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Philippine Performance-Informed
Budgeting System
Presentation for 11th Annual OECD SBOM
December 17, 2015, Bangkok, Thaila...
2
Pillar 3: Measuring Agency Performance
OPIF
To provide performance information in the budget
process for monitoring, rep...
3
Significance of OPIF as a Budget Reform
Focus=
Outcomes
/Outputs
Targets set in
indicators
To some extent,
performance
i...
Sectoral Goals
Organizational
Outcomes
MFOs
P/A/Ps
Societal Goal
Why
What
and
Who
How
Societal benefits from the
sectoral ...
5
II. Shift to A Performance-Informed Budget (PIB)
in 2014
Department of Education
A. Office of the Secretary
6
STRATEGIC OBJECTIVES
MANDATE
The State shall protect and promote the ...
New Appropriations, by Program/Project
7
------------------------------------------------
--------------------------------...
Inter-Agency Task Force on Harmonization of National Government
Performance Monitoring, Information and Reporting Systems
...
Strategic Performance Management System (Individual) (CSC)
Organizational Outcomes
Good
Governance
and Anti-
Corruption
Hu...
Performance-Based Bonus
(PBB) – top-up bonus based
on individual’s contribution to
accomplishment of Department
targets
Pe...
Key Features of PBB
 Performance targets using MFO PIs contained in Budget
presented to Congress
 Good Governance condit...
Eligibility Criteria for PBB
Achieve at least 90% for each target under MFO
Achieve at least 90% for each target agreed ...
15
Key Gains & Lessons Learned*
• PBIS is improving management practices in target setting,
performance appraisal, teamwor...
IV. Monitoring the PIB during Budget
Execution
 Budget Execution Documents (BEDs) vs.
Budget and Financial Accountability...
17
BEDs BFARs
BED No. 1
Financial Plan
(FP)
FAR No. 1 Statement of Appropriations,
Allotments, Obligations, Disbursements ...
Way Forward
Creation of an MFO/PI
Register to track performance
Next phase of PIB: Program
Expenditure Classification
(P...
Thank you!
19
Philippine performance-informed budgeting system, Department of budget and management, Philippines
Philippine performance-informed budgeting system, Department of budget and management, Philippines
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Philippine performance-informed budgeting system, Department of budget and management, Philippines

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Presentation by the Department of Budget and Management, Philippines, 11th OECD-Asian Senior Budget Officials Annual Meeting, Bangkok, Thailand, 17-18 December 2015.

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Philippine performance-informed budgeting system, Department of budget and management, Philippines

