GRAND MEN SENG HOTEL DAVAO CITY OCTOBER 15-18, 2008

GRAND MEN SENG HOTELDAVAO CITY

OCTOBER 15-18, 2008

ASSOCIATION OF GOVERNMENT ASSOCIATION OF GOVERNMENT ACCOUNTANTS OF THE ACCOUNTANTS OF THE

PHILIPPINES (AGAP) PHILIPPINES (AGAP) CONVENTIONCONVENTION

AGAP CONVENTIONAGAP CONVENTIONGRAND MEN SENG HOTELGRAND MEN SENG HOTEL

DAVAO CITYDAVAO CITYOCTOBER 16, 2008OCTOBER 16, 2008

GOOD GOVERNANCE AND GOOD GOVERNANCE AND FINANCIAL REFORMS: FINANCIAL REFORMS: THE DSWD EXAMPLETHE DSWD EXAMPLE

FINANCIAL REFORMS FOR FINANCIAL REFORMS FOR GOOD GOVERNANCE: THE GOOD GOVERNANCE: THE

DSWD EXPERIENCEDSWD EXPERIENCE

GOOD GOVERNANCE AND GOOD GOVERNANCE AND FINANCIAL REFORMS: THE FINANCIAL REFORMS: THE

DSWD EXAMPLEDSWD EXAMPLE



GOVERNANCEGOVERNANCE ACCORDING TO UN DEFINITION IS ACCORDING TO UN DEFINITION IS THE EXERCISE OF POLITICAL, ECONOMIC AND THE EXERCISE OF POLITICAL, ECONOMIC AND ADMINISTRATIVE AUTHORITY TO MANAGE A ADMINISTRATIVE AUTHORITY TO MANAGE A NATION’S AFFAIRS. NATION’S AFFAIRS. GOOD GOVERNANCEGOOD GOVERNANCE IS, IS, THEREFORE, A SUBSET OF GOVERNANCE THEREFORE, A SUBSET OF GOVERNANCE WHEREIN PUBLIC RESOURCES AND PROBLEMS WHEREIN PUBLIC RESOURCES AND PROBLEMS ARE MANAGED EFFECTIVELY, EFFICIENTLY AND ARE MANAGED EFFECTIVELY, EFFICIENTLY AND IN RESPONSE TO CRITICAL NEEDS OF SOCIETY.IN RESPONSE TO CRITICAL NEEDS OF SOCIETY.



REFORMSREFORMS ARE INITIATIVES INTENDED TO ARE INITIATIVES INTENDED TO CHANGE/ENHANCE EXISTING CHANGE/ENHANCE EXISTING ARRANGEMENTS OF MATTERS TO ARRANGEMENTS OF MATTERS TO IMPROVE PERFORMANCE AND PURSUE IMPROVE PERFORMANCE AND PURSUE IDEALS OF GOOD GOVERNANCE.IDEALS OF GOOD GOVERNANCE.

FINANCIAL REFORMS FOR FINANCIAL REFORMS FOR GOOD GOVERNANCE: THE GOOD GOVERNANCE: THE

DSWD EXPERIENCEDSWD EXPERIENCE



RATIONALE FOR THE REFORM:RATIONALE FOR THE REFORM:

1.1. The need to redefine/clarify the role of The need to redefine/clarify the role of financial management under the new financial management under the new paradigm of governance and in these paradigm of governance and in these times of digital technology times of digital technology

2.2. The need to modernize FM to improve the The need to modernize FM to improve the efficiency and quality of financial reports efficiency and quality of financial reports for both internal and external clientsfor both internal and external clients

FINANCIAL REFORMS FOR FINANCIAL REFORMS FOR GOOD GOVERNANCE : THE GOOD GOVERNANCE : THE


RATIONALE FOR THE REFORM:RATIONALE FOR THE REFORM:

3.3. The need to develop FM information The need to develop FM information system to assist management and all system to assist management and all concerned in decision-making process concerned in decision-making process and strategic planning by providing them and strategic planning by providing them with timely and quality information with timely and quality information

4.4. The need and enhance knowledge and The need and enhance knowledge and skills of FM staff in the use of IT toolsskills of FM staff in the use of IT tools



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FINANCIAL REFORMS FOR FINANCIAL REFORMS FOR GOOD GOVERNANCE : THE GOOD GOVERNANCE : THE


REFORM 1: INTRODUCTION OF A REFORM 1: INTRODUCTION OF A CONCEPTUAL FRAMEWORK AND VISION CONCEPTUAL FRAMEWORK AND VISION FOR FINANCIAL MANAGEMENTFOR FINANCIAL MANAGEMENT

1.1. Strategic partner of line and staff bureaus Strategic partner of line and staff bureaus and services in delivering the desired and services in delivering the desired organizational outcome. organizational outcome.

