HIGHLIGHTS

Expenditure Program. The Department’s total expenditure program amounts to P20.2

billion in 2020, coming from new appropriations of P19.93 billion and automatic

appropriation of P249.49 million. This is 0.4% lower than the 2019 level of P20.3 billion.

Maintenance and Other Operating Expenses (MOOE) gets 69.9% of the total expenditure

program with P14.11 billion, while Personnel Services (PS) gets 19.12% with P3.86 billion and

Capital Outlay (CO) 11.0% with P2.21 billion.

The following agencies will receive additional budgets in 2020: NAST (31.2%), PNRI (26.7%),

PIVS (17.0%), FNRI (6.5%), SEI (5.1%), STII (5.0%), PCAANRRD (2.0%), PCHRD (1.7%),

PCIEETRD (1.4%), and TAPI (1.0%). On the other hand, the following will experience a

decline in their budgets in 2020: ASTI (-18.9%), PTRI (-16.8%), PAGASA (-12.2%), FPRDI

(-11.1%), OSEC (-4.7%), NRCP (-1.5%), ITDI (-1.0%), MIRDC (-0.9%), and PSHS (-0.3%).

The Office of the Secretary (OSEC) will receive the highest allocation with 25.7% or P5.19

billion in 2020 which is 4.97% lower than the 2019 level of P5.46 billion. The Science

Education Institute (SEI) will receive the second largest share at 23.5% (P4.51 billion),

followed by the Philippine Science High School (PSHS) with 13.2% (P2.68 billion).

New Appropriations. The new appropriations for the DOST in the amount of P19.93 billion

in 2020 (0.4% less than the 2019 level of P20.02 billion) is distributed among the General

Administration and Support Services (GASS), Support to Operations (STO) and Operations.

GASS will be allotted with 9.8% of the total or P1.95 billion. STO will be allotted 4.0%

(P801.16 million) and Operations will get the bulk with 86.2% or P17.18 billion.

The following agencies will receive additional appropriations in 2020: NAST (31.3%), PNRI

(27.6%), PIVS (17.2%), FNRI (6.5%), SEI (5.1%), STII (5.0%), PCAANRRD (2.1%),

PCHRD (1.7%), PCIEETRD (1.3%), and TAPI (1.0%). On the other hand, the following will

experience a decline in their budgets in 2020: ASTI (-19.1%), PTRI (-17.2%), PAGASA (-

12.5%), FPRDI (-11.2%), OSEC (-4.8%), NRCP (-1.4%), ITDI (-1.1%), MIRDC (-1.0%), and

PSHS (-0.5%).

Allocation by Major Program. The OSEC, SEI and PSHS will corner 56.3% of the total

Operations budget of the Department. The OSEC gets 27.3% which will be appropriated for

its strategic S&T program (P2.63 billion) and S&T program for regional and countryside

development (P2.10 billion). The SEI will get 27.3% which will be devoted to its S&T

scholarship program (P4.65 billion) and S&T education development program (P44.1 million).

The PSHS will get 14.1% share which will be spent on its science, technology, engineering and

mathematics (STEM) secondary education scholarships (P2.4 billion) and STEM promotion

program (P26.6 million).

The top three programs that will receive additional budgets in 2020 are: a) Advanced S&T

R&D Program of ASTI (62.1%), b) Metals Industry S&T Services Program of the MRDI

(45.1%), and c) S&T Recognition and Policy Advisory Program of NAST (38.2%). On the

other hand, these are the top three programs that will experience a decline in budget in 2020:

a) R&D on Atmospheric, Geophysical and Astronomical and Allied Sciences Program of

PAGASA (-58.2% ), b) Weather and Climate Forecasting and Warning Program of PAGASA

(-50.1%), and c) Advanced S&T Transfer Program of ASTI (-38.8%).

Budget Utilization and Unused Appropriations. The DOST’s budget utilization (based

on obligations-to-appropriations ratio) improved from 84.4% in 2014 to 95.3% in 2018. For

the period 2014 to 2018, the unused appropriations was highest in 2015 at P3.45 billion and

lowest in 2016 at P846.8 million. In 2018, unused appropriations was P1.01 billion.

Compliance with Audit Recommendations. The three agencies which registered the

highest full compliance with the COA recommendations were the Advanced Science and

Technology Institute (100%), Food and Nutrition Research Institute (96.8%), and the

Philippine Council for Health Research and Development (91.7%) in 2018. The SEI had the

lowest full compliance rate of 67.1%. The two agencies with the highest percentage of

recommendations not implemented were the SEI (32.9%) and the Philippine Institute of

Volcanology and Seismology (32.7%).

COA revealed the DOST’s failure to collect some P251 million from the beneficiaries of its

flagship Small Enterprise Technology Upgrading Program (Setup), meant to empower

MSMEs. Receivable balances pertaining to Setup projects include P461.15 million in past due

accounts for over one to 10 years, of which P251.04 million has been reported as uncollected

refunds due to the inadequate/ineffective monitoring and evaluation on the viability of

projects.

TABLE OF CONTENTS

Page

I. Mandate and Organizational Outcomes 1

Figure 1 DOST Cost Structure and Organizational Outcomes, 2020 2

II. Sources of Appropriations 3

Table 1. DOST Sources of Funds, 2016-2020 4

Table 1.1 OSEC Sources of Funds, 2016-2020 4

III. Expenditure Program 5

Table 2 Expenditure Program by Agency, 2016-2020 6

Table 3 Expenditure Program by General Expense Class, 2016-2020 7

Table 4 Unfilled Positions by Agency, 2016-2020 7

Table 5 Regional Distribution of DOST Budget, 2017-2020 7

IV. New Appropriations 8

Table 6 New Appropriations by Agency, 2016-2020 8

Table 7 DOST Summary of Programs for 2019-2020 10

Table 8 Operations Budget by Organizational Outcome

By Program and General Expense Class, 2020, OSEC 11

V. Performance Review 11

Table 9 Obligations-Appropriations Ratio (%), 2014-2018 12

Table 10 Unused Appropriations, 2014-2018 12

Table 11 Disbursement Rate by Agency, 2018-2018 14

Table 12 Budget Utilization by Major Program, OSEC, 2018 14

Table 13 Performance Indicators by Organizational Outcomes, 2016-2018 15

Table 14 Performance Indicators of Major Programs, 2018-2020 15

VI. COA Findings and Recommendations 16

Table 15 Status of Implementation of COA Recommendations 16

Table 16 COA Auditor’s Opinions, 2014-2018 18

References 18

Annex 19

1

DEPARTMENT OF SCIENCE AND

TECHNOLOGY1

I. MANDATE AND ORGANIZATIONAL OUTCOMES

1.1 Executive Order No. 128 mandates the Department of Science and Technology (DOST),

through its Office of the Secretary (OSEC) to provide central direction, leadership and

coordination of scientific and technological efforts and ensure that the results therefrom

are geared and utilized in areas of maximum economic and social benefits for the people.

1.2 All programs, projects and activities of the Department shall redound to the achievement

of the following outcomes: (1) innovation stimulated; (2) technology adoption promoted

and accelerated; (3) critical mass of globally competitive science, technology, innovation

(STI) human resources developed; (4) productivity and efficiency of communities and the

production sector, particularly micro, small and medium enterprises (MSMEs) improved;

(5) resiliency to disaster risks and climate change ensured; (6) inequality in STI capacities

and opportunities reduced; and (7) effective STI governance achieved.

1.3 The DOST has 18 attached agencies. There are seven research and development institutes,

six service institutes, three sectoral planning councils, and two advisory bodies.

1.4 Research and Development Institutes. The agencies involved in research and

development include the following: Advanced Science and Technology Institute (ASTI)

– research and development on information and communications technology and

microelectronics; Food and Nutrition Research Institute (FNRI) – on food and nutrition;

Forest Products Research and Development Institute (FPRDI) – on forest based industry;

Industrial Technology Development Institute (ITDI) – on food, materials, chemicals,

energy, biotechnology, environment and packaging; Metals Industry Research and

Development Center (MIRDC) – on metals and engineering industries; Philippine Nuclear

Research Institute (PNRI) – on application of radiation and nuclear materials; and the

Philippine Textile Research Institute (PTRI) – on the textile industry.

