Transcript File - Accounting Division

Updates on DBM
Regulations
(A Presentation for the 26th DepEd National
Seminar/Workshop on the Preparation and
Reconciliation of the CY 2011 Year-End Financial
Reports)
By: Assistant Secretary Luz M. Cantor
January 30, 2012
Grand Astoria Hotel, Zamboanga City
Outline of Presentation
A. DepEd FY 2012 Budget per RA 10155
B. Budgetary Reforms
1. Budget Preparation
2. Budget Authorization & Approval
3. Budget Execution
4. Budget Accountability
C. Reiteration of Existing Policies
1. Flexibilities allowed under CY 2012 GAA
2. Emphasizing the “No-Report, No-Release” policy
3. Important Timelines
D. Way Forward
1. Government Integrated Financial Management
Information System (GIFMIS)
A. DepEd FY 2012
Budget per RA 10155
A. DepEd FY 2012 Budget
(FY 2012 GAA, RA 10155)
a.
Budget Level
P216,353,685*
(in thousand pesos)
* includes attached agencies, RLIP and SBP
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A. DepEd FY 2012 Budget
(FY 2012 GAA, RA 10155)
a.
Budget Level (in thousand pesos)
PARTICULARS
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OFFICE OF THE SECRETARY
PHIL. HIGH SCHOOL FOR THE ARTS
NATL. COUNCIL FOR CHILDREN'S
TELEVISION
NATL. BOOK DEVT. BOARD
NATIONAL MUSEUM
SUB-TOTAL APPROPRIATION
SCHOOLBUILDING PROGRAM (SBP)
TOTAL
FY 2011
GAA
FY 2012
GAA
% Increase
206,037,470 216,020,794
56,435
59,537
6,343
6,605
4.9%
5.5%
4.1%
21,867
22,083
148,903
244,666
206,271,018 216,353,685
1,000,000
1,000,000
207,271,018 217,353,685
1.0%
64.3%
4.9%
0.0%
4.9%
B. Budgetary Reforms
I.
BUDGET PREPARATION
Objectives of 2013 Budget Preparation

Deepening of On-going PEM Reforms
 Fiscal consolidation
 Budgeting for 5 KRAs
 Continuance of 3 Pillar Reforms: MTEF, OPIF, ZBB
 Disaggregation of remaining lump sum funds

Expanding Participatory Budgeting
 Greater CSO participation
 Reviving RDC involvement
 Introduction of Bottom-up Budgeting
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I.
BUDGET PREPARATION
Public Expenditure Management Reform
Goal: Establish Performance-Based Budgeting
Aggregate Fiscal Discipline * Allocative Efficiency * Operational
Efficiency
MTEF
MediumTerm
Expenditure
Framework
OPIF
Organizational
Performance
Indicator
Framework
ZBB
Zero-Based
Budgeting
Approach
I.
BUDGET PREPARATION
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 expenditure
Prioritization
Develop standards for OPIF throughout
government by applying common methodology
to the exercise
I. BUDGET PREPARATION
Continue to Focus on the Social
Contract (E.O. No. 43)
Transparency, accountability and open
governance;
2. Poverty reduction and empowerment of
the poor and vulnerable;
3. Rapid, inclusive and sustained economic
growth;
4. Just and lasting peace and the rule of law;
and
5. Integrity of the environment and climate
change adaptation and mitigation
1.
I.
BUDGET PREPARATION
Fleshing out of Lump Sum Funds
Target: All remaining lump-sum funds in
departments are
fleshed out in the FY 2013 budget
Rationale: Improve transparency & regional
distribution
Facilitates early implementation
Strategy: Participative budgeting with
- Poor municpalities
- CSOs
- RDCs
I.
BUDGET PREPARATION
Participation of CSOs and Other
Stakeholders for M & E
•
FY 2012 Budget Preparation (6 Depts. and 3
GOCCs)
•
•
•
•
Social Sector (DepEd, DOH, DWSD)
Economic/Infra (DA, DAR, DPWH)
GOCC (NFA, NHA and NHMFC)
FY 2013 Budget Preparation (6 more
Departments)
•
•
•
•
Social (DOLE)
Economic (DOTC, DOT, DENR)
Gen. Public Service (DOJ, DILG)
GOCCs (NEA, NIA, LRTA)
I.
BUDGET PREPARATION
Bottom-Up Budgeting to Consider Needs
of Target Poor Communities
 609 target poor municipalities chosen by HDPR
Cluster
 Pilot the bottom up approach in budgeting in 300
municipalities with HDPR & NAPC
 Foster convergence between the needs of 300 poor
municipalities, funds available from LGUs and the programs to
be delivered by NGAs
 Assist departments to flesh out lump sum funds
 Strengthen CSO participation in participative budgeting
 Agencies to be included in the pilot are DA, DAR, DENR,
DSWD, DOH, DEPED,
PHIC
 Role of local planning committees as venue for LGU-NGA
coordination
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 HDPR and Good Governance Clusters to resolve issues
I.
BUDGET PREPARATION
Bottom-up Budgeting