2.2. Financial management advisorFinancial management advisor3. Catalyst of change3. Catalyst of change4. ICT champion4. ICT champion5. Risk management specialist5. Risk management specialist

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ORGANIZATIONAL ORGANIZATIONAL PERFORMANCE INDICATORS PERFORMANCE INDICATORS

FRAMEWORK (OPIF)FRAMEWORK (OPIF)

FM REFORM 2: INTERNALIZING OPIF FM REFORM 2: INTERNALIZING OPIF FRAMEWORK TO CLARIFY OR FRAMEWORK TO CLARIFY OR REINFORCE ROLE OF FMREINFORCE ROLE OF FM

• DSWD RECOGNIZES OPIF AS THE DSWD RECOGNIZES OPIF AS THE ACCOUNTABILITY FRAMEWORK OF ACCOUNTABILITY FRAMEWORK OF THE GOVERNMENT THE GOVERNMENT

• MECHANISM WHERE ALL GOVERNMENT MECHANISM WHERE ALL GOVERNMENT AGENCIES AND PERSONNEL CAN BE BOUND AGENCIES AND PERSONNEL CAN BE BOUND TOGETHER TOWARDS ACHIEVING A COMMON TOGETHER TOWARDS ACHIEVING A COMMON ASPIRATION OF OUR SOCIETYASPIRATION OF OUR SOCIETY

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OPIF HOLDS DSWD ACCOUNTABLE OPIF HOLDS DSWD ACCOUNTABLE TO THE PEOPLE FOR ITS TO THE PEOPLE FOR ITS COMMITMENT FOR IMPROVED COMMITMENT FOR IMPROVED OUTCOMES OF SWD SERVICESOUTCOMES OF SWD SERVICES

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• POVERTY REDUCTIONPOVERTY REDUCTION• IMPROVEMENT OF HUMAN IMPROVEMENT OF HUMAN DEVELOPMENT INDEXDEVELOPMENT INDEX• IMPROVEMENT OF QUALITY OF LIFEIMPROVEMENT OF QUALITY OF LIFE

SOCIETAL GOALSSOCIETAL GOALS



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• SOCIAL SERVICES SECTOR:SOCIAL SERVICES SECTOR:DEPED, DOH, DSWD, DOLE, DEPED, DOH, DSWD, DOLE,

HOUSING AGENCIES HOUSING AGENCIES

• SECTORAL GOAL/OUTCOME: SECTORAL GOAL/OUTCOME: THE IMPROVEMENT OF WELL-THE IMPROVEMENT OF WELL-

BEING AND THE CAPACITY OF BEING AND THE CAPACITY OF THE THE COUNTRY’S HUMAN COUNTRY’S HUMAN RESOURCESRESOURCES

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DSWD:DSWD: IMPROVED CAPACITY AND IMPROVED CAPACITY AND INCREASED OPPORTUNITIES FOR INCREASED OPPORTUNITIES FOR THE POOR, VULNERABLE AND THE POOR, VULNERABLE AND DISADVANTAGED SECTOR OF THE DISADVANTAGED SECTOR OF THE

COUNTRY COUNTRY

ORGANIZATIONAL GOALSORGANIZATIONAL GOALS



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MAJOR FINAL OUTPUTS MAJOR FINAL OUTPUTS (MFOs)(MFOs)

1. SERVICES RELATING TO THE FORMULATION AND ADVOCACY OF POLICIES, PLANS AND PROGRAMS

2. STANDARDS SETTING, LICENSING AND ACCREDITATION SERVICES

3. PROVISION OF SUPPORT SERVICES AND TECHNICAL ASSISTANCE TO INTERMEDIARIES

4. PROVISION OF SERVICES FOR COMMUNITY AND CENTER BASED CLIENTS

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FM REFORM 3FM REFORM 3: Semi-automation of the : Semi-automation of the financial management process in the financial management process in the Central Office and three Regional Offices of Central Office and three Regional Offices of DSWD under its Computerized Accounting DSWD under its Computerized Accounting System (CAS) under the supervision of System (CAS) under the supervision of COA.COA.