1.5 Service Institutes. The agencies that provide services are as follows: Philippine

Atmospheric, Geophysical and Astronomical Services Administration (PAGASA)

provides protection against natural calamities; Philippine Institute of Volcanology and

Seismology (PIVS) predicts occurrence of volcanic eruptions and earthquakes; Philippine

Science High School (PSHS) offers free secondary course on subjects pertaining to science;

1 This document was prepared by Eleanor Mamaril as input to the deliberations of the House Committee on Appropriations on

the FY 2020 proposed National Budget. The report benefited from inputs of Director Elsie Gutierrez, Executive Director Manuel Aquino and from overall guidance of Director-General Romulo E.M. Miral, Jr. The layout/design of the infographics by Alexiz S. Taaca and Carla P. Soriano are also acknowledged. The views, opinions, and interpretations in this report do not necessarily reflect the perspectives of the House of Representatives as an institution or its individual Members. This Agency Budget Notes is available online at http://cpbrd.congress.gov.ph/.

2

FIGURE 1

DOST COST STRUCTURE AND ORGANIZATIONAL OUTCOMES, 2020

NEW APPROPRIATIONS (P19,932.13M) OSEC – P 5,144.6M

Development, adoption and implementation of harmonized R&D agenda

ASTI – P 335.5M

Benefit incidence of ASTI services among target local firms and institutions

FNRI – P 533.5M

Reduction of malnutrition prevalence FPRDI- P218.4M

Benefit incidence of FPRDI services to target local firms and institutions

ITDI – P 524.2M

Benefit incidence of ITDI services to target local firms and institutions

MIRDC – P 251.5M

Benefit incidence of MIRDC services to target local metals and engineering firms

NAST – P 105.6M

Enhancing and fostering the policy environment for the development of S&T

NRCP – P 89.9M

Problem-focused multi-disciplinary basic research, policy formulation and collaboration among Filipino researchers enhanced

PAGASA – P 1,411.8M

Extensive application by Filipinos of accurate and robust science-based weather-related information and services to enhance their safety and resilience to disaster risks

PCAANRRD – P1,230.0M

Priorities in the harmonized R&D agenda addressed

PCHRD – P652.9M

Priorities in the National Unified Health Research Agenda addressed

PCIEETRD – P724.0M

Priorities in the harmonized R&D agenda addressed

PIVS – P588.1M

Enhanced safety and resiliency of Filipinos to volcanic eruptions, earthquakes, tsunamis and other related hazards.

PNRI – P 443.8M

Benefit incidence of PNRI services to target local firms and institutions

PSHS – P2,602.1M

Competitiveness of Filipinos in science and engineering increased

PTRI – P106.9M

Benefit incidence of PTRI services among target MSMEs/local firms in textile, garment, allied industries and other institutions

SEI – P4,741.1M

Competitiveness of Filipinos in science and engineering increased

STII – P98.4M

Public science and technology awareness increased

TAPI – P130.0M

Filipinos protecting and venturing for innovative and emerging technology-based projects increased

General Administration and Support Services

P1,946.56M (9.77%)

OSEC P 404.12

ASTI P49.57

FNRI P107.05

FPRDI P89.31

ITDI P98.06

MIRDC P103.67

NAST P17.43

NRCP P 30.43

PAGASA P249.88

PCAANRRD P109.48

PCHRD P36.70

PCIEETRD P57.69

PIVS P109.36

PNRI P153.84

PSHS P 185.06

PTRI P 39.17

SEI P 45.96

STII P28.12

TAPI P31.68

Support to Operations P801.16M (4.02%)

OSEC P45.83

ASTI -----

FNRI -----

FPRDI -----

ITDI -----

MIRDC -----

NAST -----

NRCP P12.88

PAGASA P593.67

PCAANRRD -----

PCHRD -----

PCIEETRD -----

PIVS P1.63

PNRI P147.16

PSHS -----

PTRI -----

SEI -----

STII ----

TAPI ----

Operations

P17,184.41M (86.21%)

OSEC P4,694.61

ASTI P285.92

FNRI P426.46

FPRDI P129.12

ITDI P426.14

MIRDC P147.81

NAST P88.17

NRCP P46.55

PAGASA P568.24

PCAANRRD P1,120.54

PCHRD P616.20

PCIEETRD P666.30

PIVS P477.13

PNRI P142.81

PSHS P2,417.02

PTRI P67.77

SEI P4,695.10

STII P70.25

TAPI P98.28

3

Science Education Institute (SEI) undertakes science and education training; Science and

Technology Information Institute (STII) undertakes training on science and technology

information; and the Technology Application and Promotion Institute (TAPI) promotes

commercialization of technologies.

1.6 Sectoral Planning Councils. The following are the agencies involved in the development

of policies by sector: Philippine Council for Agriculture, Aquatic and Natural Resources

Research and Development (PCAANRRD) formulates strategies for science and

technology development in agriculture, forestry, aquatic and natural resources sectors;

Philippine Council for Health Research and Development (PCHRD) formulates strategies

for health science and technology development; and Philippine Council for Industry,

Energy and Emerging Technology Research and Development (PCIEETRD) develops

national research and development competence in strategic areas of industry, energy and

emerging technology.

1.7 Advisory Bodies. The following agencies provide advisory services on basic researches:

the National Academy of Science and Technology (NAST) provides incentives to engage

in scientific and technological researches; and the National Research Council of the

Philippines (NRCP) promotes basic research programs.

See Appendix for the full description of mandates of attached agencies.

II. SOURCES OF APPROPRIATIONS

2.1 Total appropriations come from new, automatic, supplementary and continuing

appropriations, and budget adjustments. For the 2020 cash-based budgeting, total

available appropriations come only from new and automatic appropriations. The 2020

DOST budget can still be supplemented by budgetary adjustments in the course of its

implementation. Continuing appropriations from unused appropriations of the previous

fiscal years are, however, not expected from cash-based budgeting.

2.2 Total available appropriation for 2020 is a 4.23% decrease from the 2019 level (P21.07

billion). The total available appropriations of the DOST for 2020 is initially estimated at

P20.18 billion. The DOST will get new appropriations of P19.91 billion and automatic

appropriations of P250 million (Table 1). The shares of new appropriations and automatic

appropriations to the total available appropriations for 2020 are higher at 98.6% and 1.2%,

respectively, compared to their 2019 levels.

2.3 During the period 2016-2018, the average percentage share of new appropriations was

94.1% while that of continuing appropriations was at 4.5%.

4

TABLE 1

DOST SOURCES OF FUNDS, 2016-2020

Particulars Obligation-Based Cash-Based

2016 2017 2018 2019 2020

Levels (in Million Pesos)

New Appropriations 14,352.9 20,770.2 21,020.16 20,018.94 19,932.13

Supplemental Appropriations

Automatic Appropriations 232.4 225.9 246.97 242.55 249.49

Continuing Appropriations 1,011.9 569.9 - 811.03 -

Budgetary Adjustments 402.6 387.9 194.02 - -

Total Available Appropriations 15,999.1 21,953.1 21,461.00 21,073.46 20,181.63

LESS: Unused Appropriations 846.8 1,336.8 1,008.82 811.61 -

Total Obligations 15,152.5 20,616.0 20,452.28 20,260.48 20,181.63

% Share (%)

New Appropriations 89.71 94.61 97.95 95.00 98.76

Supplemental Appropriations

Automatic Appropriations 1.45 1.03 1.15 1.15 1.24

Continuing Appropriations 6.32 2.60 3.85

Budgetary Adjustments 2.52 1.77 0.90

Total Available Appropriations 100.0 100.0 100.0 100.0 100.0

Sources of basic data: NEP 2018-2020

2.4 Office of the Secretary (OSEC). The total available appropriations of the OSEC which

account for the bulk of the total DOST appropriations is P5.19 billion in 2020, which is

4.97% lower than the 2019 level of P5.46 billion. Ninety-nine percent (99%) of this is made

up of new appropriations. The remaining 1.0% comes from automatic appropriations

(Table 1.1).

