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OTHER BUDGETARY REFORMS

OTHER BUDGETARY REFORMS. (A Presentation for the 27 th DepEd National Seminar/Workshop on the Preparation and Reconciliation of the CY 2012 Mid-Year Financial Reports) July 23, 2012, Tagaytay City. By: Assistant Director Dante B. De Chavez, DBM BMB-B. OUTLINE OF PRESENTATION.

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OTHER BUDGETARY REFORMS

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  1. OTHER BUDGETARY REFORMS (A Presentation for the 27thDepEd National Seminar/Workshop on the Preparation and Reconciliation of the CY 2012 Mid-Year Financial Reports) July 23, 2012, Tagaytay City By: Assistant Director Dante B. De Chavez, DBM BMB-B

  2. OUTLINE OF PRESENTATION • National Budget Circular No. 532 • Creation of an Account Management Team (AMT) • Performance-Based Incentive System and Cascading of Performance Targets • Improving compliance with BEDs and BARs

  3. National Budget Circular No. 532Guidelines on the Review of Major Final Outputs (MFOs) and Performance Indicators (PIs) and Restructuring of Programs, Activities and Projects (PAPs)

  4. Integrating OPIF into NEP(NBC 532) Refine MFOs to capture mandates/business lines of department Have an integrated set of performance indicators (PIs) w/c cover quantity, quality, timeliness, cost Restructure PAPs to establish links with MFOs for better cost estimation and expn. Prioritization Develop standards for OPIF throughout government by applying common methodology to the exercise

  5. Creation of an Account Management Team (AMT)

  6. Goal of the AMT DBM as the expert on expenditure management should be able to nudge, in coordination with the departments/agencies, their spending levels and rates to align them to the DBCC quarterly disbursement targets to support growth target.

  7. Functions Come up with new initiatives to improve performance such as reviewing internal processes in formulating MCPs, and adjust MCPs for the rest of the year, in the context of DBCC targets ; Review and assist in improving internal processes in recording/consolidating financial reports from the lowest operating units to the central office for timely submission to DBM; Develop metrics, leading indicators (e.g., bidding schedules), to guide departments towards achieving monthly and quarterly disbursement targets;

  8. Functions Draw up strategy maps showing cause-effect linkages towards achieving financial targets (horizontal – internal workflow processes; vertical – top-down manner, i.e., top management down to middle management to offices at the regional /district/provincial/school) Assess regularly the financial performance of the departments; Update scorecards monthly: financial, nonfinancial, internal processes

  9. Expected Output • Revised MCPs for Quarters 2 to 4 of the current year, with monthly breakdown and assumptions; • Justification/s for below target performance during quarter 1 and factors affecting performance; • Proposed measures or catch-up plans to improve financial performance for the rest of the year; and • Summary of Observations, Findings, and Recommendations

  10. Schedule of Meetings and Reporting • Meet regularly twice a month -first and last weeks of the month • Submit report thru the BTS (re: progress of work of each individual department)

  11. Performance-Based Incentive System and Cascading of Performance Targets

  12. Task Force Members: NEDA DBM OP DOF PMS Government Oversight Partners: CSC GCG CESB CHED COA Ombudsman NCC Technical Secretariat: Inter-Agency Task Force on Harmonization of National Government Performance Monitoring, Information and Reporting Systems (Administrative Order No. 25, s. 2011)

  13. Outputs of the Task Force • Harmonized Results-Based Performance Management System (RBPMS) • Using the Five KRAs, OPIF and the RM as underlying frameworks • RBPMS as basis and transparency mechanism of the performance-based incentives • Performance-Based Incentive (PBI) System

  14. Harmonized Results-based Performance Management System (RBPMS) SONA/ SER Socio-Economic Report PPARCPriority Program Accountability Report Card MARC- I MFO Accountability Report Card MARC- II Management Accountability Report Card Strategic Performance Management System (Individual) To quality for PBB, agencies must meet at least 90% of PPARC and MARC-I, and satisfy MARC-II (good governance conditions)