FM REFORM 4: Implementation of E-NGAS FM REFORM 4: Implementation of E-NGAS in the CO and rollout in 3 FOs including in the CO and rollout in 3 FOs including capability building of FM staffcapability building of FM staff

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FM REFORM 5FM REFORM 5: INTRODUCTION OF WORK : INTRODUCTION OF WORK AND FINANCIAL PLANNING SESSION AND FINANCIAL PLANNING SESSION DEPARTMENT WIDEDEPARTMENT WIDEA PROGRAMMING SESSION TO DETERMINE A PROGRAMMING SESSION TO DETERMINE AVAILABILITY OF DEPT APPROVED BUDGET AVAILABILITY OF DEPT APPROVED BUDGET TO PRIORITY PROGRAMS AND PROJECTS OF TO PRIORITY PROGRAMS AND PROJECTS OF THE DEPT INCLUDING OTHER THE DEPT INCLUDING OTHER COMMITMENTS OF THE DEPTCOMMITMENTS OF THE DEPT

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FM REFORM 6FM REFORM 6: : CONDUCT OF ANNUAL FM CONDUCT OF ANNUAL FM CONFERENCE AND REGULAR CONFERENCE AND REGULAR CONSULTATION WORKSHOPS TO CONSULTATION WORKSHOPS TO RECONCILE FM DATA/REPORTS, CLARIFY RECONCILE FM DATA/REPORTS, CLARIFY ISSUES AND ISSUANCES THAT AFFECTS ISSUES AND ISSUANCES THAT AFFECTS PERFORMANCE OF OFFICESPERFORMANCE OF OFFICES

FM REFORM 7: FM REFORM 7: DEVOLUTION OF FUND DEVOLUTION OF FUND CONTROL FUNCTION TO RESPECTIVE CONTROL FUNCTION TO RESPECTIVE HEADS OF OFFICESHEADS OF OFFICES

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FM REFORM 8FM REFORM 8: INSTALLATION OF CASH : INSTALLATION OF CASH ALLOCATION/UTILIZATION ALLOCATION/UTILIZATION MONITORING SYSTEM (CAUMS)MONITORING SYSTEM (CAUMS)

AN INTERNALLY DEVELOPED AN INTERNALLY DEVELOPED COMPUTERIZED SYSTEM USED TO COMPUTERIZED SYSTEM USED TO MONITOR CASH BALANCES ON A DAILY MONITOR CASH BALANCES ON A DAILY BASISBASIS

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FM REFORM 9: Procurement Systems Improvement FM REFORM 9: Procurement Systems Improvement and Reforms Including Capability Building for and Reforms Including Capability Building for Procurement StaffProcurement Staff

This involves the strengthening of linkages under the This involves the strengthening of linkages under the planning-budgeting-payment cycle in procurement; planning-budgeting-payment cycle in procurement; streamlining/simplification of the procurement process; streamlining/simplification of the procurement process; tracking and monitoring system; automation of procurement tracking and monitoring system; automation of procurement system particularly records and files, registry and other system particularly records and files, registry and other databases covered in the bidding process; price monitoring databases covered in the bidding process; price monitoring and evaluation system; development of e-procurement, and, and evaluation system; development of e-procurement, and, training of procurement stafftraining of procurement staff

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FM REFORM 10: Other MIS/IT Improvement FM REFORM 10: Other MIS/IT Improvement ProgramProgram

To enhance the financial management information system, To enhance the financial management information system, parallel computerization projects will be pursued. This will parallel computerization projects will be pursued. This will include Human Resource Information Management System include Human Resource Information Management System and Physical Assets Management Information System which and Physical Assets Management Information System which shall interface with the financial management information shall interface with the financial management information system and make efficient personnel transactions and tracking system and make efficient personnel transactions and tracking and maintenance of the Department’s physical assets, among and maintenance of the Department’s physical assets, among others.others.

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FM REFORM 11: STRENGTHENING OF FM FM REFORM 11: STRENGTHENING OF FM ORGANIZATIONORGANIZATION

FM STRUCTURE NEEDED TO PURSUE FM FM STRUCTURE NEEDED TO PURSUE FM FRAMEWORK AND REFORMS FRAMEWORK AND REFORMS INCORPORATED IN THE RATIONALIZATON INCORPORATED IN THE RATIONALIZATON AND STREAMLINING PLAN OF THE DSWD AND STREAMLINING PLAN OF THE DSWD APPROVED BY DBM.APPROVED BY DBM.



