 118, the framework identifies the priority programs (based on the 5KRAs and the PDP) that will be supported by the budget and the geographical sites where these programs should converge to maximize their impact on unemployment and poverty reduction, and ultimately on the goal of achieving rapid and inclusive growth

2013‐2016Budgetary support for key programs in priority geographical sites

‐ Adopted in the FY 2014 Budget Preparation

3 Grassroots Budgeting Bottom‐up Budgeting is an approach to formulating the budget proposals of agencies, taking into consideration the development needs of poor cities/municipalities as identified in their respective local poverty reduction action plans that shall be formulated with strong participation of basic sectors and civil society organizations.

March 2012 ‐ December 2016

Aims to strengthen the bottom‐up participatory planning and budgeting through the development and support of local empowerment and poverty reduction action plans.

DBM DILG DSWD and NAPC issued Joint Memorandum Circular No. 4 on the policy guidelines and procedures in the implementation of the grassroots participatory budgeting process (formerly called bottom‐up budgeting) for the FY 2015 budget preparation) dated November 26, 2013.

By 2013, DBM targets to cover 609 cities and municipalities with 95% of them submitting Local Poverty Reduction Action Plan (LPRAP).

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 20134 Zero‐Based Budgeting (ZBB) and

Program EvaluationThe objective of the Project is to help institutionalize the zero‐based budgeting (ZBB)/program evaluation function and the medium‐term expenditure framework to improve budget preparation and to ensure that programs funded by the budget reflect the priorities of the government.

The project consists of the following parts: Component 1: Capacity Building for the Program Evaluation Unit in the DBMComponent 2: Pilot Development of Program Classification of the BudgetComponent 3: Conduct of ZBB/Program Evaluation Studies to Feed in the 2013, 2014 and 2015 Budget Preparation ExercisesComponent 4: Standardization of the Medium‐Term Expenditure Framework Approach

2012 ‐ 2014

Conduct of ZBB Studies

Workshop on initial draft of ZBB studies

Series of fora on presentation of findings/recommendations

The Zero‐Based Budgeting (ZBB) will continuously be adopted in the FY 2015 budget. It has been continuously used in the 2012 and 2013 budgets.

Component 1:1) Harmonization workshops conducted among DBM, NEDA and NSCB staff on ZBB concepts/techniques2) Primer/Manual prepared on harmonized ZBB concepts3) Trainings conducted for the DBM staff on program evaluation tools and techniques

Component 3:1) Additional ZBB studies conducted (One Cycle for the FY 2015 Budget)

Component 4:1) Series of workshops conducted on the standardized MTEP approach with selected departments/agencies 2) Pilot‐tested standardized MTEP approach

Review of Quick Response Fund (QRF), Purchase or Lease of Government Vehicle, Strategic Government Intervention for Job Generation

5 Transparency Seal Compliance Monitoring

National Budget Circular 542, issued by the Department of Budget and Management on August 29, 2012, reiterates compliance with Section 93 of the General Appropriations Act of FY2012

August 2012 ‐ 2016

Compliance of agencies to the implementation of the Transparency Seal Provision

The first round for evaluation of DAP and GCG handled agencies is ongoing. DAP have already submitted the reports for NGAs, GOCCs, SUCs and OEOs. While GOCCs report under GCG is pending. The second round will commence once the first round evaluation is completed.

Issued National Budget Circular No. 542 dated 29 August 2012 on Reiterating Compliance with Section 93, the Transparency Seal Provision, of the General Apppropriations Act of 2012

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 20136 DBM website revamp The Department of Budget and Management (DBM)

today launched the Budget ng Bayan website as part of its continuing commitment to improve and strengthen public fund management in the government.

Budget ng Bayan features basic budget information and an overview of the processes that underscore the budget cycle. As the online portal of the People’s Budget, Budget ng Bayan goes beyond providing information by engaging site visitors via the Citizen’s Portal, through which users can leave feedback on the National Budget and other related matters.

Creation of the Budget ng Bayan website.

Will be subsumed under the dbm.gov.ph website

Ongoing website management and updating per budget year

7 Open Data Philippines This Philippine Open Data initiative entails the “opening up” of all public sector information and datasets, making them more accessible, understandable, and reusable by the public. Starting with the all‐‐‐important budget‐‐‐related data, the highest levels of government, led by the Office of the President (OP), are decisively moving all national agencies into an Open Data regime, centered on the development and launch of data.gov.ph, the open data portal of the Philippines.

July 2013 ‐ 2016Institutionalionzation of the open data portal

Conduct of Data.Gov.Ph Hackathon #KabantayNgBayan on Nov. 9 and 10, 2013. The 2 day developer event was a collaboration of over 200 developers and designers to produce new web/mobile applications based on government data.

