OTHER BUDGETARY
REFORMS
(A Presentation for the 27th 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
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1 DBM BMB-B
1 B. De Chavez,
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
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National Budget Circular No. 532
Guidelines on the Review of Major Final
Outputs (MFOs) and Performance Indicators (PIs)
and Restructuring of Programs, Activities and
Projects (PAPs)
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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
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Creation of an Account
Management Team (AMT)
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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.
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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;
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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
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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
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Summary of Observations, Findings, and Recommendations
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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)
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Performance-Based Incentive
System and Cascading of
Performance Targets
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Inter-Agency Task Force on Harmonization of National
Government Performance Monitoring, Information and
Reporting Systems (Administrative Order No. 25, s. 2011)
Task Force Members:
NEDA
DBM
OP
DOF
PMS
Government Oversight Partners:
CSC
CESB
COA
Ombudsman
NCC
GCG
CHED
Technical
Secretariat:
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Outputs of the Task Force
1. 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
2. Performance-Based Incentive (PBI) System
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Harmonized Results-based Performance Management System (RBPMS)
Societal Goals/Outcomes
SONA/
SER
SocioEconomic
Report
Sectoral Goals/Outcomes
Good
Governance
and AntiCorruption
Human
Development
& Poverty
Reduction
Economic
Development
Security,
Justice, and
Peace
Climate
Change
Adaptation
PPARC Priority
Program
Accountability
Report Card
Organizational Outcomes
MARC- I
Major Final Outputs (Citizen-focused Service & Product Results)
Financial Stewardship
Internal Process
Leadership, Learning and
Growth
MFO
Accountability
Report Card
MARC- II
Management
Accountability
Report Card
Strategic Performance Management System (Individual)
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To quality for PBB, agencies must meet at least 90% of PPARC and MARC-I,
and satisfy MARC-II (good governance conditions)
Draft EO Directing the Adoption of a
Performance-Based Incentive (PBI)
System for Government Employees
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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.
1. PEI at P5,000 shall continually be granted across-the- board
2. 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
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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
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Criteria and Conditions to qualify for PBB
1. Achieved at least 90% of MFO targets and Priority
Program targets agreed with the President under
the five Key Result Areas of EO 43
2. Meet 2 to 3 good governance conditions/
requirements set by the AO 25 Task Force annually
under the performance drivers of the RBPMS
3. Bureaus within the department meeting above
conditions are forced ranked and the personnel
within them
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Performance Categories (1)
Department Secretaries shall rank the bureaus or
delivery units, including attached agencies, according
to their performance following a normal distribution.
Bureaus/Delivery Units
Distribution
Rating
10%
Best
25%
Better
50%
Good
15%
Poor
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Performance Categories (2)
For 2012, the Bureau Heads shall rate employees
using their respective Performance Appraisal Systems
Personnel within the
Bureaus/Delivery Units
Distribution
10%
25%
65%
Rating
Best
Better
Good
Below Satisfactory Rating – No PBB
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PBB Rates of Incentives
Individual Category
Bureau
Category
Best
Performer
Better
Performer
Good
Performer
Best Bureau
35,000
20,000
10,000
Better Bureau
25,000
13,500
7,000
Good Bureau
15,000
10,000
5,000
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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.
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Implementation Schedule
Executive Briefings/
Orientations
Cascading Workshops
with Agencies
Consultation/ Coaching
of Agencies
(July 2012)
(July 2012)
(July 2012)
Submission of
Accomplishment
Reports
Review/Approval of
Agency Performance
Targets
Submission of Cascaded
Performance Targets
(1st week of December)
(September)
Evaluation of
Performance
Grant of Bonus
(2nd week of December)
(August 2012)
(4th week of December)
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(Proposed) Circular on the
Cascading of Department
Performance Targets to Bureau
Level or Equivalent Offices
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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.
