Translating Commitments Into Action
Through Strategic Partnerships
PFM REFORM ROADMAP: A STATUS REPORT
“kung walang corrupt, walang mahirap.”
... growth that benefits all and leaves no one behind.
The two years that was…..
…….Years 2010-2012
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)
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
Public Financial Management
Results Framework
Reform Objectives
Improved Service Delivery | Transparency | Fiscal Discipline |
Allocation Efficiency | Operational Efficiency
Reform Outputs
Policy
 Accounting & Auditing
Standards
 Unified Accounts Code
Structure
 Performance Informed
Budgeting
 Contingent Liability
Framework
 Treasury Single Account
Systems &
Process
People &
Organisations
 GIFMIS
 Treasury Reporting
and Monitoring
System (TRAMS)
 Comprehensive
Human Resource
Information System
 PFM Competency
Framework
 Capacity Building
 Change Management
10
YEAR 2O12-PRESENT
The Building Blocks
Policy Reforms
Unified
Accounts
Code
Structure
(UACS)
Financial
Accountability Reports
(FARs)
Accounting
and
Auditing
Reforms
Cash
management
- Treasury
Single
Account (TSA)
PerformanceInformed
Budgeting
(PIB)
Systems and Processes
GIFMIS
Conceptual
Design
Comprehensive
Human
Resource
Information
System
System for
Liability
Management
TSA
Reporting
System
IT Systems
Improvement
People and Organization
PFM Competency
Learning & Development
Awareness Raising
Governance Structure: PFM Committee and Project Implementation Units
SPENDING AGENCIES/LEGISLATIVE/CIVIL SOCIETY
Strategic Partnerships
Oversight
Agencies
Implementing
Agencies
Civil Society
PFM
Development
Partners
Partner
Agencies
Legislative
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
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
Accounting and Auditing Reforms
 Twenty-five Philippine 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
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
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
Performance Informed Budgeting
 Information for legislators to hold Government
to account for how they spend citizens’ money
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
 A better understanding for oversight agencies
of how agencies spend their money and what
they achieve with it
 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
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
Comprehensive Human Resource
Information System
 Comprehensive Human Resource Information
System is an integrated 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
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
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
Learning and Development
 Training on the Philippine Government Internal Audit
Manual (PGIAM)
 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)
Development of PFM Competency
Framework
 PFM Competency Framework is
a holistic government approach to
capacity development among
oversight and spending agencies.
 Envisions a strong backbone consisting of
PFM practitioners in 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-based training linked to
performance management and career progression of 60,000 plus
PFM practitioners
Awareness Raising
 Communications
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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
Now to 2016
•Savings/
income rules
•AP- FIFO
Common
PFM
Policies &
Rules
Internal/
External
Audit
•Bottom line is
outcomes
•NGA Performance
contracts
“PFM”
Agency
•COA Audit used
for decision
making
PFM
Manual
PFM
Competency
Performance
Management
Foundation
GIFMIS Conceptual Design
“to be” business processes for
the Treasury Single Account
(TSA)
Comprehensive Human
Resource Information System
Unified Accounts Code
Structure (UACS)
Financial Accountability
Reports
PFM Competency
Performance-Informed
Budgeting (PIB)
PPSAs/
PPSSAs/ Revised CoA
Awareness & Training
Governance Structure:
PFM Committee and Project Implementation Units
SPENDING AGENCIES/LEGISLATIVE/CIVIL SOCIETY
System for Liability
Management
Thank You