Transcript The Challenges to Financial Reforms: The Department of
The Challenges to Financial Reforms:
The Department of Education Experience
MS. RHUNNA CATALAN
Chief Accountant
for Undersecretary Francisco M. Varela
Presentation Outline
I. The Department of Education (DepEd): A Large and Complex Bureaucracy II. Improving Financial Management III. Our Continuing Challenges IV. Moving Forward
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I. THE DEPARTMENT OF EDUCATION:
A Large and Complex Bureaucracy
The DepEd is responsible for management and governance of the Phil basic education system.
Societal Goal Inclusive Growth and Poverty Reduction Sector Outcomes Equitable Access to Adequate Quality Societal Services and Assets Sub-Sector Outcomes Knowledge, skills, attitude and values of Filipinos to lead productive lives enhanced Organizational Outcomes Access to Basic Education Improved Quality of Education Improved Filipino Artistic & Cultural Traditions Preserved & Promoted Major Final Output (MFOs)
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Public Kindergarten & Elementary Education Services
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Public Secondary Education Services
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Alternative Learning System Services
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Basic Education Sector Managemen t Services
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Regulatory and Devt. Services
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Govt. Assist. to Students & Teachers in Private Educ. Services
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Informal Education Services Cultural Outreach Services (PHSA) Children Television Devt. Services Book Industry Devt. Services * Subject for refinement recommendation is for the NBDB to be attached to the Department of Trade and Industry (DTI) since its mandate is to develop and promote the local publishing industry 4
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• • • •
Global and national initiatives guide the DepEd in the formulation of its goals, policies and strategies.
Education For All / Millennium Development Goals Philippine Development Plan Basic Education Sector Reform Agenda (BESRA): school-based management, improvement in teaching and learning quality, among others K to 12 Reform Program and the President’s 10-Point Basic Education Agenda o Universal Kindergarten Education (RA No. 10157) o Additional 2 years of secondary education to enable graduates to develop competencies that will make them better prepared for higher education, the world of work, entrepreneurship and global opportunities. 5
As mandated by the Phil Constitution, it receives the largest share (12-15%) of the National Budget.
2500,00 2000,00 1500,00 1000,00 15.6% 14% 13.8% 13.5% 13.2% 13.6% 12.4% 12.7% 12.2% 12.2% 12.3% 11.4% 12.6% 13.2% 14.6% 500,00 0,00 1999 2000 2001 2002 2003 2004 2005 National Budget (bns) 2006 2007 2008 2009 DepED Budget (bns) 2010 2011 2012 2013 6
It is the largest government bureaucracy with a decentralized management framework.
Central Office = 1 Regional Offices = 16 + 1 ARMM = 203** Schools Division Offices No. of Districts = 2,611 83% 17% 59% 41% Elementary Schools* Public * Private Secondary Schools* Public * Private *No. of schools based on EBEIS School Year 2011-2012 **Including16 newly-created divisions = 46,137 = 38,503 = 7,634 = 12,670 = 7,470 = 5,200 = 58,807 Schs.
Public: 45,973 (78%) Private:12,834 (22%) = 16.53M
= 14.91M = 1.62M
= 6.99M
= 5.58M = 1.41M
= 23.52M enrollees
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Private: 3.03M (13%)
The current processes in financial management in DepEd are rooted in Republic Act No.9155.
Region
•Develop a regional basic education plan.
•Formulate, in coordination with RDCs, budgets to support the regional education plan.
•Plan and manage the effect and efficient use of personnel, physical and fiscal resources of the regional office.
•Manage the database and management information system of the region.
Division
•Develop and implement division education development plans.
•Plan and maange the effective and efficient use of all personnel, physical and fiscal resources of the division.
•Monitor the utilization of funds provided by the national and local government to schools and learning centers.
School
•Prepare school improvement and annual improvement plans.
•Administer and manage all personnel, physical and fiscal resources of the school.