CSOs have engaged with the government’s ODTF to organize a series of consultative workshops leading up to the launch. It has planned at least three (3) multi‐stakeholder consultations on Open Data In NCR/Luzon, Visayas and Mindanao. Through this forum series, it seeks to encourage government efforts in Open Data and secure “buy‐in” from key sectors of civil society and the public sector.

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 2013An Open Data Task Force (ODTF) composed of units under the OP and the Department of Budget and Management (DBM) has been set up to lead this effort. Parallel to this, technical policy development is being undertaken by the ICT Office of the Department of Science and Technology (ICTO‐‐‐DOST), to adopt the necessary data/information and technical standards necessary for interoperability and citizen engagement via Open Data. With technical assistance from the World Bank Manila Office, the Task Force has since conducted workshops with key national government agencies, as it seeks to align, enable, and streamline the “supply side” of open government data.

8 Enhancing Participatory Budgeting (BPAs)

The project is a participatory budgeting initiative to strengthen the enabling environment for constructive CS engagement in Public Financial Management (PFM). It employs the following strategies: Strategy 1: Enhancement of the strategic policy and implementation framework for CS engagement in the budget process. This includes the conduct of studies on the policy and legal/funding environment for CS engagements and of continuous dialogues with NGAs, GOCCs and CSOs as feedback mechanism. Strategy 2: Building the capacity of stakeholders to implement CS engagement. Activities for this strategy includes CSO mapping, capacity building of DBM, NGAs and GOCCs, and knowledge product development.

November 2012 ‐ April 2014

Expand budget consultations with 24 National Government Agencies (NGAs) and 12 Government Owned and Controlled Corporations by 2015

For 2013, DBM is targeting to expand its budget consultations:

From 6 NGAs in 2012 to 12 in 2013;From 3 GOCCs in 2012 to 6 in 2013.

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 20139 Program Budgeting, including

MITHI

Platform of cooperation among government agencies participating in/contributing to the accomplishment/delivery of key programs of government

To operationalize this, per NBM 118, lead agencies will gather their participating agencies to meetings to conduct a consistency check on assumptions, targets, beneficiaries, focus areas and implementation timelines and resources

Key programs engaged by departments/agencies that are supportive of the five (5) KRAs under the Social Contract and Executive Order No. 43 contributing to the objectives/output of a department/agency.

1) Good governance and anti‐corruption cluster2) Human development and poverty reduction cluster3) Economic Development Cluster4) Climate Change Adaption Cluster


Employed in the 2014 Budget Preparation to further strengthen collaboration of concerned government agencies in the planning, budgeting and implementation of priority programs as identified in NBM 118

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 2013A. Medium‐Term ICT Harmonization Initiative (MITHI)

The Medium‐Term Information and Communications Technology Harmonization Initiative (MITHI)is an e‐Government and ICT support initiative that aims to harmonize ICT‐related resources, programs and projects in all agencies and on all levels of the bureaucracy.

The following are the objectives of MITHI: (a) To ensure a systematic process for the planning, budgeting, implementation, monitoring, and evaluation of government‐wide ICT projects; (b) To ensure the coherence of ICT programs and projects of the Government and its consistency with the five (5) Key Result Areas (KRA) of the Administration as laid out in EO no. 43 and the Philippine Development Plan 2011‐2016;

July 2010 ‐ 2016

Bridge the PC Gap (Target gap to be addressed: 33.6%)

Development of inter‐operable systems (broadband connectivity for 210 agencies, real‐time sharing of health information)

Roll‐out of selected systems‐ PFM: National Payroll System, selected GIFMIS component‐ iGov: centralized government cloud‐Justice: harmonized inmate management system (National Justice Information System)‐Health: Community Health Information Tracking System (CHITS) and Hospital Management Information System for RHUs

Crafting of a new Joint Circular Memorandum to be approved by the Steering Committee.

Issuance of DBM‐NEDA‐DOST Joint Circular Memorandum 2012‐01 dated 28 November 2012 on the Government Wide Medium Term Information and Communication Technology (ICT) Harmonization Initiative (MITHI) for FY 2014 to 2016.

and (c)To promote synergy among government agencies in planning and implementation of on‐going and upcoming ICT programs and projects.

ICT Asset Management System (creation of an online inventory of all ICT resources of government that can be accessed in real time)

Centralized procurement for PCs or ICT hardware

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 201310 National Government Internal

Control SystemsThe DBM, together with the Commission on Audit (COA) and the Office of the President‐Internal Audit Office (OP‐IAO), is pursuing the conduct of capacity‐building trainings on the NGICS/PGIAM for Internal Audit Service (IAS)/Internal Audit Unit (IAU) personnel concerned of about 25 departments/ agencies/government‐owned and/or controlled corporations (GOCCs).

The National Guidelines on Internal Control Systems NGICS intends to strengthen ICS of government agencies, strengthen accountability, ensure ethical, economical, efficient and effective operations, improve the quality and quantity of outputs and outcomes and enable agencies to better respond to the requirements of the public they serve.