January to March: Target municipalities to develop &
finish LGU plans, inputting poverty and gap studies &
discussion with barangays, CSOs & reps from
marginalized groups.
◦
◦
January- ACOs to issue participation guidelines to AROs
- DILG & DBM to brief target municipal core teams & AROs
- NAPC & DSWD to work with CSOs, municipal focal
persons to organize grassroot groups to engage with
LGU & NGAs
March- W/ DILG & DBM, Municipal Development Councils to
engage w NGAs
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I.
BUDGET PREPARATION
Bottom-up Budgeting



April to May: AROs with HDPR to work for
incorporation of projects requested by target
municipalities in NGA budget for 2013. ARO can meet
with other AROs to ensure convergence of service
delivery.
May to July: HDRP to track decisions on projects. LDCs
and grassroots orgs to ensure convergence of agreed
projects with LGU AIPs
HDPR to establish tracking, alliance building & capacity
building to keep target municipalities engaged in budget
legislation & execution.
II. BUDGET AUTHORIZATION
AND APPROVAL
Timely approval of the
budget
III. BUDGET EXECUTION
DBM Issuances
 NBC No. 534 dated Dec. 8, 2011
Agency Preparation and Submission of Budget Execution
Documents (BEDs) – CY 2012 Plans/Targets
 NBC No. 535 dated Dec. 29, 2011
Guidelines on the Release of Funds for CY 2012
 CL No. 2011-15 dated Dec. 26, 2011
Validity of Notice of Cash Allocation
III. BUDGET EXECUTION
Submission of CY 2012 Agency Plans/Targets
NBC No. 534
calls for the early submission by
agencies/operating units (OUs) of the CY 2012 BEDs (with
modified formats) containing their plans/targets, to wit:
* Financial Plan
* Monthly Cash Program
* Program of Monthly Income
* Physical Plan
* List of Not Yet Due and
Demandable Obligations
FY 2011
Basis
Deadline
FY 2012
CY 2011 GAA level
February 15, 2011
CY 2012 NEP level
--
December 22, 2011
-- January 16, 2012 (ext.)
III. BUDGET EXECUTION
CY 2012 Fund Release System per NBC
Budget Execution
• submission of BEDs by the
agencies.
• issuance
of
spending
authorities (for obligation and
disbursement) by DBM to
agencies.
• implementation of programs
and projects by the agencies,
out of the authorities issued
by DBM
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Budget Accountability
•
submission of budget
accountability
reports
(BARs) by the agencies.
•
review
of
agency
performance by DBM.
III. BUDGET EXECUTION
Comparative Procedures in the Release of Funds
FY 2012
FY 2011
1. Approval & Effectivity of the GAA
Approval - December 27, 2010
Effectivity - January 1, 2011
Approval - December 15, 2011
Effectivity - January 1, 2012
2. Appropriation Cover
R.A. 10147
Jan. 1 to Dec. 31, 2011
operations
R.A. 10155
Jan. 1 to Dec. 31, 2012
operations
3. Validity of Appropriation
Available for release and obligation
up to December 31, 2012, with the
exception of PS.
Available
for
release
and
obligation up to December 31,
2013, with the exception of PS.
III. BUDGET EXECUTION
How is the Agency Specific Budget Disaggregated?
- thru the Agency Budget Matrix (ABM)
FY 2011
FY 2012
Authorized Appropriation =
Authorized Appropriation =
 Not Needing Clearance (NNC)
 Not Needing Clearance (NNC)
This Release
PS
MOOE
CO
=
This Release
PS
MOOE
CO
100%
 Needing Clearance (NC)
same
= 100%
 Needing Clearance (NC)
III. BUDGET EXECUTION
ABM (continuation)
FY 2012
FY 2011

Approval of ABM - Jan. 31, 2011

Approval of ABM - Jan. 2, 2012

Pending approval of ABM,
agencies WERE AUTHORIZED to
incur overdraft in obligations for
regular operating requirements.