TABLE 1.1 OSEC SOURCES OF FUNDS, 2016-2020

Particulars Obligation-Based Cash-Based

2016 2017 2018 2019 2020

New Appropriations 3,901.2 4,505.2 4,901.2 5,402.1 5,144.6

Automatic Appropriation of which RLIP* 32.1 36.2 41.1 44.3 45.00

Continuing Appropriations 134.5 65.3 14.7

Budgetary Adjustments 118.5 148.2 100.0

Transfers from:

Calamity Funds 77.5 61.3

Miscellaneous and Personnel Benefit Funds 102.0 55.1 20.4

Pension Gratuity Fund 16.5 15.3 18.2

DICT 0.3

Total Available Appropriations 4,186.3 4,754.8 5,042.2 5,461.2 5,189.6

LESS: Unused Appropriations 75.0 74.6 22.5 14.7

Total Obligations 4,111.3 4,680.2 5,019.8 5,446.4 5,189.6

New Appro-Total Available Appro Ratio (%) 93.19 94.75 97.20 98.92 99.13

* RLIP - Retirement and Life Insurance Premiums Sources of basic data: NEP 2018-2020

2.5 Budget adjustments significantly decreased from P118.5 million in 2016 to P100.0 million

in 2018 and consisted of transfers from miscellaneous and personnel benefit and pension

5

gratuity funds from 2016 to 2018, and additional transfers from the calamity fund in 2017

and 2018, and to the Department of Information and Communications Technology

(DICT) in 2017.

III. EXPENDITURE PROGRAM

3.1 The expenditure program is the programmed amount out of the total appropriations to

enable the national government to contract delivery of goods and services in a given fiscal

year. The DOST’s cash-based budget in 2020 is P20.2 billion., lower by 0.4% of the 2019

level (P20.3 billion). The OSEC, Science Education Institute (SEI), and the Philippine

Science High School (PSHS) combined get 62.4% of the total budget or P13.24 billion

(Table 2).

The following agencies will receive additional budgets in 2020: NAST (31.2%), PNRI

(26.7%), PIVS (17.0%), FNRI (6.5%), SEI (5.1%), STII (5.0%), PCAANRRD (2.0%),

PCHRD (1.7%), PCIEETRD (1.4%), and TAPI (1.0%). On the other hand, the following

will experience a decline in their budgets in 2020: ASTI (-18.9%), PTRI (-16.8%),

PAGASA (-12.2%), FPRDI (-11.1%), OSEC (-4.7%), NRCP (-1.5%), ITDI (-1.0%),

MIRDC (-0.9%), and PSHS (-0.3%).

3.2 From 2016 to 2018, the total expenditure program grew, on the average, by 13.4%, from

P15.15 billion in 2016 to P21.23 billion in 2018. In 2020, the list of agencies with the

biggest cash-based budgets are the OSEC with P5,189.6 million or 25.7% of total, followed

by SEI with P4,744.2 million (23.5% of total), and PSHS with P2,671.8 million or 13.2%.

3.3 By General Expense Class. Maintenance and Other Operating Expenses (MOOE) will

get the highest share of the expenditure program in 2020 at 69.9% amounting to P14.11

billion. It is followed by Personnel Services (PS) at 19.1% (P3.9 billion) and Capital Outlay

(CO) at 11% (P2.2 billion). The percentage shares of PS and MOOE in 2020 are lower

than in 2019 by less than one percentage point. On the other hand, the percentage share

of CO is higher by one percentage point (Table 3).

The 2020 allocations for PS and MOOE were smaller than the 2019 levels by 1.53% and

0.7%, respectively. CO allocations grew by 3.76% in 2020.

3.4 Unfilled Positions. The share of total unfilled positions to authorized positions in 2020

is 14.3%, same as the current year’s share. Out of the 798 unfilled positions, 562 are in

these three agencies: PSHS with 263, PAGASA with 218, and OSEC with 81 (Table 4).

3.5 Regional Distribution. The National Capital Region (NCR) and Central Office will get

the bulk of the cash appropriations in 2020. NCR gets 56.4% or P11.39 billion while the

Central Office gets 16.1% (or P3.25 billion). The next big share at 9.1% goes to Region 4B

(or P1.84 billion). The Autonomous Region of Muslim Mindanao will not get any cash

appropriations again in 2020 (Table 5).

6

3.6 The share to total expenditure program of the NCR will increase from 55.0% in 2019 to

56.4% in 2020, while the share of the Central Office will slightly decrease from 16.9% in

2019 to 16.1% in 2020. Regions CAR, 4A, 9 and CARAGA will receive higher shares than

their 2019 levels.

TABLE 2

EXPENDITURE PROGRAM BY AGENCY, 2016-2020 (AMOUNTS IN MILLION PESOS)

Particulars Obligation-Based Cash-Based

2016 2017 2018 2019 2020

OSEC 4,111.3 4,680.2 5,019.8 5,446.4 5,189.6

ASTI 1,148.2 511.4 522.5 418.9 339.8

FNRI 273.9 304.7 369.7 508.5 541.6

FPRDI 161.4 261.1 247.8 255.1 226.9

ITDI 293.9 729.6 541.7 546.0 540.3

MIRDC 324.4 331.1 367.0 264.3 261.8

NAST 67.1 75.2 73.9 81.3 106.7

NRCP 53.2 65.6 73.2 93.2 91.8

PAGASA 1,408.5 2,980.0 1,961.6 1,646.2 1,444.6

PCAANRRD 972.8 1,237.8 1,293.7 1,216.5 1,241.4

PCHRD 499.3 585.8 609.9 645.2 656.0

PCIEETRD 712.8 837.8 859.2 718.4 728.5

PIVS 404.8 535.5 501.1 509.7 596.2

PNRI 283.1 339.8 362.5 359.2 455.1

PSHS 1,930.1 3,841.8 3,576.8 2,678.9 2,671.8

PTRI 79.6 88.8 120.7 132.8 110.5

SEI 2,247.5 2,956.7 3,718.7 4,512.1 4,744.2

STII 60.4 97.1 100.0 96.4 101.2

TAPI 120.0 126.0 136.6 132.3 133.6

Total Department 15,152.2 20,615.8 20,452.3 20,261.5 20,181.6

Share to Total Department (%)

OSEC 27.1 22.7 24.5 26.9 25.7

ASTI 7.6 2.5 2.6 2.1 1.7

FNRI 1.8 1.5 1.8 2.5 2.7

FPRDI 1.1 1.3 1.2 1.3 1.1

ITDI 1.9 3.5 2.6 2.7 2.7

MIRDC 2.1 1.6 1.8 1.3 1.3

NAST 0.4 0.4 0.4 0.4 0.5

NRCP 0.4 0.3 0.4 0.5 0.5

PAGASA 9.3 14.5 9.6 8.1 7.2

PCAANRRD 6.4 6.0 6.3 6.0 6.2

PCHRD 3.3 2.8 3.0 3.2 3.3

PCIEETRD 4.7 4.1 4.2 3.5 3.6

PIVS 2.7 2.6 2.5 2.5 3.0

PNRI 1.9 1.6 1.8 1.8 2.3

PSHS 12.7 18.6 17.5 13.2 13.2

PTRI 0.5 0.4 0.6 0.7 0.5

SEI 14.8 14.3 18.2 22.3 23.5

STII 0.4 0.5 0.5 0.5 0.5

TAPI 0.8 0.6 0.7 0.7 0.7

Sources of basic data: BESF 2018- 2020

7

TABLE 3

EXPENDITURE PROGRAM BY GENERAL EXPENSE CLASS, 2016-2020 (AMOUNTS IN MILLION PESOS)

Part.

