PHILIPPINES DEVELOPMENT FORUM
Working Group on Governance and Anti-Corruption
Accomplishment Report
Submitted on December 7, 2012
The Philippine Development Forum (PDF) Working Group on Governance and Anti-Corruption (WG
on GAC) has three sub-working groups: SWG on Anti-Corruption, Public Financial Management and
Procurement. The Working Group has met thrice since the last Philippine Development Forum held
in February 2011.
SUB-WORKING GROUP ON ANTI-CORRUPTION (as of 23 November 2012)
The Sub-Working Group on Anti-Corruption (SWGAC) was first convened last 6 July 2012 at the
Office of the Ombudsman. It is chaired by Ombudsman Conchita Carpio Morales and co-chaired by
the United Nations Development Programme Country Director. The purpose of the establishment of
PDF sub-working group is to carry forward, at the working level, the policy dialogue and necessary
actions plans relevant to support Philippine Government’s anti-corruption priorities.
Accomplishments
The SWGAC SWGAC had four (4) organizational meetings and one (1) strategic planning workshop. In
the course of these meetings and the planning workshop, the SWGAC was able to accomplish the
following:
1) Formulation of the Terms of Reference (ToR) of the SWGAC, including its membership and the
roles and responsibilities of the Secretariat. The PDG SWGAC, as per the agreed ToR, will serve
as a primary mechanism to:







Facilitate policy dialogue among government agencies, development partners and other
stakeholders;
Initiate a process to develop consensus and draft action plans;
Explore areas of cooperation and partnership-building;
Inform, coordinate and recommend to the PDF Working Group (WG) on Governance and
Anti-Corruption (GAC);
Identify overlaps / duplication of efforts towards resource optimization and donorcoordination;
Generate firm commitments on technical assistance and resource provision; and,
Provide a venue for joint monitoring and evaluation of programs and projects.
2) Development of the guidelines for inclusive participation of the broad networks of CSOs (to
include peoples organizations, academe, media, business sector and other sectors) in the
SWGAC. The participation of CSOs is by invitation, as may be needed by the SWGAC relevant to
particular issues/matters under consideration. The Secretariat is undertaking a comprehensive
list and mapping of CSOs for the information of the SWGAC and assistance in the selection of the
CSOs to be invited to its meetings.
3) Conducted the mapping of anti-corruption initiatives of the government agencies, development
partners and some CSOs as well as an initial inventory of inter-government/multi-sectoral
coordination mechanisms and publications / knowledge products relevant to anti-corruption.
4) Show tangible results through the development of major events led by the Office of the
Ombudsman to generate awareness and build public support around the various efforts of
Government and its partners to curb corruption. This includes the “March to Righteousness” on
9 December 2012 to commemorate the International Anti-Corruption Day and “UNCAC National
Multi-Stakeholder Dialogue” on 10-11 December 2012.
SUB-WORKING GROUP ON PUBLIC FINANCIAL MANAGEMENT (as of 26 November 2012)
Early last year, President Aquino issued Executive Order No.55 directing the integration and
automation of the public financial management (PFM) systems. Details of the government’s PFM
reform program are explained in the Philippine PFM Reform Roadmap: Towards Improved
Accountability and Transparency. The objective is to promote fiscal responsibility and good
governance through transparency and accountability in financial management. Under the combined
leadership of the Budget Secretary, the Finance Secretary , and the Chairperson of COA, an interagency PFM Committee comprised of DBM, COA, DOF and BTr is overseeing the implementation of
the PFM Reform Roadmap and six priority projects, as described below.
Accomplishments
1) Budget Reporting and Performance Standards Project. Reforms are ongoing to simplify and
consolidate data structures, and harmonize budgeting and accounting rules and regulations for
generating financial and physical reports for monitoring the performance of government.
 A harmonized budget classification and unified account code structure (UACS) was
formulated in 2012. The UACS manual is expected to be finalized by the end of 2012 and
implementation to occur in 2013 for the 2014 budget cycle.
 National Budget Circular No.532 was issued to guide agencies in restructuring major final
outputs (MFOs) and programs, activities, and projects (PAPs) items in the budget in order
to produce an output based budget. DBM also issued the revised OPIF Reference Guide in
2012.
2) Improvement of Treasury Cash Management Operations Project. Improvements are being
made to the government’s cash management so that accurate data on bank account balances,
revenue and cash positions and fund utilization provide fiscal managers with a reliable basis for
cash flow forecasting, short-term financing, and maintaining appropriate daily cash balances.