2010 ‐ 2013Conducted trainings on PGIAM and NGICS

Completed the conduct of learning‐by‐doing trainings for the IAS personnel of the DBM and the DENR in June 2013.

Conducted two (2) batches of the second phase of the capacity‐building trainings based on Modules 1 to 8 of the PGIAM Manuals from 05 November to 19 December 2013 which were participated in by the IAS/IAU personnel concerned from 25 Agencies

NGICS has been rolled out in DepEd and DPWH on whole of department basis and in DOF, DOH, DOJ on limited basis.

11 Government Financial Management Information System (GIFMIS)

GIFMIS is an integrated IT solution that can collect and organize financial information in a central database to support, budget preparation, management, execution and financial reporting.

A browser based web application composed of modules that automates and reports the many different processes involved with the agency budget and expenditure cycle of the National Government.

2011 ‐ 2016

GIFMIS aims to improve visibility of payroll information and provide real‐time data to oversight agencies, to capture real‐time financial information at the source and to provide greater financial transparency of the National Government.

GIFMIS conceptual design was completed in 2012.

Procurement process for the design, implementation, operation and maintenance of GIFMIS is ongoing.

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 2013A. Unified Account Code Structure (UACS) under the Budget Reporting Performance Standards (BRPS) PIU

The Budget Reporting and Performance Standards (BRPS), is one of the PIUs created to support the operationalization of the Government Integrated and Financial Management Information System (GIFMIS), an inter‐agency project that will provide reliable and accurate information to support better fiscal planning, operational budgeting, cash programming and management, timely financial reports and effective enforcement of financial accountability rules and procedures.

The goal of the BRPS PIU is to harmonize financial and performance reporting for better analysis and decision making.

The UACS was adopted in the new systems such as the OSBPS and the online submission of BEDs.

The UACS was approved for implementation in the 2014 budget under the DBM‐COA‐DOF Joint Circular No. 2013‐1 dated 06 August 2013. This included:

1) Making final refinements to the UACS design and developing the UACS Manual;2) Development and delivery of training (Trainings were delivered by DAP in March);3) Setup and tested the Online Submission of Budget Proposal Systems (OSBPS);4) Assisted with the analysis of budget execution systems in spending agencies with regards to their UACS ‐ readiness.

Joint DBM‐COA Circular No. 2013‐1 (dated 15 March 2013) stating the guidelines on the submission of quarterly accountability reports on appropriations, allotments, obligations and disbursements.

Financial accountability reports (FARs) were harmonized and simplified to provide timely, reliable and accurate information.

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 2013B. Online Submission of Budget Proposal System (OSBPS)

OSBPS allows central office of departments/agencies can now enter budget data directly into the system and make real‐time submission of their consolidated FY2014 budget proposal to DBM. Essentially, OSBPS replaces the paper and worksheet files manually submitted to DBM. Under this pilot phase, central office of agencies will be responsible for encoding the budget of all their operating units.

OSBP seeks to improve the time‐consuming process of budget preparation. It also makes data aggregation easier and faster since it complies with the new Unified Accounts Code Structure (UACS).

2011‐2014Institutionalized the Online Submission of Budget Proposal System (OSBPS)

All agencies encoded submission online for 2014 budget preparation. However, agencies still submitted hard copies to DBM for validation of online submissions.

Adopted the OSBPS in the FY 2014 Budget Preparation.

C. Online Submission of Budgetary Reports

The Online Reporting System aims to facilitate the timely submission of the BEDswhich arecompliant with the Unified Accounts Code Structure (UACS)

The submission of 2014 Budget Execution Documents (BEDs) are being done online. Not all agencies have complied especially big departments with regional offices since the system requires encoding by Object which makes compliance take longer.

DBM issued Circular Letter No. 2013 ‐ 13 dated Novermber 25, 2013 on the Use of Online Reporting System for the Submission of Budget Execution Plans and Targets for 2014 and Subsequent years.

The Online Reporting System will be available starting 18 November 2013

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 2013D. Comprehensive Human Resource Information System (CHRIS)

CHRIS is an integrated system encompassing the full life cycle of Human Resource Management from recruitment and hiring through retirement. Payroll System processes are included in CHRIS and will be the focus of the initial implementation.

CHRIS is one of the key reforms under the Philippine Public Financial Management (PFM) Reform Roadmap. The system is envisioned to support improved and harmonized management of human resources and personnel expenditure toward improved transparency, accountability and efficient service delivery.

The objectives of the project are as follows:

Process payroll for all National Government agency employees from a single government‐wide payroll system.

2011 ‐ 2016

Cost savings achieved through verification of authorized workforce and adherence to budgeted appropriations.

Cost savings achieved through administrative efficiencies.

Timely remittance of withholdings to the BIR, GSIS and other agencies, along with timely reconciliation.