Obligation-Based Cash-Based

2016 2017 2018 2019 2020

Amount % Amount % Amount % Amount % Amount %

PS 2,998.0 19.79 3,340.3 16.20 3,600.6 17.60 3,918.9 19.34 3,859.0 19.12

MOOE 10,063.0 66.41 11,531.0 55.93 12,981.9 63.47 14,211.1 70.14 14,111.1 69.92

CO 2,091.2 13.80 5,744.5 13.80 3,869.7 18.92 2,131.4 10.52 2,211.5 10.96

Total 15,152.2 100.00 20,615.8 100.00 20,452.3 100.00 20,261.5 100.00 20,181.6 100.00

Sources of basic data: BESF 2018- 2020

TABLE 4 UNFILLED POSITIONS BY AGENCY, 2016-2020

Agency Number of Unfilled Positions Share to Authorized Positions (%)

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

OSEC 90 86 80 81 81 11.2 10.5 9.8 9.9 9.9

ASTI 18 11 11 9 9 22.0 12.8 12.6 10.3 10.3

FNRI 25 28 23 23 22 13.4 15.1 12.4 12.4 11.8

FPRDI 5 8 12 16 16 2.6 4.2 6.3 8.3 8.3

ITDI 52 47 39 38 38 14.1 12.7 10.6 10.3 10.3

MIRDC 11 12 9 11 11 4.9 5.3 3.9 4.8 4.8

NAST 0 7 5 2 2 0 38.9 27.8 11.1 11.1

NRCP 2 2 1 6 6 5.4 5.4 2.7 14.3 14.3

PAGASA 181 206 221 218 218 17.5 19.9 21.4 21.1 21.1

PCAANRRD 27 34 29 29 29 10.6 13.4 11.4 11.4 11.4

PCHRD 4 8 6 5 5 6.7 13.3 10.0 8.3 8.3

PCIEETRD 7 11 12 6 6 9.9 15.5 16.2 8.1 8.1

PIVS 28 37 31 31 31 11.8 15.6 13.1 13.1 13.1

PNRI 55 42 40 38 38 21.0 16.0 15.3 14.5 14.5

PSHS 176 314 274 263 263 16.4 22.7 18.9 18.2 18.2

PTRI 8 9 9 9 9 9.0 10.1 10.1 10.1 10.1

SEI 7 10 8 9 9 13.2 17.2 13.8 15.5 15.5

STII 2 1 0 0 0 3.7 1.9 0 0 0

TAPI 3 8 2 5 5 5.1 12.5 3.1 7.8 7.8

TOTAL 701 881 812 799 798 13.6 16.0 14.6 14.3 14.3

Source: Staffing Summary 2018-2020

TABLE 5

REGIONAL DISTRIBUTION OF THE DOST BUDGET, 2017-2020 (AMOUNTS IN MILLION PESOS)

Region

Obligation-Based Cash-Based

2017 2018 2019 2020

Amount Share

(%) Amount

Share (%)

Amount Share

(%) Amount

Share (%)

Nationwide 0 - 0 0 - 0 -

Central Office 2,360.5 11.4 2,741.7 13.4 3,429.9 16.9 3,247.5 16.1

NCR 11,454.7 55.6 10,749.1 52.6 11,145.3 55.0 11,389.2 56.4

CAR 296.7 1.4 271.0 1.3 249.7 1.2 264.2 1.3

Reg 1 339.5 1.6 376.3 1.8 250.6 1.2 229.7 1.1

Reg 2 460.5 2.2 390.0 1.9 363.6 1.8 332.7 1.6

Reg 3 492.7 2.4 422.6 2.1 324.8 1.6 290.0 1.4

Reg 4A 1,918.5 9.3 2,092.7 10.2 1,753.5 8.7 1,837.3 9.1

Reg 4B 201.0 1.0 372.3 1.8 238.5 1.2 220.3 1.1

Reg 5 368.2 1.8 274.8 1.3 306.0 1.5 281.4 1.4

Reg 6 316.0 1.5 395.4 1.9 324.6 1.6 288.0 1.4

Reg 7 396.5 1.9 310.6 1.5 289.4 1.4 285.8 1.4

Reg 8 432.1 2.1 297.2 1.5 288.7 1.4 225.4 1.1

Reg 9 206.6 1.0 317.4 1.6 196.7 1.0 237.7 1.2

Reg 10 374.8 1.8 344.0 1.7 315.9 1.6 323.1 1.6

Reg 11 276.2 1.3 291.5 1.4 282.1 1.4 254.0 1.3

Reg 12 421.9 2.0 463.4 2.3 270.4 1.3 237.2 1.2

CARAGA 293.5 1.4 342.1 1.7 231.7 1.1 238.1 1.2

ARMM 5.9 0.0 0 - 0 - 0 -

Total 20,615.8 100.0 20,452.3 100.0 20,261.5 100.0 20,181.6 100.0

Source: BESF 2019-2020

8

IV. NEW APPROPRIATIONS

4.1 The proposed new appropriations of the DOST and its attached agencies for FY 2020

amounts to P19.9 billion, 0.4% less than the 2019 level of P20.02 billion. In terms of share

to the total Department budget, the OSEC will get the biggest chunk at 25.8% or P5.14

billion (Table 6). The SEI will get 23.8% (P4.74 billion) followed by PSHS at 13.1% (P2.60

billion). These three agencies will corner 62.7% of the total new appropriations of the

DOST.

TABLE 6 NEW APPROPRIATIONS BY AGENCY, 2016-2020

(AMOUNTS IN MILLION PESOS)

Particulars Obligation-Based Cash-Based

2016 2017 2018 2019 2020

OSEC 3,901.2 4,505.2 4,901.2 5,402.1 5,144.6

ASTI 870.2 595.2 545.6 414.6 335.5

FNRI 259.2 266.7 368.5 500.8 533.5

FPRDI 138.9 259.4 242.8 246.0 218.4

ITDI 254.1 763.2 553.0 530.0 524.2

ICTO 3,677.1

MIRDC 301.5 313.7 354.4 254.0 251.5

NAST 67.1 86.2 81.3 80.4 105.6

NRCP 45.7 64.5 71.3 91.2 89.9

PAGASA 1,210.2 3,297.6 2,456.2 1,613.5 1,411.8

PCAANRRD 949.4 1,237.4 1,287.3 1,205.0 1,230.0

PCHRD 493.0 581.6 607.2 642.1 652.9

PCIEETRD 686.9 845.8 860.3 714.6 724.0

PIVS 451.9 471.5 533.4 502.0 588.1

PNRI 248.8 336.7 335.4 347.7 443.8

PSHS 1,984.1 3,900.5 3,769.9 2,614.2 2,602.1

PTRI 74.7 79.8 116.2 129.1 106.9

SEI 2,244.6 2,951.7 3,711.5 4,509.1 4,741.1

STII 57.8 93.9 98.3 93.7 98.4

TAPI 113.4 122.6 126.6 128.7 130.0

Total Department 18,029.3 20,763.0 21,020.1 20,019.0 19,932.1

Share to Total Department (%)

OSEC 21.64 21.69 23.32 26.98 25.81

ASTI 4.83 2.87 2.80 2.07 1.68

FNRI 1.44 1.28 1.75 2.50 2.68

FPRDI 0.77 1.25 1.16 1.23 1.10

ITDI 1.41 3.67 2.63 2.65 2.63

ICTO 20.39

MIRDC 1.67 1.51 1.69 1.27 1.26

NAST 0.37 0.41 0.39 0.40 0.53

NRCP 0.25 0.31 0.34 0.46 0.45

PAGASA 6.71 15.87 11.68 8.06 7.08

PCAANRRD 5.27 5.96 6.12 6.02 6.17

PCHRD 2.73 2.80 2.89 3.21 3.28

PCIEETRD 3.81 4.07 4.09 3.57 3.63

PIVS 2.51 2.27 2.54 2.51 2.95

PNRI 1.38 1.62 1.60 1.74 2.23

PSHS 11.0 18.78 17.93 13.06 13.05

PTRI 0.41 6.38 0.55 0.64 0.54

SEI 12.45 14.21 17.66 22.52 23.79

STII 0.32 0.45 0.47 0.47 0.49

TAPI 0.63 0.59 0.60 0.64 0.65

Sources of basic data: GAA 2016- 2019 and NEP 2020

9

The following agencies will receive additional appropriations in 2020: NAST (31.3%),

PNRI (27.6%), PIVS (17.2%), FNRI (6.5%), SEI (5.1%), STII (5.0%), PCAANRRD

(2.1%), PCHRD (1.7%), PCIEETRD (1.3%), and TAPI (1.0%). On the other hand, the

following will experience a decline in their budgets in 2020: ASTI (-19.1%), PTRI (-17.2%),

PAGASA (-12.5%), FPRDI (-11.2%), OSEC (-4.8%), NRCP (-1.4%), ITDI (-1.1%),

MIRDC (-1.0%), and PSHS (-0.5%).

4.2 DOST Programs. The OSEC, SEI and PSHS will corner 68.7% of the total Operations

budget of the Department (Table 7). The OSEC gets 27.3% which will be appropriated for

its strategic S&T program (P2.63 billion) and S&T program for regional and countryside

development (P2.10 billion). SEI will get 27.3% which will be devoted to its S&T

scholarship program (P4.65 billion) and S&T education development program (P44.1

million). PSHS will get 14.1% share which will be spent on its science, technology,

engineering and mathematics (STEM) secondary education scholarships (P2.4 billion) and

STEM promotion program (P26.6 million).

