Program Overview and Updates April 2013. Session Scope Current PFM Situation Why the reform? PFM...
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Transcript of Program Overview and Updates April 2013. Session Scope Current PFM Situation Why the reform? PFM...
Program Overview and UpdatesApril 2013
Session Scope
• Current PFM SituationWhy the reform?
• PFM Reform Roadmap and Executive Order 55
What do we want to achieve?
• Project accomplishments and Updates
How do we achieve it?
Why the reform?
15.915.515.114.814.414.013.4
17.917.517.116.817.016.016.917.817.417.016.616.816.917.1
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-5.0
0.0
5.0
10.0
15.0
20.0
2010Actual
2011Actual
2012Revised
2013 2014 2015 2016
Perc
enta
ge o
f GD
P
Revenues Disbursements Oblig. Program Balance
A system of rules, procedures and practices for government to manage public finances in the areas of
budgeting accounting auditing cash management management of
public debt revenue generation public reporting on
financial operations
budget not results-basedlack of funding predictability
weak budget oversight by Congress and the public
weak cash management system
no common budgetary and accounting classification
weak monitoring of contingent liabilities
lack of budget credibility
PREPARATION
EXECUTION
ACCOUNTABILITY
PFM Cycle and Gaps
AUTHORIZATION
What do we want to achieve?
PFM Policy Bases Master plan for modernizing the
financial management system of the government
Executive Order 55 (s. 2011) directs the integration and automation of PFM systems
Improve efficiency, accountability and transparency of public fund use
Contribute to good governance and fiscal discipline as a strategy for inclusive growth and poverty reduction
Reform Objective
Clarify, simplify, improve and harmonize financial management processes and
information systems in the whole of government and as necessary reengineer and integrate
relevant systems in COA, DBM, DOF and implementing agencies
Desired Outputs
A Government Integrated Financial Management Information System (GIFMIS) and a Treasury Single Account (TSA) by 2016 Real-time on-line monitoring and control of obligations and direct links to
cash disbursements Consolidated financial management reporting requirements using
harmonized classification of budgetary, treasury & general ledger accounts A single treasury account for more effective cash management,
reconciliation of bank balances and to remove revenue/expenditure floats A predictable and streamlined allotment and cash release program Regular in-year reports on budget execution, and timely year-end audit
reports Systematic recording and reporting of all liabilities including guaranteed and
contingent liabilities
How do we achieve the reform?
PFM Projects
GIFMIS
Budget Reporting & Performance
Standards
Accounting and Auditing
Capacity Building
Liability Management
Treasury Cash Management
Operations Improvement
Generate real-time, reliable, accurate financial info and reports for policy decision making
Harmonize and consolidate data structures and apply consistent set of budget and accounting rules for reporting
Enhance government accounting & auditing systems & standards & strengthen external and participatory audit capacity
Professionalize the PFM workforce and build stakeholder (Congress and civil society) support for reforms
Improve management of government’s contingent liabilities and financial exposure
Improve cash management for operational efficiency
What have we done so far?
Unified Accounts Code Structure (UACS)
New Revised Chart of Accounts
Online Submission of Budget Proposal System
Treasury Single Account Conceptual Design
2012 Key Milestones
GIFMIS Conceptual Design
Messy Traffic of Financial Reporting Activities
15
This is now… In the long run, the Philippine PFM needs this kind of information system
Unified
Accounts
Code
StructureProvides a harmonized budgetary and accounting classifications and codes for• identifying• aggregating• budgeting • accounting• auditing• reporting of financial
transactions of government
UACS enables comparison of • allotment releases vs. appropriations,• obligations vs. releases, and • actual disbursements vs. obligations for
programs of spending agencies
2012 Key Milestones
Online Submission Of Budget Proposal System
(OSBPS)2012 Key
Milestones
Treasury Single Account (TSA) Conceptual Design
Assessed Gaps• Agency budgets are under
executed • Proliferation of bank accounts• Idle cash balances often fail to
earn income• Unnecessary borrowing costs to
cover perceived cash shortage• Idle cash balances in the public
banks used to extend credit to the public sector, or to buy bonds
2012 Key Milestones
Actions Taken • Inventory of agency bank
accounts • Conceptual design to implement
a TSA to provide a unified structure
of govt bank accounts enable consolidation and
optimum utilization of government cash resources
centralize revenue collections and payments process at the Treasury
GIFMISGIFMIS is an integrated web-based financial management information application:
Automate financial functions and operations – financial planning and budgeting, treasury and accounting
Collect and organize financial information in a central database
Generate real-time, reliable and accurate financial info and reports for policy decision making
Harmonized Financial Accountability Reports (Joint Circular 2013-1)
Exposure of the Phil Public Sector Accounting and Auditing Standards and ManualsInventory of Agency Bank Accounts for TSA readinessDatabase for GOCC Debt
Ongoing Initiatives
Internal Audit and Internal Control Training
IEC activities and PFM Competency Model Initiative
Rollout of UACS, Revised CoA and OSBPSGIFMIS Functional and Technical Requirements Gathering
Ongoing Initiatives
Is government ready for change?