Improved cash planning with disbursement through GIFMIS via the TSA.

Harmonization and verification of disparate database.

Harmonization of Human Resource and Payroll policies.

Improved reporting and analysis.

An initial pilot in 6 agencies revealed the need for a scalable, enterprise level solution, rationalization of policies across agencies and a dedicated implementation team.

A design was reached to include all HR transactions under Personnel Information Database System (PIDS), the Government Manpower Information System (GMIS) and other functionalities including payroll.

Pilot agencies: DBM, COA, DOF, BIR, BTr. Preparation of libraries for CHRIS ongoing. This is being done in preparation for configuration of the software. The library for the salary deductions and leaves is finished.

Preparation of library for plantilla and non‐plantilla positions is ongoing. The plantilla and non‐plantilla positions for pilot agencies are being updated for the library.

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 2013Provide improved tools and data for the efficient management of the government's human capital with a single CHRIS.

Identify and implement better approaches to government payroll, human resources and personal operations.

Satisfy the core needs of each agency while realizing cost savings, reduced risks and operational benefits of unified systems, common business practices and improved information.

Harmonize policies and procedures relating to payroll management.

The functional requirements for the system were documented based on consultations with key stakeholders, and a Policy Rationalization Technical Working Group is recommending standardization of policies to implement CHRIS across government.

Procurement of an enterprise level solution is underway based on the documented requirements.

E. Treasury Single Account (TSA) The TSA is a unified structure of government bank accounts that aims to consolidate and optimize the use of Government cash resources.

The TSA will enable Government to consolidate cash resources on a daily basis and reduce borrowings currently necessitated by perceived cash shortages arising from holding so many government bank accounts and a fragmented system for handling receipts and payments.

2011 ‐ 2016

A unified structure of government bank account under TSA will deliver the following benefits:

1) Greater clarity of funds inflows and outflows;2) Greater transparency in public financial management;3) Improved cash and debt management;4) Improvement of domestic financial markets by increasing their liquidity;5) Facilitating more accurate accounting and improved reporting;6) Reduced transaction cost while increasing interest earned for the GOP.

The Bureau of Treasury will prioritize the implementation of the TSA by January 2014.

About 320 treasury accounts (regular Peso accounts, ODA accounts, bond sinking funds) have been identified and by the first quarter of 2014, these accounts are expected to be consolidated. NGAs and OBAs accounts will be consolidated by second and third quarter of 2014. The last qurater of 2014 will be focused on finalizing the consolidation of accounts for the remaining NGAs and GOCCs.

An interim IT system, the TSA Reporting and Monitoring System (TRAMS), is the first priority of the BTr. This will be the system that will allow the for effectively implementing the TSA.

Chart of Accounts for National Government Agencies (NGAs) were revised to conform to the PPSA and harmonized with Budgetary Accounts.

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 201312 Cashless, Checkless Payments

ImplementationCashless transactions would mainly be supported by the Land Bank of the Philippines as the system would enable payments to not go beyond the exact payment to avoid corruption and records would go directly to the database of the Bureau of Treasury for clearer access and tracing of each transactions made within the government. Digitizing transactions will save government millions of pesos which was only spent for paper checks needed in offices and agencies.

The Better Than Cash Alliance (BTCA) is a partnership of governments, multilateral and bilateral donors, UN agencies, International NGOs, and private sector leaders, which is committed to a transformational shift from cash to electronic payments.

Develop knowledge products on the opportunities of electronic payment programs in the Philippines

Advocacy within the government the benefits of transitioning into a "cash‐lite" society.

The Philippine's digitization reforms were recently hailed in the Better Than Cash (BTC) Alliance High‐Level Panel Discussion, which was held in January 23 during the World Economic Forum Annual Meeting in Davos, Switzerland.

The Department of Budget and Management (DBM) joined the membership for global organization Better Than Cash Alliance (BTCA) in their aim for all government agencies and officials to implement cashless transactions and payments by 2014.

For the 2013, the DBM is targeting the following milestones:

Provide support in the development of BTCA in the country;

Collaboration with the Private sector in developing the electronic payment system in the country;

Ease awareness on the gains of electronic transactions.

The Bangko Sentral ng Pilipinas and the DBM are the focal agencies of the Philippine Government to BTCA and responsible for the implementation of electronic payment initiatives

BTCA is a foreign assisted initiative where DBM is in partnership with USAID and UNCDF.

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 201313 Cashless Purchase Card

ImplementationIn order to reduce the number and value of cash advances in government, the Government of the Philippines (GOP) implemented a “cashless” system through the use of purchase cards. Purchase cards are plastic or “virtual” cards. It is used for low value payments of a restricted number and type of goods and services, including airline tickets for official travel. While these cards would resemble commercial charge cards, they will have additional restrictions and controls more applicable to a governmental context.