The top three programs that will receive additional budgets in 2020 are: a) Advanced S&T

R&D Program of ASTI (62.1%), b) Metals Industry S&T Services Program of MRDI

(45.1%), and c) S&T Recognition and Policy Advisory Program of NAST (38.2%). On the

other hand, these are the top three programs that will experience a decline in budget in

2020: a) R&D on Atmospheric, Geophysical and Astronomical and Allied Sciences

Program of PAGASA (-58.2%), b) Weather and Climate Forecasting and Warning

Program of PAGASA (-50.1%), and c) Advanced S&T Transfer Program of ASTI (-

38.8%).

4.3 OSEC Programs’ Budget. By expense class, the Operations budget of the OSEC will be

distributed as follows: 10.0% or P471.56 million for PS; 87.8% or P4.12 billion for MOOE;

and 0.5% or P23.56 million for capital outlay (CO) (Table 8).

4.4 The budget for Operations will be distributed between two programs to achieve the

OSEC’s organization outcome of increased benefits to Filipinos from scientific knowledge

and cutting-edge technological innovations, namely: Program 1 – Strategic S&T programs;

and Program 2 – S&T program for regional and countryside development.

4.5 The PS budget of 471.56 million will entirely be allocated to Program 2. The MOOE

budget of P4.12 billion will be divided as follows: P2.63 billion to Program 1 and P1.57

million to Program 2. The CO budget of P23.56 million will be allocated to Program 2.

10

TABLE 7

DOST SUMMARY OF PROGRAMS FOR 2019-2020

Program Implementing

Agency

Amount(M) Growth Rate (%)

%Share to Total Program Cash-Based

2019 2020 ’19-‘20 2019 2020

Strategic S&T program OSEC 3,012.1 2,632.5 -12.6 16.88 15.32

S&T program for regional and countryside development

OSEC 2,115.4 2,062.1 -2.5 11.86 12.00

Advanced S&T transfer program ASTI 305.9 187.1 -38.8 1.71 1.09

Advanced S&T R&D program ASTI 61.0 98.9 62.1 0.34 0.58

Nutritional assessment and monitoring program FNRI 341.3 336.7 -1.3 1.91 1.96

Food and nutrition R&D program FNRI 48.5 55.4 14.2 0.27 0.32

Food and nutrition technology and knowledge diffusion program

FNRI 33.5 34.4 2.7 0.19 0.20

Forest products R&D program FPRDI 94.3 92.2 -2.2 0.53 0.54

Forest products S&T services program FPRDI 19.6 19.1 -2.6 0.11 0.11

Forest products technology transfer program FPRDI 19.4 17.9 -7.7 0.11 0.10

Industrial technology technical services program ITDI 233.8 201.3 -13.9 1.31 1.17

Industrial technology R&D program ITDI 153.6 198.5 29.2 0.86 1.16

Industrial technology transfer program ITDI 43.1 26.4 -38.7 0.24 0.15

Metals industry research program MIRDC 108.5 92.9 -14.4 0.61 0.54

Metals industry science and technology services program

MIRDC 22.6 32.8 45.1 0.13 0.19

Metals industry technology transfer program MIRDC 23.3 22.1 -5.2 0.13 0.13

S&T recognition and policy advisory program NAST 63.8 88.2 38.2 0.36 0.51

Basic R&D management program NRCP

NRCP 46.3 44.9 -3.0 0.26 0.26

Policy development for S&T advisory program NRCP 2.1 1.7 -19.1 0.01 0.01

Weather and climate forecasting and warning program

PAGASA 901.7 450.1 -50.1 5.05 2.62

R&D on atmospheric, geophysical and astronomical and allied sciences program

PAGASA 156.1 65.2 -58.2 0.88 0.38

Flood forecasting and warning program PAGASA 54.6 52.9 -3.1 0.31 0.31

National AANR sector R&D program PCAANRD 1,096.0 1,120.5 2.2 6.14 6.52

National health R&D program PCHRD 620.4 616.2 -0.7 3.48 3.59

National industry, energy and emerging industry sectors R&D program

PCIEETRD 655.7 666.3 1.6 3.68 3.88

Volcano, earthquake and tsunami monitoring and warning program

PIVS 295.4 342.8 16.1 1.66 1.99

Hazards mapping, risk assessment and R&D program

PIVS 87.0 111.0 27.6 0.49 0.65

Disaster preparedness and risk reduction program PIVS 24.0 23.3 -2.9 0.13 0.14

Nuclear S&T services and advisory program PNRI 80.8 83.3 3.1 0.45 0.48

Nuclear R&D program PNRI 43.4 43.2 -0.5 0.24 0.25

Nuclear regulations, security and safeguards program

PNRI 18.7 16.3 -12.8 0.10 0.09

STEM secondary education on scholarship basis program

PSHS 2,306.5 2,390.4 3.6 12.93 13.91

STEM promotion program PSHS 28.4 26.6 -6.3 0.16 0.15

Textile and other textile-related R&D program PTRI 52.1 32.0 -38.6 0.29 0.19

Textile S&T services program PTRI 21.0 15.0 -28.6 0.12 0.09

Textile technology transfer program PTRI 20.8 20.8 - 0.12 0.12

S&T scholarship program SEI 4,425.3 4,651.0 5.1 24.81 27.06

S&T education development program SEI 44.5 44.1 -0.9 0.25 0.26

S&T information program STII 60.8 70.2 15.5 0.34 0.41

Technology application and invention development program

TAPI 98.2 98.3 0.1 0.55 0.57

Source: GAA 2019 and NEP 2020

11

TABLE 8

OPERATIONS BUDGET BY ORGANIZATIONAL OUTCOME BY PROGRAM AND GENERAL EXPENSE CLASS, 2020

OFFICE OF THE SECRETARY

Particulars LEVELS (IN MILLION PESOS)

PS MOOE CO TOTAL

OO: Increased benefits to Filipinos from scientific knowledge and cutting-edge technological innovations

Program 1: Strategic Science and Technology (S&T) programs

Support to the harmonized national S&T agenda 2,632.52 2,632.52

Program 2: S&T program for regional and countryside development

Diffusion and transfer of knowledge and technologies 471.56 1,566.96 23.56 2,062.08

Total Operations 471.56 4,119.48 23.56 4,694.61

Particulars SHARE TO TOTAL OPERATIONS (%)

PS MOOE CO TOTAL

Program 1: Strategic Science and Technology (S&T) programs

Support to the harmonized national S&T agenda 62.7 56.1

Program 2: S&T program for regional and countryside development

Diffusion and transfer of knowledge and technologies 100.0 37.3 100.0 43.9

Total Operations 100.0 100.0 100.0 100.0

Source: NEP 2020

V. PERFORMANCE REVIEW

5.1 Obligations-Appropriations Ratio. Appropriation refers to an authorization made by

law or legislative enactment directing payment out of government funds under specified

conditions or for specific purpose. In 2018, the DOST has obligated 95.3% of its

appropriations (Table 9). The agencies with the highest obligations-appropriations ratios

are the following: Philippine Council for Health Research and Development (99.7%);

Science and Education Institute (100.0%); Philippine Council for Agriculture, Aquatic and

Natural Resources Research and Development (99.5%), OSEC (99.6%) and the National

Research Council of the Philippines (99.8%).

5.2 Unused Appropriations. From 2014 to 2018, the DOST on average had unused

appropriations of about P1.80 billion annually (Table 10). From 2014 to 2015, the bulk of

the DOST’s unused appropriation was contributed by the Information and

Communications Technology Office (ICTO) which was later absorbed by the Department

of Information and Communications Technology (DICT) in 2016.

In 2018, PAGASA reported the highest amount of unused appropriations at P563.1

million. COA in its audit report recommended that PAGASA facilitate the completion of

the obligated projects; promptly initiate early procurement process and conduct adequate

planning and monitoring to improve its absorptive capacity.