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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
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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
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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
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Schedule of Activities (1)
Date
Activity
Target Participants
Role of Interagency Counterparts
July 12
(am)
Briefing with BMBs of
DBM
DBM BMBs
July 12
(pm)
Briefing of CSC, CESB,
CHED, NEDA
counterparts (who will
join composite team)
CSC Field Directors, sector
staffs from NEDA, CESB,
CHED participants
Participants; identify their BMB
counterparts
July 1620
Executive Briefing by
Cluster
Heads of Departments
and Undersecretaries
Concerned Interagency counterpart
to observe
July 25Aug 2
Workshop on
Cascading Performance
Targets for Agencies
(by Cluster)
Undersecretary for
Finance and Admin,
Planning Officer, Budget
Officer, Finance Officer
Counterparts to assist covered
agencies in selecting strategic PIs,
cascading PTs and to check
consistency with Cluster targets,
President’s directives, RM
July 25 –
August
25
Consultation/Coaching
of Agencies (on need
basis)
Agencies needing
assistance
Counterparts to lend assistance,
monitor progress and compliance of
covered agencies
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Schedule of Cascading Workshops
Date
Clusters
Responsible Task
Assigned BMB/
Force Member (to be Oversight Agency
identified)
July 25
-Economic Development
- Constitutional Bodies
DOF Secretary/ NEDA BMB- A, C, D, CSC, CESB,
Secretary
NEDA
July 26
-Security, Justice and
Peace
-Climate Change
Adaptation and
Mitigation
- Human Development
and Poverty Reduction
DBM Secretary/
OES/OP/ CSC Chair
BMB- A, B, D, E, F, CSC,
CESB, NEDA,
July 30
OEOs (batch 1 and 2)
OES/PMS
All BMBs, CSC, CESB,
NEDA, GCG
Aug 2
OEOs (batch 3)
OES/PMS
All BMBs, CSC, CESB,
NEDA, GCG
July 31
SUCs
CHED Chair
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CHED, BMB- B, DBM30 CESB, NEDA
ROs, CSC,
July 27
Schedule of Activities (2)
Date
Activity
Target Participants Role of Interagency counterparts
On or
before
August 30
Submission of
Cascaded Performance
Targets of Agencies
All agencies
On or
before
September
15
First-pass Review
Agency submission
September
17-21
Second-pass Review of
Agency Performance
Targets
By Task Force
BMBs, CHED, GCG to present evaluation
to the Task Force
September
22-30
Final-review and
issuance of notices of
approval
By DBM
BMBs, CHED, GCG to prepare notices;
coordinate with covered agencies;
monitor compliance re: posting
GCG to receive the submission of covered
GOCCs; furnish e-copy TF Secretariat;
CHED to receive the submission of SUCs
Interagency counterparts to join BMB
review of covered agencies;
CHED in consultation with DBM
counterparts to review submission of
SUCs for consistency with OPIF Book of
Outputs FY 2012, HERA, Cluster targets;
forward evaluation/recommendation to
DBM
GCG to review submission of GOCCs;
forward evaluation/recommendation to
DBM
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Schedule of Activities (3)
Date
Activity
Target Participants
Role of BMBs
October
Conversion of Agency
Performance Targets into
Agency Scorecards
All agencies
Counterparts to assist the TF
Secretariat in checking the
Scorecards for consistency
2nd week
October
Submission of Agency
Accomplishment Report as
of 3rd Qtr
All agencies
BMBs/CHED/GCG to evaluate agency
accomplishments-to-date vis-à-vis
targets; monitor compliance with
deadlines
1st week
of
December
Submission of Agency
Accomplishment Report as
of EO November
All agencies
BMB/CHED/GCG s to monitor
submission
2nd week
of
December
Evaluation of Agency
Performance
By DBM and
counterparts from
oversight agencies
Counterparts to evaluate
accomplishments vis-à-vis targets of
covered agencies
3rd week
of
December
Presentation of Evaluation
to the TF and multi-sectoral
review body
Task Force, multisectoral review
body
BMBs/CHED/GCG to present
evaluation
4th week
of
December
Grant of Bonus
Qualified agencies
BMBs/CHED/GCG to prepare notices
and coordinate release of bonus
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Improving compliance with
BEDs and BARs
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BEDs/BARs
Type of Report
Form No.
Period of
Submission
A. ANNUAL BEDs
Physical and Financial Plan
BED 1
Monthly Cash Program
BED 2
On or before
Estimate of Monthly Income
BED 3
Feb. 15 each
List of Not Yet Due and Demandable Obligations
BED 4
year
Quarterly Physical Report of Operation
BAR 1
On or before
Quarterly Financial Report of Operation
BAR 2
the 10th day
Quarterly Report of Income
BAR 3
ff. the qtr.
B. BARs
QUARTERLY
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BEDs/BARs
Type of Report
Form No.
Period of
Submission
B. BARs
MONTHLY
Statement of Allotment, Obligations and
On or before
Balances
Quarterly Report of Income
BAR 4
the 10th day
BAR 5
of the ff.
month
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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.
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