December 2011 ‐ December 2016

Ongoing drafting of the joint circular between DBM and DND

CPC system is an online program that collates data from the transaction made on every Card and generates a comprehensive and customized report accessible to authorized government agency personnel in charge of accounting, reporting or auditing, from the convenience of a web browser.

The Cashless Purchase Card Program was implemented on a pilot basis starting with the Department of Budget and Management (DBM) and the Department of National Defense (DND).

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 201314 Improve PhilGEPS utilization eBidding facility in the PhilGEPS will allow

advertisement at the website with the widest dissemination and availability of info 24/7 at no cost

Templates for e‐bid submission standardizes procurement requirements and processes, and ensures complete submission of documentary requirements

Bid opening possible online once the required number of BAC officials have logged into the system

Enhances transparency as bidders can monitor online the status of opening, evaluation and post‐qualification

‐Pilot implementation in DPWH has yet to push through pending issuance of the E‐bidding Guidelines, which is being routed for the signature of the members of the GPPB.

‐Ongoing profiling of DPWH personnel to assess existing knowledge of the PhilGEPS in order to provide the appropriate training module.

‐ Scheduling a parallel run of the E‐bidding with the Procurement Service

‐Electronic Modified Disbursement Schedme (eMDS) will be piloted in the DBM in December 2013

The eVoucher system (or the e‐CCG for eCash for Common‐Use Goods) will allow NGAs to procure their requirements for common use supplies and equipment from the PhilGEPS Virtual Store.

It will facilitate monitoring of purchases against the procuring entity’s Annual Procurement Plan.

Procuring entities will be entitled to a rebate equivalent to 1% of the amount of the processed Agency Procurement Request (APR); rebate will be credited to the provident fund of the NGAs

The e‐Payment system via the Land Bank of the Philippines’ (LBP) Current Account/Savings Account (CA/SA) facility, a new functionality in the PhilGEPS that will complement the Virtual Store (VS) was launched on January 14, 2013.

The introduction of this functionality will make procurement from the Procurement Service (PS) a notch easier and faster. This is because the Agencies with LBP CA/SA accounts may already facilitate the payment of their electronic Agency Procurement Requests (e‐APR) via online transactions, thereby eliminating the need for the Agency to go to the LBP branch and fill out forms for the payments.

There are 6 GOCCs and 1 LGU using the ePayment system.

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 201315 GAA as Release Document The annual appropriations of agencies, as

authorized in the GAA, are automatically released upon effectivity of the GAA, except those items requiring compliance with conditions and additional documentations as identified in the guidelines to be issued for the purpose.

The rationale for adopting GAARD: (1) to enhance transparency/ credibility of the GAA: WYSWYG(2) to promote better program/project implementation through streamlined budget execution procedures(3) to foster accountability among recipient departments/ agencies/Operating Units (OUs) for the immediate availability of allocated funds.

2013‐2014

GAA as Release Document with appropriations and allotment validity of one year

Submission of the BEDs through web‐based application (ICTSS to reconfigure existing IT systems for this)

Conduct of fora with departments/agencies and DBM technical personnel on the NBC

National Budget Circular on Guidelines in the Preparation and Submission of Budget Execution Documents (BEDs) for 2014 and Subsequent Years

Issued Circular Letter No. 2013‐9 dated October 30, 2013 on the conduct of a series of briefings on the changes in the Budget Execution Documents (BEDS) to be prepared by implementing agencies for 2014 and subsequent years.

The objectives of the briefing are: 1) To discuss preliminary activities towards operationalizing the GAA as a release document; 2) To present to the participants the highlights of the guidelines in the submission of the BEDs for 2014 and subsequent years; 3) To discuss the changes in the forms to properly reflect the coding system under the UACS and the agency deliverables and targets under the PIB structure; and 4) To help the agencies better understand the modifications and how to properly effect the changes in the prescribed documents that they will prepare and submit to DBM as basis for fund release in 2014.

Issued National Budget Circular No. 550 dated October 29, 2013 on the Submission of Budget Execution Plans and Targets for 2014 and Subsequent Years.

16 PFM Competency Framework The PMO developed a concept note that provided the basis for the development of a PFM Competency Framework. Following the approval of the activity by the Program Steering Committee in February 2013, WYG International / Chartered Institute of Public Finance and Accountancy were selected to implement the activity.

July 2013 ‐ December 2013

The results of the study was presented to the Capacity Building PIU on November 2013. The final report is currently being finalized.

The project was mobilised in June 2013 and expected to be completed by the end of the year. It should be a valuable input and early step toward professionalising the PFM workforce. By identifying core PFM capabilities required by government staff at all levels it is hoped the PFMCF leads to more systematic workforce development and better targeted training programs and HR policies.