With the early approval of ABM,
agencies ARE NOT authorized to
incur overdraft in obligations for
regular operating requirements.

Overdrafts in obligations were
adjusted/charged against the
comprehensive
allotment
released thru the ABM.

Actual obligations shall be charged
against
the
comprehensive
allotment thru the ABM.

Comprehensive
release
of
allotment
by allotment class,
broken down by
sub-object of
expenditure.

Comprehensive release of
allotment by allotment class.
III. BUDGET EXECUTION
Comprehensive Release of Allotment
-
NNC of ABM
Personal Services (PS)
FY 2011
FY 2012
 Filled Positions of NGAs
 Filled Positions of NGAs
 ------------------- XX
 Lump-sum for PS under DepEd
 Equivalent Records Forms
 Conversion
to
Master
Teacher Positions
 Reclassification of Positions
 Hardship Pay
III. BUDGET EXECUTION
Comprehensive Release of Allotment
-
NNC of ABM
MOOE and Capital Outlay
FY 2011
FY 2012
 Quick Response Funds
(DSWD, DND, DOH, DA, DepEd,
DPWH)
------------------------- X
 Lump-sum
for
Repair
and
Maintenance of Schools Buildings
of DepEd
 CMIs of agencies (with list of implementing units)
III. BUDGET EXECUTION
Budget Items Comprehensively Released, but subject to Conditional
Obligation
 For DepEd:
Lump-sums for PS / Lump-sum for Repair and Maintenance of School Buildings
 Procurement of motor vehicles and motorized equipment
 Provisions for Supplies and Materials and Office Equipment
Subject to submission to DBM, of the CY 2012 Annual Procurement Plan for
Common-Use Supplies and Equipment pursuant to CL 2011-6/6-A.
 Lump-sum appropriations or Centrally-managed Items
Subject to identification of specific projects and other requirements per Special
Provision of their respective budgets, list of IUs and allocation per IU.
 Research and Development
Consistent with the Master Plan of the DOST and DA.
 Others:
Computers and IT equipment; Communication equip; firearms; books procured other
than TNL exceeding 5 copies; on-going FAPs; and grants, subsidies, contributionssubject to clearances from agencies concerned & certain conditionalities.
III. BUDGET EXECUTION
NC portion of ABM – for Issuance of SARO
FY 2011
FY 2012
 Lump-sum appropriations or CMIs  Lump-sum appropriations or CMIs
(w/o details as of ABM preparation)
 Unfilled positions
 ----------------- X
 Other budgetary provisions:
 Other budgetary provisions:
 Additional amounts for existing
programs and projects

--------------------X
 New items in the budget

New items in the budget
 Items
/
provision
for
Conditional Implementation
 Items/provisions
for
Conditional Implementation
III. BUDGET EXECUTION
Disbursements – Issuance of NCAs
FY 2011
FY 2012
 NCAs for 1st semester regular
operating requirements (JanJune)
comprehensively
released based on:
tentative MCP prepared by
DBM.
 NCAs for 1st semester regular
operating requirements
(JanJune)
comprehensively
released based on:
MCP submitted by the agency
 Tentative MCP is updated
based on the submitted agency
MCP as well as SARO
releases made.
 Succeeding NCAs for 3rd and 4th
quarter requirements, shall be
contingent on the submission of
BEDs and Budget Accountability
Reports by the agency/OU.
 Succeeding
comprehensive
NCAs were issued based on
the updated MCP.
III. BUDGET EXECUTION
Validity of NCAs
FY 2011
 Regular MDS Account
 1st to 3rd Quarter
NCA programmed for a
specific month is valid until
the last working day of the
said month.
 4th Quarter
NCA credited for the
month shall be valid until
the last working day of the
quarter.
FY 2012
 Regular MDS Account
 Effective Jan, 2012
per CL No. 2011-15
NCA programmed and
credited for a specific
month is valid until the last
working day of the said
month.
III. BUDGET EXECUTION
Flexibilities Allowed per CY 2012 GAA
 Use of Savings under Agency Specific Budget
 Augmentation of any item under PS and MOOE, except CIF
 Priority payment of PS deficiency.
 Use of Fees and Excess Income
 Fees collected from seminars, trainings and conferences;
 Proceeds from sale of publications for cost of printing/dissemination;
 Proceeds from sale of non-serviceable, obsolete & unnecessary
equipment;
 Service fees collected from BIR, GSIS, HDMF, PHIC and mutual benefits
associations/cooperatives for the operation of a Provident Fund;