GIFMIS will improve transparency and accountability in their agencies
High need of both the managers and technical groups for proper training to adapt to the new systems
PFM Capacity Building
PFM Competency Framework
Awareness Briefings and Consultations and Business Process Reviews with Stakeholders
INPUT
LEARNING AND DEVELOPMENT PROCESSES
Global Better Practices
Reengineered Business Processes
GIFMIS Systems
Functional Users Training• Reengineered Business
Processes • GIFMIS Systems
IT Technical Users Training • Reengineered Business
Processes • GIFMIS System
Professional Development Courses• Productivity Tools, Financial Analysis, Ethics and
Accountability,
PFM Competency Based Education & Training leading to certification, diploma or master’s degree in PFM
Informed and educated PFM executives, managers, employees, public, CSO stakeholders, etc.
Professional, competent PFM workforce in budgeting accounting, internal audit, treasury management, revenue management, govt IT audit, etc.
Transparent and accountable PFM systems, etc.
DESIRED OUTPUT/OUTCOME
Monitoring and Evaluation PFM 2012
Critical Path to GIFMIS
Political Leadership
• Executive Order 55
Institutional Structures and Plans
• PFM Roadmap• PFM Governance• Program Management Office
Change Management• Capacity Building• Communication
Policy Decisions• GIFMIS concept • Business process changes• Functional assignments
Development• Functional Design• System design• Procurement
Business Changes• Harmonized accounts• Treasury Single Account• Centralized payments
Management/Organizational Policies, Processes, Systems
People/Resources Finances/Budget
GIFMIS
“To ensure both the adequacy of public resources and the results per peso spent, we need a stable and enabling PFM system… comprehensive enough to cover the moment when
taxes are collected to the point where suppliers of government are paid, and up to that point when the auditor takes stock of
how these funds were used. This PFM system shouldn’t be purely financial, for it has to take into account the actual,
concrete results on the ground brought about by the use of public resources.”
“There’s more to PFM than merely installing a new ICT system or shutting down bank accounts… through PFM we ultimately
want greater accountability to be embedded in how we in government use the people’s hard-earned taxes.”
-- DBM Secretary Florencio B. AbadPFM Roadmap Briefing 8 March 2012
Thank you!www.pfm.gov.ph
Revised Chart of Accounts
COA Circular 2013-002, 30 Jan 2013• Revised the NGAS chart of accounts to provide new
accounts for adoption of the Philippine Public Sector Accounting Standards (PPSAS)
• Major component of the Unified Accounts Code Structure (UACS) to ensure comparability of financial information from budgeting and accounting systems
• Government-wide training on the revised CoA and exposure of the new PPSAS expected to begin in May 2013
2012 Key Milestones
Fiscal Simulation
Budget Preparation
Budget Management Budget Execution
Commitment Management
Payments Management
Receipts Management
Cash Management
Accounting & Fiscal Reporting
Asset Management
Procurement(PhilGEPS)
Debt Mgmt(DMFAS)
Human Resources Management
Payroll(NPS)
Plantilla(GMIS)
Revenue Management
Customs (BOC)
Internal Revenue (BIR)
Auditing Mgmt (IRRBAS)
Securities Management
GIFMIS
DataWarehousing
Business Intelligence
Government EIS(GEIS)
Central Bank &
Government Servicing
Banks(TSA)
Commercial Banks
CreditorVendor/Supplier
Public Employee
Portal
User
UACS
UACS
UACS
UACS
UACS
UACS
UACS
UACS
UACS
UACS
UACS
GIFMIS Conceptual Design (The “To Be”)
Blueprint for the GIFMIS system
Business Process to be supported
(SCOPE)
Public Sector Units to be
covered (COVERAGE)
Nature and extent of support
(FUNCTIONALITY)
2012 Key Milestones
Fiscal Simulation
Budget Preparation
Budget Management Budget Execution
Commitment Management
Payments Management
Receipts Management
Cash Management
Accounting & Fiscal Reporting
Asset Management
Procurement(PhilGEPS)
Debt Mgmt(DMFAS)
Human Resources Management
Payroll(NPS)
Plantilla(GMIS)
Revenue Management
Customs (BOC)
Internal Revenue (BIR)
Auditing Mgmt (IRRBAS)
Securities Management
GIFMIS
DataWarehousing
Business Intelligence
Government EIS(GEIS)
Central Bank &
Government Servicing
Banks(TSA)
Commercial Banks
CreditorVendor/Supplier
Public Employee
Portal
User
GIFMIS Timelines
Functional &
technical specificati
ons (Apr2013)
Bidding & Selection (Jul2013)
Business process review
(Aug2014)
System devt configuration & customization &
testing (Apr2015)
User training
(Sep2015)
Phase 1 Go Live for
Pilot (Oct2015)
32
GIFMIS Pilot Implementation