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 201317 Support to the Local Government

Unit for more effective and accountable Public Financial Management (LGU PFM 2)

A four‐year project supported by an 8 million Euro Grant from the European Union, LGU‐PFM 2 aims to address two key issues:

‐ challenge of attaining fiscal sustainability; and

‐ weak LGU PFM due, in part, to poor coordination between LGUs and oversight NGAs as well as among NGAs themselves

2012‐2016

‐ Improved institutional capacities of the oversight bodies at central level‐ LGU PFM Reform Roadmap‐ Strengthened capacity of ROs‐ Improved revenue generation and management at LGU level‐ Improved budget, planning and execution‐ Localized procurement reforms‐ Enhanced effectiveness of LGU performance monitoring systems; and‐ Financial management leadership developed at LGU level

‐ Completed validation of the current state of local PFM as indicated by the results of PFM Assessment of 550 FY 2013 BuB focus LGUs, and the Rapid Assessment undertaken by the Technical Assistance Team ‐ Completed technical editing of analytical and diagnostic tools‐ Pilot, Training of Trainers (ToT), cluster trainings and briefing on the enhanced Electronic Statement of Receipt and Expenditures (eSRE System)‐ Ongoing updating of the Comprehensive Development Plan Manual aimed at improving the local planning process‐ Updated policy guidelines on the accreditation of CSOs by the Local Sanggunian and selection of representatives to local special bodies‐ Enhancement, conduct of ToT and roll‐out of PFMAT for LGUs Software‐ Ongoing effort to establish a system for consolidating financial information from the barangays‐ Ongoing development of the Handbook on CSO Participation in the Budget Process

18 Creation and Operationalization of the Chief Financial Officer

As envisioned, the CFO will be responsible for the development of government financial management policies and standards; oversee performance and compliance across government; and develop internal audit policy.

‐ Proposed reform activity‐ Ongoing legal study on how this can be operationalized

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 201319 Performance Informed Budgeting

(PIB)NBM 117 dated March 1, 2013 requires the adoption of PIB starting FY 2014 to strengthen linkages between planning, budgeting and outcomes, simplify budget presentation and enhance transparency and accountability in the allocation of limited resources.

The new structure of the NEP shall contain the Strategic Objectives where Agency Mandate, Vision, Mission, Key Result Areas, Sector Outcome and Organizational Outcome are reflected. It has under Section 1 the Expenditure Program, under Section 2 Expenditure Program by Central and Regional Allocation, under Section 3 Special Provisions and under Section 4 Performance Information

June 2013 ‐ December 2013

PIB Structure adopted in FY 2014 NEP/GAA

Greater transparency, accountability and citizen's participation in budgeting

DBM adopts the Performance Informed Budgeting (PIB) structure for the FY 2014 National Expenditure Program (NEP).

A. ADB SCDTA ‐ PI Register The ADB Small Scale Development Technical Assistance aims to complete the work done under TA 7190. It supports the institutionalization of the PIR.

November 2013 ‐ October 2014

Performance Indicator RegisterTechnical Assistance (TA) has been approved but not yet implemented

B. PIB Task Force Approved by the EXECOM in principle.

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 2013C. Monitoring & Evaluation Tool In support to efforts of Government of the

Philippines in implementing a performance‐informed budget for CY 2014 towards the achievement of the sector outcomes and societal goal of the Philippine Development Plan (PDP) 2011‐2016, a technical assistance is being provided to the GPH towards enhancing the M&E capacity of GOP agencies. This undertaking is implemented by the DBM and NEDA, as lead oversight agencies on results‐based public sector management.

The strong emphasis of the GPH in moving towards results‐based public sector management is consistent with the objective of improving aid and development effectiveness, with reference to international commitments in the 2005 Paris Declaration on Improving Aid Effectiveness, the 2008 Accra Agenda for Action and the 2011 Busan Outcome Statement.

2013 ‐ 2016

This study aims to generate information on the current M&E capacity of GOP agencies as reference in further strengthening of M&E capacities in support to delivery of outputs (MFOs) and achievement of outcomes

Conduct of a preparatory workshop for the Monitoring and Evaluation (M&E) capacity assessment on December 10, 2013. The purpose of the preparatory workshop was to refine and finalize the draft M&E capacity assessment tool and to gain a common appreciation of the analytical framework and key assessment indicators/information. Participants of the preparatory workshop include DBM (Operations Group, BTS, SPIB, OPCCB, CPRS, IAS, TIS, FPB, OSEC‐RIU, RO‐NCR, RO IV‐A, and RO IV‐B), NEDA (Monitoring and Evaluation Staff) and selected AO 25 Secretariat members.

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 2013The Busan Fourth High Level Forum (HLF4) identified the importance of results and accountability as one of the building blocks in improving aid and development effectiveness. Specifically, it highlighted the strategic contribution in addressing the following, among others: (a) strengthen and use developing country systems, particularly on the strengthening of statistical, monitoring, evaluation systems and evidence‐based decision making; and (b) results reporting, particularly on enhancing transparency of results information, through use of web‐based platforms; improved practices of results reporting by developing country; and developing and applying good practice principles for results frameworks, such as regular and consistent reporting.

