PFM NEWSLETTER OCTOBER 2012

A sound public financial management system for effective, efficient and economical delivery of public services.

FAST FACTS

20 Number of IT-based information systems for PFM in oversight and line agencies

95% Percentage of surveyed government financial managers and staff (611 out of the 645) said that the GIFMIS will benefit their agency

55 Executive Order No. 55 was signed on September 6, 2011 directing the integration and automation of government financial management systems

About Philippine Public Financial Management

The Public Financial Management (PFM) Reform Program aims to improve efficiency, accountability and transparency in public fund use in order to ensure the direct, immediate, substantial and economical delivery of public services especially to the poor.

The Program implements the key strategies of the Philippine PFM Reform Roadmap: Towards Improved Accountability and Transparency (2011-2016), a comprehensive reform agenda that seeks to clarify, simplify, improve and harmonize the government’s financial management processes and information systems. The integrated systems will cover all transactions of government and apply uniformly to all government agencies.

Executive Order No. 55 signed by President Benigno S. Aquino on September 6, 2011 authorizes the PFM Committee composed of the Commission on Audit (COA), Department of Budget and Management (DBM), Department of Finance (DOF) and Bureau of Treasury

National Payroll System

EYE ON IT

Current Industry Trends

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SOFTWARE

Monthly Picks

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This Month’s Q&A

Q: What is GHRIS and NPS

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focus

PFM in Focus . . . . . . . . . . . . . 2 FAQs . . . . . . . . . . . . . . . . . . . 3 GIFMIS Readiness Survey. . .4

Digitization of Government

Financial Systems Gains Momentum COA, DBM, DOF and Treasury Drives the Philippine Public Finance Reforms

The Philippine Government’s reform drive to digitize and simplify financial systems gained strong momentum with the completion of the key priority areas of the Public Financial Management (PFM) roadmap presented by the PFM Committee during the Tagaytay 5 workshop held on September 12-14.

The PFM Committee is a partnership of oversight agencies,

COA, DBM, DoF and Treasury, authorized under EO 55 to establish a seamless GIFMIS by 2016 and implement the PFM roadmap in the next five years.

Attended by over 60 government executives and financial managers from COA, DOF, DBM, DPWH, DSWD, DOH and DepEd, the workshop reported on accomplishments such as

WHAT’S NEW

To view the video of Juan go to http://youtu.be/0sgoz1_9Z1Y

For more information and program updates you may access the website at pfm.gov.ph.

Continued in page 3

October 2012

iKnow

PFM NEWSLETTER OCTOBER 2012 PAGE 2 OF 4

PFM In focus

The Public Financial Management (PFM) Reform Reform Program aims to improve efficiency, accountability and transparency in public fund use in order to ensure the direct, immediate, substantial and economical delivery of public services especially to the poor.

The Program implements the key strategies of the Philippine PFM Reform Roadmap: Towards Improved Accountability and Transparency (2011-2016), a comprehensive reform agenda that seeks to clarify, simplify, improve and harmonize the government’s financial management processes and information systems. The integrated systems will cover all transactions of government and apply uniformly to all government agencies.

Government Integrated Financial Management Information System (GIFMIS) – Develop a web-based application that will provide real time financial information to government

Improving Treasury Cash Management Operations (ITCMO) – Put in place a system of cash management that can keep daily cash balances of government at appropriate levels

Budget Reporting and Performance Standards (BRPS) – Harmonize and simplify data structures and apply a consistent set of budgeting and accounting rules and regulations for financial performance reporting.

Liability management (LM) - Develop a system for recording and reporting liabilities to better manage NGs financial exposure

Accounting and Auditing Reforms (AAR) - Harmonize accounting and auditing rules with international standards and strengthen participatory audit of programs and projects

Capacity Building (CB) - Support the various policy reform, business process and system improvements through training and learning, communications and advocacy.

Executive Order No. 55 signed by President Benigno S. Aquino on September 6, 2011 authorizes the PFM Committee composed of the Commission on Audit (COA), Department of Budget and Management (DBM), Department of Finance (DOF) and Bureau of Treasury (BTr) to oversee and coordinate the integration and automation of government financial systems, and implementation of the PFM roadmap.

“The PFM Reform Roadmap is a master plan to support the Aquino Administration’s priority development and governance objective,” said PFM Chair Commissioner Juanito Espino, Jr.

KEY PROJECTS:

PFM Governance Structure PFM Principals

Chairperson Ma. Gracia M. Pulido Tan (COA) Secretary Florencio B. Abad (DBM) Secretary Cesar V. Purisima (DOF)

PFM Committee Chair Commissioner Juanito G. Espino, Jr. (COA)

Members: 1. Undersecretary Gil S. Beltran (DOF) 2. Undersecretary Richard E. Moya (DBM) 3. Undersecretary Laura B. Pascua (DBM) 4. Treasurer Roberto B. Tan (BTr) 5. Deputy Treasurer Eduardo S. Mendiola (BTr) 6. Assistant Commissioner Arcadio B. Cuenco, Jr. (COA) 7. Assistant Secretary Ma. Teresa S. Habitan (DOF)

PFM NEWSLETTER OCTOBER 2012 PAGE 3 OF 4

FAQs Q: What is GIFMIS?