•Accept donations, gifts, bequests and grants for the purpose of upgrading teachers’ competencies, improving and expanding school facilities and providing instructional materials and equipment.
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II. FINANCIAL MANAGEMENT INITIATIVES OF THE DEPED
Challenges in Managing DepEd Resources
Lack of resources at the school level Weak internal controls Disjointed planning and budgeting Issues with absorptive capacity Lack of finance personnel Difficulty of collecting accurate data/repor ts Difficulty of monitoring fund sources/ releases Delays in payment of teacher salaries 10
1. Efforts to improve the direct release of funds to schools
• Legal Basis: o Section 10 of RA 9155 provides that the appropriations intended for regional and division offices are to be allocated directly and released immediately by DBM to the said offices.
o DBM-DepED Joint Circular No.2004-1on the direct release of funds to the DepEd Regional Offices and Implementing Units • Success of the School Based Management program under TEEP/SEDIP/BESRA.
• Prior to 2008, school MOOE were released either in cash or in kind. With the implementation of BESRA policies and reform thursts, full downloading of resources to schools was intensified.
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1. Efforts to improve the direct release of funds to non-implementing units (elementary schools)
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 63% 49% 76% 74% 83% 74% 2010 2011 Amount Downloaded Schools Covered 2012 Note: 2012 data is as of end of September while 2010 and 2011 data are as of end of December.
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2. Efforts to improve payroll management REGION
I - Ilocos Region II - Cagayan Valley III - Central Luzon IVA - CALABARZON IVB - MIMAROPA V - Bicol Region VI - Western Visayas VII - Central Visayas VIII - Eastern Visayas IX - Zamboanga Peninsula X - Northern Mindanao XI - Davao Region XII - SOCSKSARGEN Cordillera Administrative Reg CARAGA Region National Capital Region
TOTAL # OF EMPLOYEES *
32,046 21,042
As of June, 2012 ATM-Paid
19,115 13,479 52,055 53,006 17,484 38,377 38,567 39,048 30,985 50,388 28,631 17,484 38,002 38,567 38,981 29,393
% ATM/TOTAL
59.65% 64.06% 96.80% 54.01% 100.00% 99.02% 100.00% 99.83% 94.86% 26,637 24,630 20,418 21,687 11,856 13,214 50,424 7,883 24,630 20,418 21,687 10,376 13,214 50,424 29.59% 100.00% 100.00% 100.00% 87.52% 100.00% 100.00%
TOTAL
* Excludes Central Office and ARMM
491,476 422,672 86.00%
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2. Efforts to improve payroll management
• 1993 : GAA called for the decentralization of the DepEd payroll system to: o o o (1) shorten payroll processing, (2) minimize, if not eliminate, payroll processing errors highlighted by COA audit observations, and (3) make it easier for teachers to follow up issues with regard to their payroll.
• 1995 : DepEd memorandum establishing the Regional Payroll Services Unit; all regions had an RPSU by June 2006 • 2002 : Decentralization of elementary school teachers’ payroll to the regional offices. As of June 2006, roll-out of elementary payroll system from Central Office to regions was completed.
• 2001 : Introduced the use of Automated Payroll Machine System. This was made compulsory with the issuance of DepEd Order No.8, 2009. 7 out of 16 regions are fully implementing the ATM payroll system.
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VI VII VIII IX X XI XII I II III IV A IV B V XIII CAR NCR
3. Increasing the quantity and quality of financial management personnel REGION DIVISIONS WITH AC SEC. SCHOOLS/Iu s
9 9 9 7 15
187
14 8 17 15 7 13 17 15 10 9 13 119 94 232 243 75 124 394 110 84 66 60 98 65 117 42 156
2079 TOTAL WITH AGENCY CODES BOOKKEEPER
133 102 249 258 82 137 411 125 94 75 73 107 74 126 49 171
2266
88 74 217 227 66 119 108 102 58 58 37 70 61 27 42 132
1486
88 74 217 227 66 119 108 102 58 58 37 70 61 27 42 132
1486 DISB. OFFICER TEACHERS DESIGNATED AS FIN'L STAFF
62 40 30 32 18 10 572 16 52 16 46 56 8 180 0 48
1186 TOTAL FINANCIAL STAFF
238 188 464 486 150 248 788 220 168 132 120 196 130 234 84 312
4158
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4. Efforts to improve recording and booking of transactions
2006 2009.