12

TABLE 9

OBLIGATION-APPROPRIATIONS RATIO (%), 2014-2018

Particulars 2014 2015 2016 2017 2018

OSEC 95.6 95.1 98.2 98.4 99.6

ASTI 85.5 51.2 91.5 81.6 94.4

FNRI 85.1 89.8 87.6 98.3 96.9

FPRDI 99.2 98.6 99.2 95.1 96.8

ITDI 92.0 94.6 97.1 93.0 92.1

ICTO 39.5 48.1

MIRDC 84.4 95.9 94.5 96.1 99.2

NAST 88.6 90.3 92.8 86.4 90.1

NRCP 98.8 99.8 99.3 98.2 99.8

PAGASA 73.5 94.8 93.7 86.9 78.3

PCAANRRD 99.9 99.8 98.7 98.6 99.5

PCHRD 99.2 99.7 99.5 100.0 99.7

PCIEETRD 99.6 95.8 98.4 98.5 99.4

PIVS 82.8 86.0 74.7 88.3 91.9

PNRI 96.2 96.8 95.2 93.2 99.7

PSHS 82.0 87.2 86.4 89.5 93.0

PTRI 97.5 92.3 91.7 97.6 99.7

SEI 99.7 99.8 99.9 99.9 100.0

STII 94.6 96.3 93.1 96.7 96.1

TAPI 99.4 99.7 99.0 97.7 99.7

Total Department 84.4 83.1 94.7 93.9 95.3

Sources of basic data: NEP 2016-2020

5.3 Disbursement Rate. Disbursement rate refers to the ratio of disbursements or settlement

of actual government obligations in the form of cash, check and other modes of payment

to total obligations. Low disbursement rates may indicate that an agency is not

implementing its projects in a timely manner during the year.

The disbursement rate of DOST improved from 69.1% in 2017 to 76.7% in 2018. In 2018,

these agencies have the lowest disbursement rates: PAGASA at 42.0%, PSHS with 58.9%,

and ITDI with 59.7% (Table 11).

5.4 Budget Utilization by Major Program. In 2018, all the appropriations for the three

major programs of the OSEC were obligated but were not completely disbursed.

Operations had a disbursement rate of only 60.3%, Support to Operations, 60.3%, and

GASS, 94.1% (Table 12).

5.5 Performance Indicators by Organizational Outcomes. In 2018, DOST set a target of

23,860 MSMEs to be assisted, but has actually assisted 52,790 MSMEs – which means that

it exceeded its target by 121.25%. This organizational outcome was also exceeded with

respect to its 2016 and 2017 targets by 0.14% and 2.85%, respectively (Table 13).

13

With regard to the Philippines’ ranking in technological readiness and innovative pillars in

the World Economic Forum Global Competitiveness Index, the country’s ranking

deteriorated in the technological readiness and in innovative pillars from 2017 to 2018.

The Philippines’ ranking fell 13 notches in the technological readiness pillar (from 68 out

of 138 countries in 2016 to 83 out of 137 countries in 2017), and 14 notches down in the

innovative pillar (43th in 2016 to 62nd in 2017).

TABLE 10 UNUSED APPROPRIATIONS, 2014-2018

(IN MILLION PESOS)

Particulars 2014 2015 2016 2017 2018

OSEC 123.4 155.9 75.0 74.6 22.5

ASTI 13.2 378.6 106.9 122.1 30.9

FNRI 45.7 36.4 38.6 5.2 11.7

FPRDI 1.5 2.3 1.3 13.5 8.3

ITDI 24.1 15.9 8.9 55.0 46.3

ICTO 1,220.9 2,354.0

MIRDC 102.9 12.4 18.8 13.5 2.8

NAST 8.1 6.6 5.2 11.8 8.1

NRCP 0.9 0.1 0.4 1.2 0.2

PAGASA 500.3 207.8 93.9 450.0 543.1

PCAANRRD 1.7 1.6 12.7 17.9 7.0

PCHRD 3.6 1.4 2.4 0.2 2.0

PCIEETRD 2.1 26.5 11.3 12.9 4.9

PIVS 63.6 63.3 137.0 71.3 44.0

PNRI 10.3 9.0 14.3 24.7 1.1

PSHS 198.7 169.8 303.9 452.8 269.9

PTRI 1.6 5.8 7.3 2.2 0.4

SEI 4.4 4.1 3.1 1.6 1.3

STII 3.3 2.1 4.5 3.3 4.0

TAPI 0.6 0.4 1,296 3.0 0.4

TOTAL 2,330.6 3,453.7 846.8 1,336.9 1,008.8

Source of basic data: NEP 2016- 2020

14

TABLE 11

DISBURSEMENT RATE BY AGENCY, 2017-2018 (AMOUNTS IN MILLION PESOS)

Particulars

2017 2018

Oblig Disb. Disb

Ratio Oblig. Disb.

Disb. Ratio

OSEC 4,680.2 3,360.1 71.8 5,019.8 3,838.2 76.5

ASTI 541.4 238.2 44.0 522.5 336.2 64.4

FNRI 304.7 245.0 80.4 369.7 350.2 94.7

FPRDI 261.1 236.9 90.8 247.8 222.9 90.0

ITDI 729.6 323.8 44.4 541.7 323.2 59.7

MIRDC 331.1 229.6 69.3 367.0 286.2 78.0

NAST 75.2 72.3 96.1 73.9 66.6 90.2

NRCP 65.6 63.9 97.4 73.2 70.5 96.3

PAGASA 2,980.0 863.4 29.0 1,961.6 822.9 42.0

PCAANRRD 1,237.8 1,198.5 96.8 1,293.7 1,134.3 87.7

PCHRD 585.8 565.9 96.6 609.8 605.2 99.2

PCIEETRD 537.8 793.0 94.7 860.3 760.6 88.4

PIVS 535.5 438.4 81.9 501.1 402.1 80.2

PNRI 339.8 307.9 90.6 362.5 332.1 91.6

PSHS 3,841.8 2,073.5 54.0 3,576.8 2,106.1 58.9

PTRI 88.8 81.0 91.2 120.7 108.7 90.0

SEI 2,956.7 2,947.7 99.7 3,718.7 3,714.2 99.9

STII 97.1 82.9 85.4 100.0 86.7 86.7

TAPI 126.0 119.3 94.7 132.6 129.6 97.7

TOTAL 20,615.8 14,241.3 69.1 20,453.4 15,696.6 76.7

Note: Disbursement rate is the percentage of disbursements over obligations.

Source: 2017-2018 SAAODB DBM

TABLE 12

BUDGET UTILIZATION BY MAJOR PROGRAM, OSEC, 2018 AMOUNTS IN MILLION PESOS

Program Approp Oblig Disb Oblig Rate (%)

Disb Rate (%)

GASS General management and supervision Administration of personnel benefits 147.6 147.5 138.8 99.9 94.1

STO Planning, policy formulation, monitoring, evaluation and management information services Conduct of scientific and technological conferences and exhibitions and international/local science and technological networking and other related activities 75th Mtg of the ASEAN Committee on Science and Technology and the 10th Informal ASEAN Ministerial Mtg on Science and Technology 39.3 39.2 34.0 99.7 86.7

Operations Strategic S&T program 2,456.2 2,456.2 1,480.8 100.0 60.3

Total 2,643.0 2,642.9 1,653.5 100.0 62.6

Note: Obligation rate is the ratio of obligations to appropriations. Disbursement rate is the ratio of disbursements to obligations.

Source: SAAODB (FAR No. 1 in Transparency Seal), DOST

15

TABLE 13

PERFORMANCE INDICATORS BY ORGANIZATIONAL OUTCOMES, 2016-2018

Program 2016

Actual 2017 Actual

2018

Target Actual

Development, adoption and implementation of harmonized R&D agenda

100% 100% N/A N/A

Increase in the number of MSMEs assisted 0.14% 2.85% 23,860 52,790

PH ranking in technological readiness and innovative pillars of the World Economic Forum Global Competitiveness Index

68/138 in technological

readiness, 48/138 in in

innovative pillars

83/137 in technological

readiness, 62/137 in

innovative pillars

N/A N/A

Source: NEP 2019-2020

5.6 Performance Indicators of Major Programs. The two major programs of the DOST

are the SEI’s S&T scholarship program with a proposed allocation of P4.65 billion and the

OSEC’s strategic S&T program with a proposed allocation of P2.63 billion in 2020. Table

14 shows the targets of the outcome and output indicators for 2018 to 2020. In 2018, the

actual performance of the outcome and output indicators were generally well above their

targets.

However, the Department should review the targets it sets since almost all indicators have

targets pegged at the same level as the baseline. The baseline is the minimum or starting

point used for comparison.