  1. 1. Philippine Performance-Informed Budgeting System Presentation for 11th Annual OECD SBOM December 17, 2015, Bangkok, Thailand by Republic of the Philippines Department of Budget and Management
  2. 2. 2 Pillar 3: Measuring Agency Performance OPIF To provide performance information in the budget process for monitoring, reporting and evaluation of MFOs accomplishment to guide funding allocations To link organizational performance with individual/personnel performance and promote better performance management Two Dimensions Accountability Framework Performance Framework
  3. 3. 3 Significance of OPIF as a Budget Reform Focus= Outcomes /Outputs Targets set in indicators To some extent, performance information used in allocating budget Focus on results Now with OPIF
  4. 4. Sectoral Goals Organizational Outcomes MFOs P/A/Ps Societal Goal Why What and Who How Societal benefits from the sectoral changes Longer term benefits in the sector from organizational changes Concrete short to medium term benefits to clients and community Groups of outputs (goods and services) provided to external clients to achieve a common outcome Activities or integrated group of activities undertaken to realize the outputs and outcomes Logframe: Framework for MFOs & PIs
  5. 5. 5 II. Shift to A Performance-Informed Budget (PIB) in 2014
  6. 6. Department of Education A. Office of the Secretary 6 STRATEGIC OBJECTIVES MANDATE The State shall protect and promote the right of all citizen to quality education at all levels and shall take appropriate steps to make such education accessible to all. VISION We dream of Filipinos who passionately love their country and whose values and competencies enable them to realize their full potential and contribute meaningfully to building the nation. As a learner-centered public institution, the DepEd continuously improves itself to better serve its stakeholders. MISSION To protect and promote the right of every Filipino to quality, equitable, culture-based and complete basic education where: 1. Students learn in a child-friendly, gender-sensitive, safe and motivating environment 2. Teachers facilitate learning and constantly nurture every learner 3. Administrators and staff, as stewards of the institution, ensure an enabling and KEY RESULT AREA responsibility for developing life-long learners Poverty reduction and empowerment of the poor and the vulnerable SECTOR OUTCOME Equitable access to adequate quality societal services and assets supportive environment for effective learning to happen 4. Family, community and other stakeholders are actively engaged and share ORGANIZATIONAL OUTCOME Improved access to quality basic education
  7. 7. New Appropriations, by Program/Project 7 ------------------------------------------------ ------------------------------------------------ Current Operating Expenditures Personnel Services Maintenance and Other Operating Expenses Capital Outlays Total PROGRAM(S) 100000000 General Administration and Support 200000000 Support to Operations 300000000 Operations  MFO 1: Basic Education Policy Services  MFO 2: Basic Education Services  MFO 3: Regulatory and Developmental Services for Private Schools Total, Program(s) TOTAL NEW APPROPRIATIONS P 6,344,839,000 P 2,123,456,000 P 400,000,000 P 8,868,295,000 2,130,373,000 3,503,969,000 69,500,000 5,703,842,000 185,855,788,000 28,971,602,000 51,324,693,000 266,152,083,000 ----------------------- ----------------------- ------------------- ------------------------ 76,844,000 248,232,000 325,076,000 185,778,944,000 21,276,300,000 51,324,693,000 258,379,937,000 7,447,070,000 7,447,070,000 ----------------------- ----------------------- ------------------- ------------------------ 194,331,000,000 34,599,027,000 51,794,193,000 280,724,220,000 ----------------------- ----------------------- ------------------- ------------------------ P194,331,000,000 P34,599,027,000 P51,794,193,000 P280,724,220,000
  8. 8. Inter-Agency Task Force on Harmonization of National Government Performance Monitoring, Information and Reporting Systems (Administrative Order No. 25, s. 2011) NEDA DOF OP DBM PMS Government Oversight Partners: Task Force Members: GCG CHED Technical Secretariat: COA Ombudsman NCCCESBCSC III. OPIF as a Performance Management System
  9. 9. Strategic Performance Management System (Individual) (CSC) Organizational Outcomes Good Governance and Anti- Corruption Human Development & Poverty Reduction Economic Development Security, Justice, and Peace Climate Change Adaptation Societal Goals/Outcomes Sectoral Goals/Outcomes Financial Stewardship Internal Process Client/Customer Satisfaction Leadership, Learning and Growth Major Final Outputs (“Client-oriented” Results) STR (PMS) SONA Technical Report/ SER (NEDA) Socio Economic Report PPARC (Cabinet Clusters) Priority Program Accountability Report Card MARC- I MFO Accountability Report Card MARC- II (Internal to agency) Management Accountability Report Card Results-Based Performance Management System To quality for PBB, agencies must meet at least 90% of PPARC and MARC-I, and satisfy all MARC-II (GG conditions)
  10. 10. Performance-Based Bonus (PBB) – top-up bonus based on individual’s contribution to accomplishment of Department targets Performance-Based Incentive System (PBIS) PBB PEI Productivity Enhancement Incentive (PEI) – across-the- board bonus per employee Source: AO 25 task Force, 2012
  11. 11. Key Features of PBB  Performance targets using MFO PIs contained in Budget presented to Congress  Good Governance conditions • Transparency Seal, Procurement Compliance, Citizen Charter, submission of statement of assets & liabilities  Provide Department Heads handle to align system of performance assessment to attached agencies & organizational units  Two-step system of ranking of delivery units and personnel: set group eligibility before individual eligibility  Normalization via forced ranking 13
  12. 12. Eligibility Criteria for PBB Achieve at least 90% for each target under MFO Achieve at least 90% for each target agreed with President Meet 100% of good governance conditions set by AO 25 Task Force Implement two-stage ranking 14
  13. 13. 15 Key Gains & Lessons Learned* • PBIS is improving management practices in target setting, performance appraisal, teamwork. • Group ranking good for teamwork; 2 stage ranking to avoid free-riding, & reward good performance. • PBIS has improved compliance to governance standards (Transparency Seal, Philgeps, ARTA, SALN). • Need to matter more to compensation, especially to managers  embed in salary adjustment • Clear and measurable standards for validation, and timely and accurate information, needed. • Study impact on employee morale & performance *WB Assessment of PBB based on survey of 1,500 civil servants , June 2014
  14. 14. IV. Monitoring the PIB during Budget Execution  Budget Execution Documents (BEDs) vs. Budget and Financial Accountability Reports (BFARs)  Account Management Teams/ Full-Time Delivery Units  Report to Cabinet and the President  Performance-Based Bonus 16 Monitoring Systems
  15. 15. 17 BEDs BFARs BED No. 1 Financial Plan (FP) FAR No. 1 Statement of Appropriations, Allotments, Obligations, Disbursements and Balances (SAAODB) FAR No. 1-A Summary of Appropriations, Allotments, Obligations, Disbursements and Balances by Object of Expenditures (SAAODBOE) FAR No. 1-B List of Allotments and Sub- Allotments (LASA) BED No. 2 Physical Plan (PP) BAR No. 1 Quarterly Physical Report of Operations (QPRO) BED No. 3 Monthly Disbursement Program (MDP) FAR No. 4 Monthly Report of Disbursements (MRD) BEDs vs. BFARs
  16. 16. Way Forward Creation of an MFO/PI Register to track performance Next phase of PIB: Program Expenditure Classification (PREXC) Strengthen monitoring and evaluation 18
  17. 17. Thank you! 19

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