As part of the preparation for the capacity building efforts, an M&E capacity assessment will be carried out in selected government agencies. The capacity assessment will support the subsequent implementation of the ongoing study on the formulation of the National Evaluation Policy Framework (NEPF).

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 201320 Results Based Performance

Management System (including Incentive Systems)

EO 80 issued on July 2012 directed the adoption of the PBIS to motivate, recognize and reward exemplary performance in government. It is based on the premise that service delivery will be improved by aligning individual commitments and performance to the organizational goals and objectives

The PBIS consists of: ‐ Productivity Enhancement Incentive (PEI) worth P5,000 granted across‐the‐board, and ‐ Performance‐Based Bonus (PBB) given to personnel based on the individual's performance and his/her office's contributions to the accomplishment of the Department's targets and commitments

‐ IATF Memorandum Circular No. 2013‐01 issued last August 2, 2013 provided guidelines for the grant of performance‐based incentives for the current year‐ Pilot implementation in FY 2012

21 Agency Modernization Framework In exchange for demostrated performance, this new framework agrees to grant certain flexibilities to agencies in terms of determining organizational structure and staffing pattern. By doing so, agencies are enabled to deliver on their commitments and made accountable for results. This is in line with the efforts towards performance‐based budgeting.

Departments identified:1. DA2. DBM3. DepEd4. DOF (BoC, BIR, and BTr)5. DOH6. DOLE (TESDA)7. DPWH8. DTI (BOI)9. DOTC10. NEDA

‐ Finalization of the basic conditions that have to be met in order to implement the framework‐ Finalization of the flexibilities that will be granted under this framework

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 201322 Account Management Teams

(AMT) (Tactical‐ as needed)The DBM has formed Account Management Teams as a response to the low levels of expenditure among major departments. The primary objective of the AMT was to examine the bottlenecks within the agencies and to ensure accurate and effective crafting of Monthly Cash Programs by their respective budget officers.


Creation of the DBM AMT

Departments identified are:1. DPWH2. DOE3. DA4. DAR5. DENR6. DILG7. DND8. DOTC9. DepEd

23 Rapid Results Initiative (Tactical‐ as needed)

The Government recognizes the need for creating a Performance and Projects Management Office (PPMO) per EO 99 – modelled on “delivery/stat models” elsewhere ‐ to facilitate the implementation of key priorities of the administration seen to be ‘held up’ in the bureaucratic machinery.

With two years left in the Aquino Administration, quick action is necessary to facilitate the creation of such a unit and deliver on this mandate.

September 2013 ‐ December 2016

Creation of an RRU in DBM

The proposed RRI sectors:1. 4Ps Beneficiaries ‐ Lead agency: DSWD2. Fisheries ‐ Lead agency: DA‐BFAR3. Coconut ‐ lead agency: DA‐Coconut Roadmap PMO

Proposed timeline for the implementation of the RRI:Nov. 25‐29, 2013: Briefing with agency directors and department SecretariesDecember 13, 2013 – January 10, 2014: Finalize the locations and team compositionsJan. 19‐31, 2014: Training of the composite teamsFebruary 10: Launch of the RRI (Day 1)

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 2013A suggested approach:

1) Select 3 priority programs 2) Specify the location of ‘results teams’ within a unit in DBM3) Detail staffing profiles & recruitment (fast tracked and possibly flexible)4) Determine the approach to performance monitoring and delivery support

EO 99 clearly lays out the mandate for the unit, staffing and funding arrangements. But to turn this mandate into practice requires:

1) Locating the unit within GoP organizational structure Recommendation: DBM – reporting directly to Secretary 2) Detailing staffing profiles3) Recruitment (fast tracked and possibly flexible)

4) Analyzing the delivery chain & developing action plans 5) Organizing for problem‐solving ‐ Building on the success of the AMTs. 6) Strategic Communication ‐ Public engagement on the results

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 201324 Legislation‐ Fiscal Responsibility

BillThe Fiscal Responsibility Bill seeks to strengthen fiscal discipline in the public sector. The bill prescribes a set of principles that promote fiscal sustainability and prudent spending by ending the proliferation of unfunded laws through the implementation of an off‐setting mechanism. Some of the salient provisions of the bill include:

• Inclusion of major final outputs and performance indicators in the formulation of the annual budget to be passed by Congress;

• Restricts release of Personnel Services appropriations based on the information provided in the Government Manpower Information Service; and

• All expenditure bills to be passed by Congress must be off set by measures that provide for a permanent increase in revenue or a permanent reduction in other expenditures

July 15, 2013 ‐ present

Passage of the Fiscal Responsibility Bill

Copy of draft Fiscal Responsibility Bill was already submitted to the Committee on Appropriations for sponsorship by a member of Congress. This was included as among the priority legislative measures of the executive.