: The DepEd Central Office, Region VII RO and Region XI RO started using the eNGAS system. Meanwhile, Region IV-A outsourced the development of its financial management system in • 2006 : Proper recording and booking of school buildings implemented by DPWH and other donated properties was observed through training of property and finance staff and strict compliance to various DepEd orders. As of 2011, about PhP 4.07 billion worth of school buildings were included in the books of DepEd.
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5. Efforts to strengthen internal control and efficiency of operations
2008 : The DepEd established its Internal Audit Service Unit as part of the BESRA reform package. Since its creation, it has conducted audit reports for key offices and major programs such as the Baguio Teachers Camp, GASTPE, and SBM.
• Early issuance of program guidelines resulted to the early/timely payment of fees (ex. GASTPE grants) and release of funds (ex. Subsidies to Regional Science HS). Starting 2011, various programs and projects adopted the use of multi-year guidelines lending predictability in budgeting and planning.
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5. Efforts to strengthen internal control and efficiency of operations
With the deployment and training of finance personnel and more intensive monitoring, the Department was able to improve liquidation of its cash advances. 83,50%
DepEd Liquidated Cash Advance at Year-End
83,18% 83,00% 82,95% 82,50% 82,00% 81,83% 81,50% 81,00% 2009 2010 Lquidated Cash Advance 2011 18
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5. Efforts to strengthen internal control and efficiency of operations
DepEd is also working towards rolling out its various information systems – enhanced BEIS, Asset Management System, and HR Information System. • The DepEd recently completed the development of the strategic design for its Financial Management Information System. It is working closely with the PFM Committee to integrate key features of the DepEd FMIS in the GIFMIS. On the interim, the DepEd is using its in-house developed budget monitoring and disbursement systems to cope with the monthly reporting requirements of oversight agencies.
• Planning and budgeting processes are being harmonized at the Central, Regional and Division levels. Triangulation activities are also undertaken to ensure alignment between planning of activities, budget availability and scheduling of procurement.
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III. OUR CONTINUING CHALLENGES
Systemic challenges need longer-term and broader solutions.
• Structural rigidity: reforms do not immediately transform o Organizational capacity needs to be enhanced (in terms of quantity and quality) o o Culture of centralized control still persists. Innovation needs to be encouraged and nurtured.
DepEd systems remain fragmented, paper-based and labor intensive.
• Reforms need external support and cooperation: o o o o Report requirements could be rationalized to ease burden on field personnel.
Need buy-in of government partners in pushing for equity-based financing and the adoption of the DepEd Medium-Term Expenditure Plan. (MTEP) Need to track funding from sources apart from the GAA such as LGU’s Special Education Fund and private donations.
Implementation of the DepEd FMIS hinges on GIFMIS roll-out.
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IV. MOVING FORWARD
Addressing Structural Rigidity
•Establishment of Regional Account Management Teams •Deployment of additional finance personnel and clustering of non-IUs •Roll-out of interim systems such as the Budget Monitoring System and Disbursement Monitoring System •Capacity-building to build managerial talent on the ground •Institutionalization of bottom up budgeting and planning.
Working with Partners to Institutionalize Reforms
•On-going dialogue with DBM and COA counterparts to clarify and rationalize report requirements.
•Inter-agency TWG was established to refine and finalize DepEd MTEP.
•Joint Circular on the use of the Special Education Fund and development of an SEF manual is being pursued.
•Need to strengthen monitoring of public-private partnerships •Close coordination with PFM Committee re GIFMIS dev’t 23