Budget and Management Bureau - A
Overview of
Organizational Performance
Indicator Framework
DEPARTMENT OF TOURISM
10 September 2008
By:
Director RICALINDA N. ADRIATICO
Budget and Management Bureau - A
OUTLINE
I.
Organizational Performance Indicator
Framework (OPIF)
i.
OPIF as key component of Public
Expenditure Management (PEM)
ii.
Logical Framework Approach to OPIF
iii.
Performance Indicators
II. DOT’s FY 2008-2009 Budget
Budget and Management Bureau - A
Public Expenditure
Management (PEM)
is a public sector resource allocation
system that:
 Gives reasonable assurance that new
expenditures approved for a budget
year can be funded over the medium
term, and
 Accords priority to expenditures that
are oriented towards achieving
desired outcomes.
Budget and Management Bureau - A
PEM OBJECTIVES
 Aggregate Fiscal Discipline
- living within our means
 Allocative Efficiency
- spending on the “right things” or “right
priorities”
 Operational/Technical Efficiency
- obtaining the best value for money
Budget and Management Bureau - A
KEY COMPONENTS OF PEM
 Medium-Term Expenditure Framework
(MTEF)
 Organizational Performance Indicator
Framework (OPIF)
 Accountability/Flexibility Mechanism
 Performance Incentives Consequences
 Support Mechanism
Budget and Management Bureau - A
Organizational Performance
Indicator Framework (OPIF)
 A mechanism that induces government
agencies to focus their efforts on
delivering high/medium priority
programs/activities/projects (PAPs) at
reasonable cost and qualities.
 A set of guidelines and structures for
the identification of performance
indicators of government
organizations.
Budget and Management Bureau - A
The Logframe
Demonstrating a causal link between
what you do, why, and how
Budget & Management Bureau A
What is a Logframe?
Links outcomes and outputs
 Systematic and reasoned description
 Helps relate organizational activities to
its outcomes
Budget & Management Bureau A
Alternative Terminology for OPIF
OPIF Terms
Results Chain
Societal Goal
Impacts
Sectoral Goals
Organizational
Outcomes
Outcomes
MFOs
Outputs
P/A/Ps
Activities
Budget & Management Bureau A
Societal Goals
 Societal benefits derived from cumulative sectoral
impacts
 Highest level of goals – the end points to be aimed for
 Are longer-term impacts achievable over a long period
 Influenced by a broad range of factors, some are
beyond agency’s control
 Government’s ultimate policy objective, i.e.
Government has the primary role in specifying
outcomes
 Medium-Term Philippine Development Plan (MTPDP) or
other policy statements by the President
 Reflective of the Millennium Development Goals
Budget & Management Bureau A
Societal Goals
“Economic growth towards poverty
reduction”
Budget & Management Bureau A
Sectoral Goals
 Longer term sectoral impacts derived from the
organizational outcomes
 Influenced by a broad range of factors, some are
beyond agency’s control
 Intermediate, high level end-point leading to the
Societal Goal
 Government specifics sectoral goals, as
intermediate outcomes towards the ultimate
societal goals
Budget & Management Bureau A
Sectoral Goals
“Increased contribution of tourism to
the national economy”
Budget & Management Bureau A
Organizational Outcomes
 Concrete short to medium term impacts on,
or benefits to clients and the community
 Contribute to achievement of sectoral and
societal goals
 Departments are able to strongly influence
outcomes
Budget & Management Bureau A
Organizational Outcomes
“Increased international visitors”
“Diversified tourism products and services”
“Increased quality of visitor experience”
“Widen tourism beneficiaries”
Budget & Management Bureau A
Major Final Outputs
 Goods and services that a department or agency is
mandated to deliver to external clients, funded by the
Budget
 Consumed outside of the department or agency (i.e., end
user is external)
 Achieved through implementation of programs, activities
and projects (PAPs)
 Contribute directly to attainment of organizational
outcomes
 Within the control of the department or the agency
 Tangible and more easily quantified than outcomes
Budget & Management Bureau A
Major Final Outputs
“Tourism promotion services for
international and domestic
visitors”
Budget & Management Bureau A
Programs/Activities/Projects (PAPs)
Key activities or integrated group of
activities (programs) and projects
undertaken by the department/agency to
achieve MFOs
Budget & Management Bureau A
Programs/Activities/Projects (PAPs)
MFO 1 – Tourism promotion services for
international and domestic visitors
 Participation in international travel fairs, exhibits,
and conferences
 Public relations and information dissemination
 Promotion of tour packages
 Organization and promotion of special events
 Production of information materials and collaterals
 Conduct of sales missions
Societal Goal
Sectoral Goals
Which leads to…
Organizational
Outcomes
Which leads to…
MFOs
Which leads to…
P/A/Ps
Increasing Level of Accountability
Which leads to…
Increasing Capacity to Influence
Budget & Management Bureau A
Influence and Accountability
in the LOGFRAME
Budget & Management Bureau A
Constructing a Logframe
 Can be “top-down”, or “bottom-up”
 Top down: starting with outcomes and working “down” to
outputs and activities
 Bottom up: starting with activities and outputs and
working “up” towards outcome
 Source documents include:





Mandates and legislation
Government planning (such as MTPDP, SPM, etc.0
Policies
Performance monitoring and/or evaluation reports
Departmental planning
 Should be produced through a stakeholder
consultation process
Budget & Management Bureau A
How is a Logframe Used?
 Tells a story about why, what and how your
agency delivers its services
 Helps agency focus on core activities that
deliver benefits
 Helps set priorities for allocating resources by
identifying critical outputs and activities
 Can be used as the basis for corporate planning
 Provides direction towards identification of
performance indicators
Budget & Management Bureau A
Performance Indicators
NBC 501 (2005) defines performance
indicators as:
“performance measures to be used for the
assessment of the delivery of MFOs
contributing to organizational outcomes”
Budget & Management Bureau A
Performance Indicators
 Two types of Performance Indicators:
For Organizational Outcomes
For MFOs
 Performance indicators for MFOs are
important, but it is also important to monitor
outcomes
 Initial focus under OPIF is on performance
indicators for MFOs
Budget & Management Bureau A
Performance Indicators
Quantity
Quality
How
Much
How
Well
did we do?
did we do it?
(#)
(%)
Client satisfaction,
access, timeliness,
accuracy, cost
Budget & Management Bureau A
Performance Indicators
Efficiency
Did we do it right?
Effectiveness
Did we do right thing?
Budget & Management Bureau A
Performance Indicators
Output Indicators:
 No. of promotion and information drives
undertaken in key tourist markets
 No. of media invitees
 No. of tour operators accredited
Outcome Indicators:
 No. of tourist arrivals
 Tourism receipts
 No. of jobs generated
Budget & Management Bureau A
Characteristics of Good PIs
 S - Specific – relate to results you are trying to achieve
 M - Measurable – stated in quantifiable terms
 A - Achievable – realistic in what is to be achieved
 R - Relevant – logically related to MFO described
 T - Time-bound – stated with target dates
Budget and Management Bureau - A
FY 2008 Budget
The funds to cover the FY 2008 requirements for
10% Salary Increase, including corresponding
adjustments in Year-End Benefits (YEB) and
government counterpart contributions in
PHILHEALTH, ECIP and RLIP of national
government personnel pursuant to:
EO No. 611 – effective July 2007, and
EO No. 719 – effective July 2008
SARO – Released the full requirements till
December 31, 2008, while
NCA – Released up to September 30, 2008.
Budget and Management Bureau - A
FY 2008 Budget
Amount in Thousand Pesos
PS
MOOE
CO
TOTAL
Appropriation
257,550 1,188,059
27,647
1,473,256
Released Allotment
178,644
699,315
12,169
890,128
78,906
488,744
15,478
583,128
Unreleased
Released Allotment is equivalent to:
PS = January 1 to September 30, 2008
MOOE & CO = Jan. 1 to Mar. 31 (Obligational Authority)
plus 50% of the Not Needing Clearance (NNC)
of the ABM or April 1 to August 15
requirements
Budget and Management Bureau - A
FY 2008 Budget
Amount in Thousand Pesos
PS
MOOE
CO
TOTAL
For Later Release
59,597
409,914
-
469,511
Needing Clearance
19,309
78,830
15,478
113,617
Unreleased
78,906
488,744
15,478
583,128
“For Later Release” is subject to the results of
the Agency Performance Review (APR) as
provided under NBC No. 515 dated March
25, 2008, re: Guidelines on the Release of
Funds for FY 2008.
Budget and Management Bureau - A
FY 2008 Budget
 Results of the APR covering the period January to June, 2008
shall be used as basis in determining the necessity of
additional release of funds to cover the 4th quarter operating
requirements of the agency.
 The APR shall be based on the submission of the ff:
 Budget Execution Documents (BEDs)
 Physical and Financial Plan
 Monthly Cash Program
 Estimate of Monthly Income
 Budget Accountability Reports (BARs)
 Quarterly Physical Report of Operations
 Quarterly Financial Report of Operations
 Quarterly Report of Actual Income
 Statement of Allotment, Obligations and Balances
 Monthly Report of Disbursements
Budget and Management Bureau - A
FY 2008 Budget
“Needing Clearance” portions pertains to the
Congressional Initiatives which shall be
released upon submission of the following:
 Endorsement of the following:

Lower House – Speaker of the House and
Chairman, Committee on Appropriations

Upper House – Senate President and
Chairman, Committee on Finance

DOT Secretary
 Project Profile
 Performance Targets/Outputs consistent with the
OPIF
Budget and Management Bureau - A
FY 2009 Budget
 Increase in RATA
KEY POSITIONS
FY 2008
GAA
FY 2009
NEP
Dept. Secretaries
9,500
10,900
Dept. Undersecretaries
7,500
8,600
Dept. Assistant Secretaries
6,700
7,700
Bureau Directors & Dept. Regional
Directors
6,000
6,900
Asst. Bureau Directors
5,400
6,500
Asst. Bureau Regional Directors
4,800
6,000
Chief of Divisions
3,500
4,000
Budget and Management Bureau - A
FYs 2007 - 2009 Budget
FY 2007
GAA
Php1,379,442,000
FY 2008
GAA
FY 2009
NEP
Php1,473,256,000
Php1,523,284,000
Budget and Management Bureau - A
In everything you do
put GOD first,
and He will direct you
and crown your efforts
with success
Proverbs 3:6
Budget and Management Bureau - A
Thank You
and Good Day to
Everyone!