1. “Support to Local Government Units for More Effective & Accountable Public Financial Management” DCI-ASIE/2010/022-691 PDF Working Group on Decentralization & Local Government June 25, 2012

2. Support to Local Government Units for More Effective & Accountable Public Financial Management Overall Objective: To contribute to the achievement of the MDGs and poverty reduction in the Philippines, in line with the 2011-2016 Philippine Development Plan (PDP), through improved public financial management resulting in improved delivery of basic services by local governments. Project Purpose: Enhanced capacity of local governments (LGUs) to generate revenue and to allocate and spend public funds more effectively and efficiently.

3. Support to Local Government Units for More Effective & Accountable Public Financial Management Project Results Enhanced capacity of national oversight agencies Strengthened accountability and transparency Strengthened local capacity in fiscal and expenditure management

4. Support to Local Government Units for More Effective & Accountable Public Financial Management Project Results & Components: AEnhanced capacity of national oversight agencies I Improved institutional capacities of the oversight bodies at central level II LGU PFM Policy agenda and action plan developed IIIStrengthened capacity of the regional offices

5. Support to Local Government Units for More Effective & Accountable Public Financial Management Project Results & Components: B Strengthened local capacity in fiscal and expenditure management IV Improved revenue generation and management at LGU level VImproved budget, planning and execution VI Strengthened internal control systems / internal audit services at LGU level VIILocalized procurement reforms

6. Support to Local Government Units for More Effective & Accountable Public Financial Management Project Results & Components: CStrengthened accountability and transparency VIII Strengthened budget monitoring and evaluation at LGU level IX Enhanced effectiveness of LGU performance monitoring systems X Financial management leadership developed at LGU level

7. Support to Local Government Units for More Effective & Accountable Public Financial Management Organizational Set-Up

8. Support to Local Government Units for More Effective & Accountable Public Financial Management Working Together DBMDILGNEDABLGFCOA Executing Authority active role in reforming the budget process, particularly in the integration of planning and budgeting; strengthening of LGU revenue generation; Identification of further reforms in the LGUs through their audit findings and recommendations ;

9. “Support to Local Government Units for More Effective & Accountable Public Financial Management” DCI-ASIE/2010/022-691 Inter-Agency Meeting December 8, 2011

10. Support to Local Government Units for More Effective & Accountable Public Financial Management Project Implementation Partially decentralized management All Contracts shall be concluded by the beneficiary, except for contracts relating to: Mobilization of technical assistance; Monitoring; External evaluation; and Audit Following EC procurement procedures and subject to ex ante and ex post controls: ex ante controls: procurement contracts > 50,000 Euros & all grant contracts ex post controls: procurement contracts < 50,000 Euros

11. Support to Local Government Units for More Effective & Accountable Public Financial Management Budget CategoriesEU contribution EURContracting authority / Paying authority 1. Services Technical assistance3 500 000European Commission Monitoring, evaluation and audit200 000European Commission 2. Supplies Equipment250 000DBM / European Commission Software Development300 000DBM / European Commission Publications250 000DBM / European Commission 3. Operating costs Events (training, mentoring, coordination) 3 000 000DBM / European Commission Office supplies250 000DBM / European Commission 4. IEC Project Information, Education and Communication materials and mass media campaigns 100 000DBM / European Commission Communication/Visibility50 000European Commission 5. Contingencies Contingencies100 000DBM / European Commission TOTAL8 000 000

12. Support to Local Government Units for More Effective & Accountable Public Financial Management Budget GOP CONTRIBUTION: Estimated at 700,000 Euros, in kind and will cover: Logistical costs for hosting TAT; All tax expenditures incurred by the project; All costs related to participation of officials in meetings, workshops and other events; All salaries related to the participation of their staff in the programme; Any program-related operating costs not included in the EU contribution;