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

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

4. “kung walang corrupt, walangmahirap.” ... growth that benefits all and leaves no one behind.

5. The two years that was….. …….Years 2010-2012

8. 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)

9. 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

10. Public Financial Management Results Framework • Improved Service Delivery | Transparency | Fiscal Discipline | Allocation Efficiency | Operational Efficiency Reform Objectives Reform Outputs People & Organisations Systems & Process Policy • PFM Competency Framework • Capacity Building • Change Management • GIFMIS • Treasury Reporting and Monitoring System (TRAMS) • Comprehensive Human Resource Information System • Accounting & Auditing Standards • Unified Accounts Code Structure • Performance Informed Budgeting • Contingent Liability Framework • Treasury Single Account

11. The Building Blocks YEAR 2O12-PRESENT Policy Reforms Unified Accounts Code Structure (UACS) Financial Accounta-bility Reports (FARs) Accounting and Auditing Reforms Cash management - Treasury Single Account (TSA) Performance-Informed Budgeting (PIB) Systems and Processes Comprehensive Human Resource Information System System for Liability Management TSA Reporting System IT Systems Improvement GIFMIS Conceptual Design People and Organization PFM Competency Awareness Raising Learning & Development Governance Structure: PFM Committee and Project Implementation Units SPENDING AGENCIES/LEGISLATIVE/CIVIL SOCIETY

12. Strategic Partnerships

13. 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

14. Harmonized Financial Accountability Reporting Requirements of Oversight Agencies • 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

15. Accounting and Auditing Reforms • Twenty-fivePhilippine Public Sector Accounting Standards & Twenty-four Philippine Public Sector Standards on Auditing • Aligned with international standards, concepts and best practices for accounting and auditing • Ensure transparent and comparable financial statements • Enhancing the quality and uniformity of auditing practice throughout the Philippines and strengthening public confidence in the auditing and assurance profession

16. Improved Treasury Cash Management Operations • Treasury Single Account • Custody • Central Bank • MOA Signed in November 2013 • 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

17. Improved Treasury Cash Management Operations • 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) • Closure of All NGAs Dormant Accounts • 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

18. Performance Informed Budgeting • Information for legislators to hold Government to account for how they spend citizens’ money • A better understanding for oversight agencies of how agencies spend their money and what they achieve with it 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 • Increasing government agencies’ ability to prioritize spending initiatives to get the best results for resources used • Enabling the citizens(either directly or through civil society and the media) to see how government spends their money and hold them to account

19. GIFMIS Development • Government Integrated Financial Management Information System is an integrated IT solution that can collect and organize financial information in a central database • Goal: Harmonized and improved PFM business processes/ rules to facilitate analysis and decision making, and increase efficiency Procurement Ongoing GIFMIS Conceptual Design adopted in 2012 GIFMIS Terms of Reference, Bidding Documents finalized in August 2013 Expected date of contract signing in June 2014

20. Comprehensive Human Resource Information System • Comprehensive Human Resource Information System is anintegrated 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 Procurement of CHRIS Solutions Provider in progress Shortlisted 7 eligible bidders Contract awarding - late February 2014

21. Current Systems Improvement (in preparation for GIFMIS) Online Submission of Budget Proposal (OSBP) 2014 Budget submitted online Enhanced OSBP (ready by 2014) 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) For implementation starting November 2013 Upgrading of eNGAs & eBudget To make it UACS-compliant Ready by February 2014

22. System for Liability Management • Establishment of a database of Government-Owned and -Controlled Corporations (GOCCs) to facilitate a centralized monitoring and management of guaranteed loans • 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

23. Learning and Development • Trained • Internal audit personnel from 74 agencies and GOCCs Training on UACS and OSBPS • Trained • Budget Officers of the different NGAs (767 from 212 agencies) • Planning and Budget Officers of SUCs (149 from 112 SUCs) • DBM technical staff from central and regional offices (265) Training on the Philippine Government Internal Audit Manual (PGIAM)

24. Development of PFM Competency Framework PFM Competency Framework is a holistic government approach to capacity development among oversight and spending agencies. Envisions a strong backboneconsisting of PFMpractitionersin 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 Competency development as a core strategy for building capacity and managing behavioral change Addresses need for GOP competency-basedtraininglinked to performance managementand career progression of 60,000 plus PFM practitioners

25. Awareness Raising • Communications • PFM Brand Book Completed • Website redesigning completed • Distribution of UACS, GIFMIS, TSA, CHRIS, LM Project Briefs ongoing • Released three (3) PFM Newsflash Articles to NGAs through DBM-TIS and DevComnet • PFM Annual Report • Briefing on the Guidelines in the Submission of Budget Execution Documents (BEDs) for 2014 (Nov 6,7,8, and 12) • Briefing on UACS for IT staff and accountants (Dec 11) • Production of AVPs • Completed: PFM Reform Roadmap and Champions, PFM Teasers and TSA • Ongoing: UACS

26. Now to 2016 • Savings/ income rules • AP- FIFO • COA Audit used for decision making Foundation GIFMIS Conceptual Design Internal/ External Audit “to be” business processes for the Treasury Single Account (TSA) Unified Accounts Code Structure (UACS) Performance-Informed Budgeting (PIB) • Bottom line is outcomes • NGA Performance contracts Common PFM Policies & Rules PFM Competency “PFM” Agency Comprehensive Human Resource Information System Financial Accountability Reports System for Liability Management PPSAs/ PPSSAs/ Revised CoA PFM Manual Performance Management PFM Competency Awareness & Training Governance Structure: PFM Committee and Project Implementation Units SPENDING AGENCIES/LEGISLATIVE/CIVIL SOCIETY

27. Thank You