• Lead Agency: DBM• Agency Support: DOF, NEDA

25 Legislation‐ Uniformed Pension Reform Bill

The Retirement Benefit and Pension Law for Uniformed Personnel seeks to reform the pension system covering the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP), Philippine Coast Guard (PCG), Bureau of Fire Protection (BFP) and Bureau of Jail Management and Penology (BJMP) and ensure sustainability of these benefits. The bill is being drafted by a technical working group composed of DBM, DND and DOF.

Passage of Uniformed Pension Reform Bill

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 2013The bill’s provisions include the removal of the indexation of retirement benefits and pension to the salaries of those in active duty. Instead, DBM and DOF shall be tasked to periodically review these rates and recommend increases for the approval of the President. It will also deactivate the AFP Retirement and Separation Benefits System (AFP‐RSBS). New entrants into the system will contribute 9% of their monthly compensation while their employer will contribute 18%. There is also a proposal to return contributions to the AFP‐RSBS of active personnel. Any deficiency in funding will be provided by the national government.

26 Document and Records Management Systems (DMS)

The DBS is a customized information technology facility that will handle electronic receiving, routing, tracking, releasing and archiving of all hard copies of documents and records received or issued by DBM in the conduct of its affairs.

September 2013 ‐ December 2013

Document Management System (DMS)

The full implementation of the Centralized Receiving and Releasing of Documents through DMS commenced on November 18, 2013.

A dry run for the DMS was conducted on November 14‐15, 2013 together with the launch of its promotional video.

Issued Department Order No. 2013 ‐ 15 dated October 10, 2013 on the guidelines on the implementation of the Document and Records Management System (DMS) in the DBM Central Office.

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 201327 DBM Planning Tool Prescribed by the Office of the Cabinet Secretary to

monitor progress of government programs and projects and their impact on overall govenrment objectives, the Planning Tool (specifically Form 1) indicate the annual targets and commitments of the Department Secretary to the President for the years 2013‐2015

The Planning Tool also prescribes Forms 2 and 3 to ensure attainment of these targets by cascading these to lower delivery units. Form 2 contains the commitments of each Undersecretary and Assistant Secretary; Form 3, Directors and Assistant Directors

2013‐2015Planning Tools of the Secretary, Usecs/Asecs and Directors/Assistant Directors

‐ Submitted the revised Department Planning Tool 2013‐2015 to the Office of the Cabinet Secretary (date of receipt: September 24, 2013)‐ All functional groups have undergone planning workshops for the preparation of the concerned Functional Group Head's and the Directors' respective Planning Tools

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 201328 Strategic Performance

Management System (SPMS)To address the gaps and weaknesses found in previous evaluation systems, the CSC recently introduced the SPMS after its pilot test in 2011. Like its predecessor, PMS‐OPES, the SPMS seeks to link individual performance with the agency's organizational vision, mission, and strategic goals. It makes use of existing performance evaluation and management systems and links performance management with other human resource (HR) systems.

Basic elements:1. Goal aligned to agency mandate and organizational priorities.

2. Outputs/outcomes‐based.

3. Team approach to performance management.

4. User‐friendly.

5. Information system that supports monitoring and evaluation.

6. Communication plan.

June 2013 ‐ December 2014

1. Creation of PMT in DBM2. Implementation of SPMS in DBM

‐ Initial implementation of conditionally approved SPMS to be done on January 2014‐ Conduct of SPMS Briefing completed‐ Created unit PMTs at Bureau/Service/ Office ‐ DBM tailored‐fit SPMS Guidelines submitted to CSC on 1 September 2013 ‐ PMT of DBM created

29 International Organization for Standardization (ISO) certification for DBM

This is in pursuit of DBM’s objective to adopt ISO 9001:2008 Quality Management System (QMS) in the Department, with the budget and management process as its scope, and as part of its effort to secure ISO certification.

The DBM’s establishment of an ISO 9001:2008 QMS shall provide the Department a globally recognized standard that could address its requirements for effective systems management and support its efforts to strengthen and promote good governance in government.

2012‐2016

1. Approval of Quality Management System (QMS)2. QMS implementation3. Conduct of Internal Quality Audit4. Obtain ISO Certification

‐ Technical guidance on QMS implementation‐ Approval of QMS documents and cascading to all DBM employees through Directors and Assistant Directors ‐ Training Workshops on ISO 9001:2008 QMS/GQMS Requirements and Documentation and Basic Quality and Productivity Improvement Approaches‐ Identification of ISO Core Team

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Project/ Activity Title Description Timeline Outputs/Results Status as of December 31, 2013Future Reforms30 Budget Innovations This term was coined by the EXCOM. It refers to all

future reforms that will be led by the budget framework and strategy/ group

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