Excess Income realized and deposited with the BTR .
IV. BUDGET ACCOUNTABILITY
Transparency - Disclosure in the Website
 GP No. 89 - Depts/agencies implementing infrastructure projects
shall post in their websites, certain data/information prior to start of
bidding for the project/s, such as:
 Project title, detailed description for each project (nature & location)
 Cost breakdown for materials, labor and overhead expenses
 GP No. 93 – Agencies shall maintain a transparency seal to be posted
in their websites which shall contain the following:

Agency’s mandate, functions, its officials w/ position/designation & contact information
 Annual reports for the last three years
 Respective approved budgets and corresponding targets

Major programs and projects categorized in accordance with the 5 Key Results Areas
 Evaluation and/or assessment reports

Annual procurement plan, contracts awarded and the name of contractors/suppliers
IV. BUDGET ACCOUNTABILITY
What is the state of agency compliance to BEDs & BARs ?
IV. BUDGET ACCOUNTABILITY
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.
IV. BUDGET ACCOUNTABILITY
IV. BUDGET ACCOUNTABILITY
Review of Agency Performance
What ?
Why ?
How?
When ?
IV. BUDGET ACCOUNTABILITY
Performance review shall :
 be based on the following documents/reports
agencies:
- BEDs for plans/targets;
- BARs for accomplishments;
- Monthly flash reports (consolidated by dept.)
of
 cover financial utilization, physical accomplishments and
revenue generation;
 serve as guide of DBM in deciding whether reallocation
of fund or additional release is necessary and basis in
reporting the status of the budget to the President, on a
monthly basis.
IV. BUDGET ACCOUNTABILITY
Performance review will determine:
 Budget Execution and Accountability
HOW much and WHAT cost the govt. provides for goods and services
to the public?
WHAT is the level of department/agency performance, in terms of
physical outputs and financial accomplishment ?
In case performance is below target
WHY are the targets/plans not attained and what factors and
events influence the level of performance?
HOW to catch-up and What necessary/improvements shall be
undertaken to catch-up with or even surpass the dept./agency plan?
 Budget Preparation
How much is the appropriate level of agency budget, based on actual
performance?
IV. BUDGET ACCOUNTABILITY
Important Dates to Remember
 Submission of BEDs
December 22, 2011 / January 16, 2012 (extension)
 Submission of BARs
On the dates prescribed under NBC 507/507A;
Consolidated Flash Reports (Financial and Physical Reports)
Every 10th day of the month

Submission of request for realignment of released allotment under the
FY 2011 budget
June 30, 2012
 Submission of requests that will require issuance of SARO and NCA in
FY 2012
November 15, 2012
C. Way Forward
I.
Government Integrated Financial Management
Information System (GIFMIS)
PFM Reforms Roadmaps
GIFMIS Committee Resolution 01-2011
Signed by the PFM/GIFMIS Committee on
January 19, 2011.

Approved by the PFM/GIFMIS Principals
by February 9, 2011.

Presented the PFM Reforms Roadmap to
the President during the Philippine
Development Forum (PDF) Meeting on
February 26, 2011.

I.
Government Integrated Financial Management
Information System (GIFMIS)
Executive Order No. 55
Directing the Integration and Automation
of Government Financial Management
Systems

Signed by the President on
September 6, 2011
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I.
Government Integrated Financial Management
Information System (GIFMIS)
Executive Order No. 55
Salient Provisions:
 Installation of PFM systems within the term
of the President (2011-2016), including:
GIFMIS
o Treasury Single Account (TSA)
o Efficient budget release system
o Regular in-year budget execution
reporting system
o Timely year-end audit reporting
o Systematic recording and reporting of
liabilities of government
o
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I.
Government Integrated Financial Management
Information System (GIFMIS)
GIFMIS TRACK 1
Objective and Time Frame

To meet the government’s immediate
need for a functioning GIFMIS with
minimum changes in or slightest
reengineering of PFM business
processes and reassignment of roles and
responsibilities over financial
transactions.

To be completed in 8 months from PMO
establishment.
I.
Government Integrated Financial Management
Information System (GIFMIS)
GIFMIS TRACK 2
Objective and Time Frame


To support fundamental reforms of PFM
business processes, reassignments of
roles and responsibilities over financial
transaction processing, oversight and
reporting, and corresponding
organization structural changes.
To be done in 5 years.
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On Reforms…,
“Only accountants
can save the world! -- through peace,
goodwill and
reconciliation”
Department of Budget and Management
3rd Flr., Boncodin Hall, General Solano St.
San Miguel, Manila 1005
Philippines
www.dbm.gov.ph
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