1. Translating Commitments Into Action Through Strategic Partnerships PFM REFORM ROADMAP: A STATUS REPORT 36th Annual National Convention “GACPA: Sustaining Public Trust through Accountability, Credibility and Transparency" May 21 to 24, 2014

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

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

7. 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)

8. 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

9. Public Financial Management Results Framework Improved Service Delivery | Transparency | Fiscal Discipline | Allocation Efficiency | Operational Efficiency Systems & Process People & Organisations Policy Reform Outputs Reform Objectives 9  Accounting & Auditing Standards  Unified Accounts Code Structure  Performance Informed Budgeting  Contingent Liability Framework  Treasury Single Account  GIFMIS  Treasury Reporting and Monitoring System (TRAMS)  Comprehensive Human Resource Information System  PFM Competency Framework  Capacity Building  Change Management

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

11. Strategic Partnerships PFM Oversight Agencies Implementing Agencies Partner Agencies Legislative Development Partners Civil Society

12. 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  UACS Phase III  UACS Administration (Management and Maintenance)  UACS Help Desk  UACS Training and Education

13. Harmonized Financial Accountability Reporting Requirements of Oversight Agencies  Budget and 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

14. 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  Enhancing the quality and uniformity of auditing practice throughout the Philippines and strengthening public confidence in the auditing and assurance profession  Ensure transparent and comparable financial statements

15. Improved Treasury Cash Management Operations  Treasury Single Account  Administered by the Bureau of the Treasury  Maintained at the Bangko Sentral ng Pilipinas  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

16. Improved Treasury Cash Management Operations  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  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)

17. Performance Informed Budgeting 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  Information for legislators to hold Government to account for how they spend citizens’ money  Enabling the citizens (either directly or through civil society and the media) to see how government spends their money and hold them to account

18. GIFMIS Development  Government Integrated Financial Management Information System is an integrated IT solution that can collect and organize financial information in a central database  Procurement Ongoing  GIFMIS Conceptual Design adopted in 2012  GIFMIS Terms of Reference, Bidding Documents finalized in August 2013  Procurement started in August 16, 2013  Expected date of contract signing in July 2014  Goal: Harmonize and improve PFM business processes/ rules to facilitate analysis and decision making, and increase efficiency

19. Comprehensive Human Resource Information System  Procurement of CHRIS Solutions Provider in progress  Shortlisted 7 eligible bidders  Contract awarding – May 2014  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

20. Current Systems Improvement (in preparation for GIFMIS)  Online Submission of Budget Proposal (OSBP)  2014 Budget submitted online  Enhanced OSBP for 2015 Budget Submission  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)  Implemented November 2013  Upgrading of eNGAs & eBudget  To incorporate PFM reforms such as PPSAS, RCA and UACS  Roll out June-December 2014

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

22. 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, Planning and Budget Officers of SUCs, and DBM technical staff from central and regional offices  Training on UACS and Budget Execution  Trained Bureau of Treasury, DBM and COA  Spending agencies starting in June

23. Awareness Raising  Communications  PFM Brand Book Completed  IEC Materials: Ongoing distribution of UACS, GIFMIS, TSA, CHRIS, LM, CB, PIB, AAR Project Briefs and FAQ flyers  Development of PFM posters – PFM Reform Roadmap, UACS and GIFMIS  Released seven (7) PFM Newsflash Articles to NGAs through DBM-TIS and DevComnet  PFM Annual Report  Production of AVPs  Completed: PFM Reform Roadmap and Champions, PFM Teasers and TSA  Ongoing: UACS

24. Development of PFM Competency Framework  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  PFM Competency Framework is a holistic government approach to capacity development among oversight and spending agencies.  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

25. Awareness Raising  Social Media Initiatives  Overhauled existing PFM website as an information portal.  From January 2014 to date, we have about 6,000 engaged website users and 23,000 page views  Phase 2 of the website development is the PFM Intranet portal which serves as an online repository of documents for PFM staff and select NGAs  Social Media Accounts—Facebook, Twitter, You Tube-- are also up and running to engage a broader audience

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

27. Thank You