  15. Draft EO Directing the Adoption of a Performance-Based Incentive (PBI) System for Government Employees

  16. Performance-Based Incentive System • PBI system consisting of the Productivity Enhancement Incentive (PEI) and the Performance-Based Bonus (PBB) shall be adopted in the national government beginning FY 2012. • PEI at P5,000 shall continually be granted across-the- board • PBB, which is a top-up bonus, shall be given to personnel of bureaus or delivery units in accordance with their contribution to the accomplishment of their Department’s overall targets and commitments

  17. Adoption of a PBI System • Flexibility shall be given to heads of departments to suit the PBB system to the nature of their operations • Adoption of a communications strategy and publication of performance targets and accomplishments in the website to ensure transparency and accountability

  18. Criteria and Conditions to qualify for PBB • Achieved at least 90% of MFO targets and Priority Program targets agreed with the President under the five Key Result Areas of EO 43 • Meet 2 to 3 good governance conditions/ requirements set by the AO 25 Task Force annually under the performance drivers of the RBPMS • Bureaus within the department meeting above conditions are forced ranked and the personnel within them 18

  19. Performance Categories (1) Department Secretaries shall rank the bureaus or delivery units, including attached agencies, according to their performance following a normal distribution.

  20. Performance Categories (2) For 2012, the Bureau Heads shall rate employees using their respective Performance Appraisal Systems Below Satisfactory Rating – No PBB

  21. PBB Rates of Incentives

  22. Coverage • All Departments/Agencies, other Offices of the National Government, State Universities and Colleges (SUCs), and Government-Owned or-Controlled Corporations (GOCCs) are covered. • The Governance Commission on GOCCs (GCG) is encouraged to adopt the policies and principles in the EO and issue guidelines for GOCCs covered under RA 10149, pending formulation of a compensation system for GOCCs.

  23. Implementation Schedule

  24. (Proposed) Circular on the Cascading of Department Performance Targets to Bureau Level or Equivalent Offices

  25. Criteria for the Grant of PBB • In order to be eligible for the PBB, the department/agency should cascade its MFO performance targets, as declared in the OPIF and those targets under the 5 Key Result Areas of the President’s Social Contract, into bureau or equivalent office-level targets.

  26. Guidelines in Cascading Department Targets (1) • Review MFOs, PIs, and targets as declared in the OPIF Book of Outputs for CY 2012, and the key program/project targets related to the 5 Key Result Areas • Select or prioritize at least 3 performance indicators for each MFO to capture the dimensions of quantity, quality, and timeliness • Key programs/projects with performance targets for CY 2012 agreed with the President shall also be included

  27. Guidelines in Cascading Department Targets (2) • Identify component bureaus/equivalent offices responsible for the delivery of the MFOs and those belonging to STO & GASS • The department must submit to DBM the revised MFOs, PIs and PTs together with the original ones if there are adjustments needed in its specification

  28. Timelines in Cascading Department Targets • Submission to the DBM of the accomplished templates not later than August 30, 2012 • DBM shall review and approve submissions as to the consistency of identified bureau/office/unit targets with the overall department/agency performance targets • Approved cascaded MFOs, PIs and PTs and quarterly accomplishments Department/agencies shall be published in department/agency websites or official publications for transparency

  29. Schedule of Activities (1)

  30. Schedule of Cascading Workshops

  31. Schedule of Activities (2)

  32. Schedule of Activities (3)

  33. Improving compliance with BEDs and BARs

  34. BEDs/BARs

  35. BEDs/BARs

  36. Improving agency compliance of BEDs and BARs to DBM • Remind agencies thru call-up letters / phone; • Encourage on-line submission of reports i.e. SAOB; • Close coordination with agencies and provide technical assistance, if necessary; • Post in the DBM website, the reports submitted by agencies • and highlight the agencies with no submission; • Implement the “no-report, no-release” policy.

  37. Thank you for your kind attention

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