The aim is to increase operational efficiency of implementing agencies while minimizing the cost
of treasury operations.
 The TSA is being designed in 2012 and is on track to be pilot-tested in BTr in 2013, for full
implementation from 2014.
 Under Joint Administrative Order from DOF-DBM-COA, the government undertook an
inventory of bank accounts held by national agencies in 2012. This is a prerequisite to
shifting to the TSA. Results from the 274 agencies that completed the survey show many
thousands of accounts in operation.
3)
GIFMIS Development Project. A two-track approach to implementing an integrated IT solution
is proceeding. Track I is developing a centralized national payroll system (NPS) and government
human resource information system (GHRIS) that will enable spending agencies to electronically
process human resource and payroll information. Track II is developing a long-term GIFMIS
solution for budget preparation, execution and financial reporting. GIFMIS implementation is
targeted for 2016.
 A pilot NPS/GHRIS system was tested in six pilot agencies in 2012; DBM, COA, DOST-ASTI,
DOST-NCC, DOF and BTr. The pilot successfully identified a range of policy and business
processes that need to be addressed prior to implementing a centralized government-wide
system. Request for Information sessions with major software vendors were conducted to
inform functional and technical requirements as well a gauge the market and the ability of
the business community to deliver a system that will meet the government requirements.
 The conceptual design of the GIFMIS is on its way to being formulated in 2012. The output
is a “concept document” that includes a functional review of organizational frameworks
and processes, including recommendations for improving institutional capability and
capacity in financial management alongside the necessary procedural and organizational
changes for the GIFMIS implementation.
4)
Accounting and Auditing Reforms Project: The COA is continuing to enhance the government
accounting and auditing systems.
 A Citizen’s Participatory Audit (CPA) Project was launched on 26 November 2012 to
enhance transparency, accountability and citizen participation in the public audit process.
The CAMANAVA flood control project of DPWH was chosen as the first pilot audit.
 Philippine Public Sector Accounting Standards (PPSAS) are being harmonized with
international standards: the International Financial Reporting Standards (IFRS) and
International Public Sector Accounting Standards (IPSAS). 23 standards, which are
intended for implementation in 2013, are being exposed to various national and
international standard setting organizations. COA is also developing new PPSSAs as well
as an Integrated Results and Risk-Based Audit Approach System.
5)
Liability Management Project. The DOF is putting in place a system for managing the
government’s exposure to contingent and other liabilities.
 Through DOF’s Debt and Risk Management Division (DRMD) training has commenced on
identifying contingent liabilities, particularly for Public-Private Partnership (PPPs).
 A Government Owned and Controlled Corporations (GOCCs) monitoring system is being
established and the Debt Management and Financial Analysis System (DMFAS) identified as
the repository of GOCC debt data.
6)
Capacity Building Project. The importance of building capability to support PFM reform
implementation and change management is recognized. A whole-of-government integrated
training program for PFM capacity development is being designed. The conceptual framework
for this contains three phases: (i) information dissemination and awareness; (ii)
functional/technical training; and (iii) change management and behavioral change.
 As part of the first phase, more than a thousand government officials and other
stakeholders participated in formal briefing sessions on the PFM Roadmap in 2012. A

change readiness survey of 645 officials evidenced a good appreciation of the reforms and
the benefits of the proposed GIFMIS in particular.
The roll out of the Internal Audit Manual was started and 25 agencies were trained.
7) Others. The Philippines PFM Reform Program website was launched (www.pfm.gov.ph) as well
as the Budget ng Bayan.
SUB-WORKING GROUP ON PROCUREMENT (as of 7 November 2012)
Accomplishments
1) Country Procurement Assessment Report (CPAR). During the 15 April 2011 meeting of the PDF
SWG on Procurement, the Government of the Philippines (GOP), its development partners and
the represented CSOs agreed that there is a need to update the 2008 CPAR to fully assess the
impact of new activities and accomplishments on the country’s overall public procurement
environment, as well as its ongoing and future projects. The following activities were done for
the 2012 CPAR:
 In the assessments conducted by the CPAR Working Group, the Philippines’ procurement
system was rated 2.24 (with 0 as the lowest and 3 as the highest) using the OECD DAC MAPS.