A: The Government Integrated Financial Management Information System (GIFMIS) is a web-based application for budget management and accounting that will be implemented by the Philippine Government to improve PFM processes, enhance greater accountability and transparency across National Government Agencies. GIFMIS is designed to make use of ICT to help the government plan and use its financial resources more efficiently and effectively.

Q: Why implement a GIFMIS??

A: The Philippine PFM is beset with poor reporting, planning and implementation due to the fragmentation of oversight agencies that complicate the system of budget reporting, transparency, predictability and control in budget execution, internal audit and payroll.

Q: What is the scope of GIFMIS?

A: GIFMIS will cover the entire financial management cycle:

Budget preparation Fund allocation and release Commitment management Budget execution:

Expenditure management and Revenue Data management

Cash management Electronic payment

management Accounting and reporting Audit management Human resource

management National payroll system

harmonization of the chart of accounts, business process mapping studies for the development of the Government Integrated Financial Management Information System (GIFMIS), treasury single account, and national payroll system. The key reforms will ensure full public disclosure and proper management of public funds by providing real time financial information on government taxes, expenses and debt to all government and the public.

The accomplishments affirm the direction of the reforms. “The PFM Reform Roadmap is a master plan to support the Aquino Administration’s priority development and governance objectives. By improving the government-wide financial systems, efficiency, accountability, and transparency in the use of public funds can be achieved for better service delivery to the people,” said COA Commissioner Juanito G. Espino, Jr., Chair of the PFM Committee, in his workshop opening message.

Budget Secretary Florencio B. Abad highlighted the great strides by far charted in accelerating the reform

"As public servants, we are tasked to establish fiscal management practices that work for the benefit of the ordinary Filipino,” – DBM Secretary Florencio B. Abad, Jr.

and the formidable task that still lies ahead. “Our task now is to ensure that this same momentum will be sustained and guided by the reform roadmap, as well as the critical path to GIFMIS. As public servants, we are tasked to establish fiscal management practices that work for the benefit of the ordinary Filipino,” the Budget Chief said.

COA Chairperson Ma. Gracia Tan lauded the efforts of the agencies and reaffirmed the commitment of COA in thrusting through with all the reforms. “I underscore the depth of commitment of COA to PFM and will continue to give full attention so all things will push through and materialize”, said Chairperson Tan. She anticipates continuous discussions among the principals of the oversight agencies in the coming days.

AusAID’s Minister-Counsellor Octavia Borthwick expressed Australia’s continuous support to the Aquino administration’s agenda on accountability and participation. “I anticipate that the Philippines will have one of the most successful PFM systems in the region,” she said.

Digitization… from page 1

PFM Chair Commissioner Espino presented the highlights and agreements of the Tagaytay 5 planning workshop to the Principals emphasizing the need for resources and continued support to ensure the success of the PFM reforms.

PFM NEWSLETTER OCTOBER 2012 PAGE 4 OF 4

FOR MORE INFORMATION

Public Financial Management - Program Management Office (PFM-PMO)

Telephone No.: 735-1991; 490-1000 loc. 2500

Telefax: 735-4929

Email Address: pmo@pfm.gov.ph

Address: 2/F DBM Boncodin Hall, Gen. Solano St., San Miguel, Manila

Website: pfm.gov.ph

Upcoming Events • Unified Account Code Structure (UACS) Validation Workshop

November 5-6 | 8.30 AM -7.00 PM | Holiday Inn Clark Field, Pampanga November 14 | 9.00 AM – 3.30 PM | DBM, Manila Objective: Test and validate the UACS to ensure that it meets departmental needs for harmonized financial reporting

• PFM Committee Regular Meeting November 22 | 9.30 – 12.30 PM | Commission Proper, Commonwealth, Ave., Quezon City

• PFMP Steering Committee Meeting November 28 • The Greater than Leadership in Financial Management Information Systems (GTL FMIS) Course (Albania, Cambodia, Indonesia, Vietnam, Philippines)

December 9 – 15 | Seoul, Korea

Objective: The program will help country teams involved in ongoing or planned

FMIS reforms manage the complex process of implementing these reforms.

Participating

GIFMIS will improve transparency and

accountability in their agencies

ARE YOU READY FOR GIFMIS? 645 respondents (246 Managers and 381 Finance staff) from national government agencies participated in a change readiness survey. Overall, there was a strong agreement among managers and staff on the survey items.

Senior executives/managers have communicated and integrated changes in the past to the overall vision of

their agency

High need of both the managers and technical groups for proper training to

adapt to the new system

GIFMIS is beneficial to government agencies

High confidence that GIFMIS will improve job efficiency and effectiveness of government managers

and technical staff

Majority feel that senior executives and managers are personally committed to the GIFMIS project. Notably, about 20% of the respondents are undecided responding “Neither Agree or Disagree”