TABLE 14 PERFORMANCE INDICATORS OF MAJOR PROGRAMS, 2018-2020

Program 2018 2019

Target 2020

Target Target Actual

S&T scholarship program ( P4.65B)

Outcome Indicators

1.percentage of scholars employed in STEM--related fields 60% 79% 60% 65%

2.percentage of municipalities served 96% 97% 96% 97%

Output indicators

1.Number of scholars supported

Undergraduate level

Master’s program

Doctoral program

23,393

3,495

1,526

23,531

3,632

1,270

26,831

4,206

1,985

28,900

4,264

1,927

2.percentage of scholars graduating within the scheduled full-time program

Undergraduate level

Master’s program

Doctoral program

85%

70%

40%

98%

71%

61%

85%

70%

40%

85%

70%

40%

3.percentage of scholarship payments with a variance of actual payment to scheduled payment of more than one (1) day

90% 97%

90% 90%

Strategic S&T program (P2.6B)

Outcome Indicators

1.percentage of projects completed within the required timeframe 10% n/a 14% 16%

2.percentage of projects completed which are published in peer-reviewed journals, presented in national and/or international conferences or with IP filed or approved

90% 90%

90% 90%

3. percentage of priorities in the harmonized R&D agenda addressed 80% 80% 80% n/a

Output Indicators

1. Number of projects funded 152 164 98 173

2. percentage of programs received that are evaluated and approved within the standard period of 95 days

77% 89% n/a 75%

3. percentage of new and on-going projects monitored 100% 100% n/a n/a

4. Number of grantees supported 80 218 98 173

Source: NEP 2019-2020

16

“Targets should not be set very low such that they can be achieved easily and, therefore,

do not motivate and inspire the staff to improve performance. For clearly defining and

setting the target it is necessary to know the baseline and to set various benchmarks and

the end-line to be achieved within a feasible timeline.” (http://paiman.jsi.com/)

VI. COA FINDINGS AND RECOMMENDATIONS

6.1 Status of Implementation of COA Recommendations. Table 15 shows the status of

implementation of the Commission on Audit’s recommendations presented in the 2018

DOST Annual Audit Report. The three agencies which registered highest full compliance

were the Advanced Science and Technology Institute (100%), Food and Nutrition

Research Institute (96.8%), and Philippine Council for Health Research and Development

(91.7%). The Science Education Institute had the lowest full compliance rate of 67.1%.

TABLE 15

STATUS OF IMPLEMENTATION OF COA RECOMMENDATIONS AS OF DECEMBER 2018

PARTICULARS TOTAL FULLY IMPLEMENTED PARTIALLY IMPLEMENTED NOT IMPLEMENTED

NUMBER (%) NUMBER (%) NUMBER (%)

OSEC 65 56 86.2 - - 9 13.8

ASTI 18 18 100.0 - - 0 0.0

FNRI 31 30 96.8 - - 1 3.2

ITDI 39 33 84.6 - - 6 15.4

NAST 22 17 77.3 - - 5 22.7

NRCP 28 26 92.9 - - 2 7.1

PAGASA

PCHRD 35 34 91.7 - - 1 2.9

PCIEETRD 43 34 79.1 - - 9 20.9

PIVS 49 33 67.3 - - 16 32.7

PNRI 25 22 88.0 - - 3 12.0

PSHS - -

PTRI 23 21 91.3 - - 2 8.7

SEI 70 47 67.1 - - 23 32.9

STII 25 22 88.0 - - 3 12.0

TAPI 29 23 79.3 - - 6 20.7

Source: 2017 Annual Audit Reports (Part 3). Available at www.coa.gov.ph

6.2 The two agencies with the highest percentage of recommendations not implemented were

the Science Education Institute (32.9%) and the Philippine Institute of Volcanology and

Seismology (PIVS) (32.7%). The SEI has yet, among others, to observe proper accounting

and maintain separate books of accounts for each fund source; continue sending demand

letters/notices to all persons with outstanding balance to liquidate/settle immediately their

accountabilities and/or refund all unexpended balances; regularly update the database to

17

identify active scholars and those who are inactive/terminated in order to provide

appropriate measure or action to be taken to facilitate liquidation.

6.3 To mention a few, the PIVS has still to update/accomplish ledgers with complete details

relevant to specific projects/construction to facilitate the analysis/evaluation and

reconciliation of related accounts; reconcile beginning balance of P30.034 million with the

Land Bank and provide necessary details in their books.

6.4 Most of COA’s observations touched on the following issues (i) internal control

deficiencies on cash management; (ii) dormant funds/accounts; (iii) delayed submission of

financial reports; (iv) non-compliance with laws, rules and regulations; (v) non-remittance

of collections to the National Treasury; (vi) overstatement of Inventory Accounts; and (vii)

non-restoration of the cash equivalent of unreleased checks.

6.5 COA revealed the department’s failure to collect some P251 million from the beneficiaries

of its flagship Small Enterprise Technology Upgrading Program (Setup), meant to

empower MSMEs. Receivable balances pertaining to Setup projects include P461.150

million past due accounts for over one to 10 years, of which P251.040 million reported

with uncollected refunds due to the inadequate/ineffective monitoring and evaluation on

the viability of projects.

6.6 Termination of contract agreements by various beneficiaries was due to the following:

weak market demand, health problems of the owners, internal conflicts with the

organization, low sales and others which ultimately led to nonpayment of their obligation

to the government.

6.7 In its recommendation, the COA said the DOST should conduct a technology needs

assistance to evaluate the viability of the proposals, prior to approving them. “Include in

the selection criteria of prospective proponents the stability of proponent’s business and

its target markets to ensure returns on government investments and the attainment of the

objective of bringing science and technology for countryside development,” the report

said, adding that the department should also intensify its monitoring, after the release of

funds.

6.8 The COA’s opinion on the fairness of presentation and reliability of financial statements

of the OSEC, Advanced Science and Technology Institute, Philippine Atmospheric,

Geophysical and Astronomical Services Administration, Philippine Council for Industry,

Energy and Emerging Technology Research and Development, Philippine Institute of

Volcanology and Seismology, Philippine Nuclear Research Institute, Philippine Science

High School, Science Education Institute and Science and Technology Information

Institute remain “qualified” since 2014.

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TABLE 16

COA AUDITOR’S OPINIONS

Particulars 2014 2015 2016 2017 2018

OSEC Q Q Q Q Q

ASTI Q Q Q Q Q

FNRI UQ UQ Q Q Q

ITDI Q UQ UQ Q Q

NAST UQ UQ UQ Q Q

NRCP UQ Q UQ Q Q

PAGASA Q Q Q Q

PCHRD Q Q Q A Q

PCIEETRD Q Q Q Q Q

PIVS Q Q Q Q Q

PNRI Q Q Q Q Q

PSHS Q Q Q Q

SEI Q Q Q Q Q

STII Q Q Q Q Q

TAPI Q UQ Q Q Q

Auditor’s Opinions are as follows: unqualified (UQ), qualified (Q), adverse (A), and disclaimer of opinion (D) Source of basic data: COA Annual Audit Reports available at www.coa.gov.ph

6.9 After the Philippine Council for Health Research and Development received “adverse”

opinion in 2017 for the misstatements by P103.85 million or 15.4 % of its total assets,

resulting in over/under statements of the affected accounts, it was rendered a qualified

opinion in 2018.

6.10 The Food Nutrition and Research Institute, Industrial Technology Development Institute,

National Academy of Science and Technology, and the National Research Council of the

Philippines changed in opinion from “unqualified” to “qualified”.

REFERENCES:

Budget Expenditures and Sources of Financing (BESF) 2016-2020 COA Annual Audit Report (Latest available data in COA website) General Appropriations Act (GAA). FYs 2016-2019 National Expenditure Program (NEP) FYs 2016-2020 Release/Status of Disbursements available at www.dbm/gov.ph/e-Fund Statement of Allotment, Obligation, Disbursement and Balances available at www.dbm.gov.ph www.dost.gov.ph

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ANNEX 1. DOST ATTACHED AGENCIES

Agency Organizational Outcomes

Office of the Secretary Widespread benefits to Filipinos from scientific knowledge and cutting-edge technological innovations increased

Advanced Science and Technology Institute

Widespread benefits to Filipinos from scientific knowledge and ICT and microelectronics technologies increased

Food and Nutrition Research Institute

Widespread application to Filipinos of scientific knowledge and food and nutrition technologies increased

Forest Products Research & Development. Institute

Widespread benefits to Filipinos from scientific knowledge and forest-based product technological innovations increased

Industrial Technology Development Institute

Widespread benefits to Filipinos from scientific knowledge and technologies for industry productivity and competitiveness increased.