The highest score of the Philippine Public Procurement System was in Pillar I: Legislative and
Regulatory Framework (2.56). This is followed by Pillar III: Procurement Operations and
Market Practices (2.22), Pillar II: Institutional Framework and Management Capacity (2.08),
and Pillar IV: Integrity and Transparency of the Public Procurement System (2.09)
 NEXT STEPS:
o November 12, 2012 -Transmittal by ADB of final draft to GPPB for review and agreement
to publish
o December 12, 2012 – Receipt by ADB of GPPB comments and agreement to publish
o January 15, 2013 – Publication of 2012 CPAR in time for distribution to the PDF meeting
in Jan. 30-31, 2013.
2) Agency Procurement Compliance and Performance Indicators (APCPI). The Agency
Procurement Compliance and Performance Indicators (APCPI), a self-assessment tool of
procuring entities was developed in the early part of 2010. In 2011, consultations meetings
were conducted with the different stakeholders for the review, study and enhancement of the
APCPI Tool, including pilot testing in eighteen (18) agencies in 2010. The Sub Working Group of
the Government Procurement Policy Board - Inter Agency Technical Working Group (GPPBIATWG) finalized the APCPI with four (4) Pillars, sixteen (16) Indicators and forty (40) Subindicators.
 The GPPB approved the use of the APCPI as the standard procurement monitoring and
assessment tool of the Philippine Government on 1 June 2012.
 On 2 to 3 October 2012, the Training on the Use of APCPI System for 2011 Procurement
Activities was organized and facilitated by the GPPB-TSO Performance Monitoring Division
(PMD) to serve as the initial roll-out program for the implementation of the APCPI. The PMD
invited at least two (2) participants, preferably from the Bids and Awards Committee (BAC)
or Secretariat (BAC Sec), from the twenty (20) line agencies. The participants assured
submission of the APCPI results on or before the 26 October 2012 deadline. To date, 13 of
the 20 agencies have already submitted the APCPI results to the PMD.
 NEXT STEPS:
o Launch of APCPI to all procuring entities via series of familiarization meetings
o
Training of COA Confirmators/Validators on the application of APCPI
3) Institutional Development Fund (IDF) Grant for “Strengthening the Capacity of Procurement
Institutions for Effective Implementation and Enforcement of the Procurement Law”. The IDF
Grant has three components: Component 1- Monitoring and Evaluation of Agency Performance;
Component 2- Review of the Effectiveness of the Public Procurement; and Component 3Capacity Development Program for Procurement Practitioners.
 Component 1 entails the upgrade and simplification of the OMES and the development of a
sustainability plan for its implementation. GPPB-TSO is currently negotiating with the
Highest Rated Bidder for the consultancy agreement on the upgrade and simplification of
the OMES.
 Component 2, on the other hand, refers to the revision and update of the Guide in the Audit
of Procurement (GAP), which will be implemented by the Commission on Audit (COA).
Communications with the COA, through Commissioner Heidi Mendoza, are underway for the
implementation of Component 2.
 Lastly, Component 3 includes the development of end of training course evaluation and
quality control standards and update of Training Modules on GPPB’s Professionalization
Program developed in 2009. The terms of reference for the consultancy services under
Component 3 of the Project is currently being developed. A Memorandum of Agreement has
already been drafted for the implementation of Sub Component 3.3 on completed
organizational activities of GPPPI. It will be executed once the comments of GPPPI have been
incorporated.
 NEXT STEPS:
o Implement the Procurement and Implementation Plan agreed between GPPB and the
WB.
4) Japan Social Development Fund (JSDF) Grant for “Improving the Quality and Responsiveness of
Public Spending in Poor Communities through Localized Procurement”
 Project Component A (Community Participation Procurement Manual) being implemented
by TAN has just finished with the conduct of training of trainers this October 2012.
 On the other hand, Project Component B (Local Government Procurement Manual and Civil
Society Organization Manual) is currently conducting roll out trainings to 12 municipalities.
To date, roll out trainings have been conducted in the Municipalities of Asipulo (CAR), Bani
(I), Manjuyod (VII), and Balangiga (VIII). Roll out trainings for the Municipalities of Sta. Maria
(XI) and Jabongga (XIII) will be conducted this 19-23 of November 2012.
 NEXT STEPS:
o Component A: Engagement of partner academic institutions and Roll out of actual
trainings on the CPPM by the academic institutions to the community groups of pilot
municipalities.
o Component B: January and February 2013 training of trainors for municipalities of
Tungawan (IX), Malitbog (X), Mulanay (IV-A), Sane Remigio and Ajuy (VI), and Amulung
(II).