Metals Industry Research & Development Center

Widespread benefits to Filipinos from scientific knowledge and cutting-edge metals and engineering innovations increased

National Academy of Science and Technology

Widespread benefits to Filipinos from scientific knowledge and cutting-edge technological innovations by enhancing and fostering the policy environment for the development of Science and Technology

National Research Council of the Philippines

Problem-focused multi-disciplinary basic research, policy formulation and collaboration among Filipino researchers enhanced

Philippine Atmospheric, Geophysical, and Astronomical Services Administration

Extensive application by Filipinos of accurate and robust science-based weather-related information and services to enhance their safety and resilience to disaster risks

Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development

Widespread benefits to Filipinos from science-based know-how and tools for agricultural productivity increased

Philippine Council for Health Research and Development

Widespread benefits to Filipinos from scientific and technological innovations for healthcare increased

Philippine Council for Industry, Energy and Emerging Technology Research and Development

Widespread benefits to Filipinos from scientific knowledge and technological innovations for productivity and competitiveness increased

Philippine Institute of Volcanology & Seismology

Enhanced safety and resiliency of Filipinos to volcanic eruptions, earthquakes, tsunamis and other related hazards

Philippine Nuclear Research Institute

Widespread benefits to Filipinos from science-based R&D know-how and tools in safe and secure cutting-edge nuclear and radiation technologies increased

Philippine Science High School Competitiveness of Filipinos in science and engineering increased

Philippine Textile Research Institute

Widespread benefits to Filipinos from scientific knowledge and technological innovations for the productivity and competitiveness of textile, garment and allied industries and other institutions increased

Science Education Institute Competitiveness of Filipinos in science and engineering increased

Science and Information Technology Institute

Public science and technology awareness increased

Technology Application and Promotion Institute

Filipinos protecting and venturing for innovative and emerging technology-based projects increased

Source: 2018 National Expenditure Program

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Research and Development Institutes

The Advanced Science and Technology Institute (ASTI) is mandated to perform the following functions: scientific research

and development in the advanced fields of information and communications technology and microelectronics; undertake long-

term researches to strengthen and modernize science and technology infrastructure; conduct research and development works

in the advanced fields of studies including biotechnology and microelectronics; and complement the overall endeavor in the

scientific field with intensive activities in computer and information technologies.

The Food and Nutrition Research Institute (FNRI) undertakes researches that define the citizenry’s nutritional status, with

reference to the malnutrition problem, its causes and effects; develops and recommends policy options, strategies, programs and

projects for implementation by appropriate agencies; and diffuses knowledge and technologies in food and nutrition and provides

scientific and technology (S&T) services to relevant stakeholders.

The Forest Products Research and Development Institute (FPRDI) conducts applied research and development in secondary

and tertiary processing for the forest-based industry to generate information and technology which can improve the utility value

of wood and other forest products. The FPRDI also undertakes the transfer of completed researches directly to end-users or via

linkage units of other government agencies; undertakes technical services; and provides training programs.

The Industrial Technology Development Institute (ITDI) provides innovative technologies and services in the areas of food,

materials, chemicals, energy, biotechnology, environment and packaging to both private and government sectors with the highest

standards of quality and reliability, within our capabilities and resources according to customer and all applicable regulatory and

statutory requirements. The ITDI is also committed to continually improve the effectiveness of our QMS at all times in order to

meet customer satisfaction.

The Metals Industry Research and Development Center (MIRDC) provides both government and the private sector in the

metals and engineering industries with professional management and technical expertise on training of engineers and

technicians, information exchange, trade accreditation services, quality control and testing of metal products, research and

development, and business economics advisory services

The Philippine Nuclear Research Institute (PNRI) conducts R&D on application of radiation and nuclear materials, processes

and techniques in agriculture, food, health, nutrition and medicine and in industrial or commercial enterprises; undertakes the

transfer of research results to end-users including technical extension and training services; operates and maintains nuclear

research reactors and other radiation facilities; licenses and regulates activities relative to production, transfer and utilization of

nuclear and radioactive substances.

The Philippine Textile Research Institute (PTRI) performs the following functions: conduct applied research and development

for the textile industry sector; undertake the transfer of completed researchers to end-users or via linkage units of other

government agencies; and undertake technical services and provide training programs.

Service Institutes

The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) provides protection

against natural calamities and utilizes scientific knowledge as an effective instrument to insure the safety, well-being and

economic security of all the people, and for the promotion of national progress.

The Philippine Institute of Volcanology and Seismology (PHILVOCS) has the following strategic objectives: predict the

occurrence of volcanic eruptions and earthquakes and their related geotectonic phenomena; determine how eruptions and

earthquakes shall occur and also areas likely to be affected; generate sufficient data for forecasting volcanic eruptions and

earthquakes; mitigate hazards of volcanic activities through appropriate detection, forecast and warning system; formulate

appropriate disaster preparedness plans; exploit the positive aspects of volcanoes and volcanic terrains in furtherance of the

socio-economic development efforts of the government.

The Philippine Science High School (PSHS) is mandated to offer, on a free scholarship basis, a secondary course with special

emphasis on subjects pertaining to the sciences with the end in view of preparing its students for a science career.

The Science Education Institute (SEI) undertakes science education and training; administers scholarships, awards and grants;

undertakes science and technology manpower development; and formulates plans and establishes programs and projects for

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the promotions and development of science and technology education and training in coordination with the Department of

Education (DepEd), Commission on Higher Education (CHED) and other institutions of learning.

The Science and Technology Information Institute (STII) establishes a Science and Technology databank and library;

disseminates Science and Technology information; and undertakes training on Science and Technology information.

The Technology Application and Promotion Institute (TAPI) serves as implementing arm of DOST in promoting the

commercialization of technologies and marketing the services of the other operating units of the department. It provides grants

and/or venture financing assistance for new and emerging projects; administers the Invention Development Assistance Fund

(IDAF) and the Inventors Guarantee Fund (IGF) for assisting inventors for invention-related activities and commercialization of

inventions; assists technology generators, inventors, and researchers avail of the laboratories and other facilities of the Research

and Development Institutes including regional offices and other government agencies, offices and instrumentalities; accredits and

recognizes inventors’ associations throughout their activities.

Sectoral Planning Councils

The Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD)

formulates policies, plans, programs, projects, and strategies for science and technology development, in the agriculture, forestry,

aquatic and natural resources sectors. PCARRD programs and allocates government and external funds generated for R&D

efforts in the agriculture, forestry, marine and natural resources sectors; monitors R&D projects; and generates external funds

for its R&D activities.

The Philippine Council for Health Research and Development (PCHRD) formulates policies, plans, programs, projects, and

strategies for health S&T development; programs and allocates government and external funds for R&D; monitors R&D projects;

and generates external funds.

The Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEETRD) performs

the following functions to develop national R&D competence in strategic areas of industry, energy and emerging technology:

formulate national policies, programs and implementing strategies for advanced science industry and energy sectors; program

and allocate government and other external funds earmarked for advanced science, industry and energy sectors; provide the

mechanism for assessment, evaluation and monitoring of R&D programs and updating of the national R&D plan; develop and

implement resource generating strategies to implement and sustain programs for the sectors; provide support for the development

of institutions and R&D human resource pool; establish, develop and maintain local and international technical cooperation and

linkages; develop and implement programs for the optimal utilization, transfer, and commercialization of technologies and other

research outputs; and establish, develop, and maintain an effective system for the acquisition and dissemination of research

information.

Advisory Bodies

The National Academy of Science and Technology (NAST) recognizes outstanding achievements in science and technology

as well as provides meaningful incentives to those engaged in scientific and technological researches and advises the President

and the Cabinet on matters related to science and technology. NAST engages in projects and programs designed to recognize

outstanding achievements in science; promotes scientific productivity; and embarks on programs traditionally and internationally

expected of an academy of science.

The National Research Council of the Philippines (NRCP) promotes and supports fundamental or basic research and

comprehensive research programs. It promotes cooperation in research for continuing total improvement of the research

capability of individual or group scientists; provides advice to the government on problems and issues of national interest;

promotes scientific and technological culture in all sectors of society; and fosters linkages with local and international scientific

organizations for enhanced cooperation in the development of information.