FM REFORM 12:IMPLEMENTATION OF FM REFORM 12:IMPLEMENTATION OF PERFORMANCE CONTRACTING SYSTEMPERFORMANCE CONTRACTING SYSTEMALL DIRECTORS OF BUREAUS, SERVICES, REGIONAL OFFICES ALL DIRECTORS OF BUREAUS, SERVICES, REGIONAL OFFICES ARE ACCOUNTABLE TO THE SECRETARY THROUGH A ARE ACCOUNTABLE TO THE SECRETARY THROUGH A PERFORMANCE CONTRACT. LIKEWISE, ALL DIVISION CHIEFS TO PERFORMANCE CONTRACT. LIKEWISE, ALL DIVISION CHIEFS TO THE DIRECTORS AND RANK AND FILE TO THE DIVISION CHIEF. THE DIRECTORS AND RANK AND FILE TO THE DIVISION CHIEF. THE PERFORMANCE CONTRACTING SYSTEM PROVIDES A THE PERFORMANCE CONTRACTING SYSTEM PROVIDES A STRONG MECHANISM FOR MAKING ALL OFFICIALS AND STRONG MECHANISM FOR MAKING ALL OFFICIALS AND EMPLOYEES ANSWERABLE TO THE SECRETARY OR TO THE EMPLOYEES ANSWERABLE TO THE SECRETARY OR TO THE PUBLIC OF THEIR PERFORMANCE AND FOR MONITORING AND PUBLIC OF THEIR PERFORMANCE AND FOR MONITORING AND SPOT CHECKING STATUS OF COMMITMENTS ANYTIME OF THE SPOT CHECKING STATUS OF COMMITMENTS ANYTIME OF THE YEAR TO ENABLE THEM TO PREPARE CATCH UP PLAN. YEAR TO ENABLE THEM TO PREPARE CATCH UP PLAN.



REFORM INITIATIVES IN THE PIPELINE:REFORM INITIATIVES IN THE PIPELINE:

1.1. CAPABILITY BUILDING OF DSWD STAFF ON CAPABILITY BUILDING OF DSWD STAFF ON PUBLIC FINANCIAL MANAGEMENT (PFM)– PUBLIC FINANCIAL MANAGEMENT (PFM)– AWAITING FINAL DRAFT OF PFM MANUAL TO BE AWAITING FINAL DRAFT OF PFM MANUAL TO BE USED IN TRAINING COURSE AT UPUSED IN TRAINING COURSE AT UP

2.2. CAPABILITY BUILDING OF INTERNAL AUDIT CAPABILITY BUILDING OF INTERNAL AUDIT STAFF UNDER PEGRSTAFF UNDER PEGR

3.3. MEDIUM TERM EXPENDITURE PLAN (MTEP) MEDIUM TERM EXPENDITURE PLAN (MTEP) 2009-2013. SUBMITTED TO DBCC FOR 2009-2013. SUBMITTED TO DBCC FOR APPROVALAPPROVAL

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OTHER COMMENDATIONS:OTHER COMMENDATIONS:

WB, UNICEF, EC AND OTHER IFIs HAVE WB, UNICEF, EC AND OTHER IFIs HAVE COMMENDED THE STRONG INTERNAL COMMENDED THE STRONG INTERNAL CONTROL IN DSWDCONTROL IN DSWD

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DECIDE TO BE PILLARS OF THE FUTURE.DECIDE TO BE PILLARS OF THE FUTURE.

CONTINUE THE REFORM PROCESS. CONTINUE THE REFORM PROCESS. DECIDE TO BE PILLARS OF GOOD DECIDE TO BE PILLARS OF GOOD GOVERNANCE.GOVERNANCE.

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THANK YOU! THANK YOU!

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PILLARS OF GOOD GOVERNANCE:PILLARS OF GOOD GOVERNANCE:

1. TRANSPARENCY.1. TRANSPARENCY. ENFORCEMENT OF PLANS, ENFORCEMENT OF PLANS, PROGRAMS, PROJECTS, SERVICES AND PROGRAMS, PROJECTS, SERVICES AND TRANSACTIONS ARE DONE CONSISTENT WITH TRANSACTIONS ARE DONE CONSISTENT WITH LAWS/FRAMEWORK, RULES, REGULATIONS. LAWS/FRAMEWORK, RULES, REGULATIONS.

INFORMATION ARE FREELY AVAILABLE, INFORMATION ARE FREELY AVAILABLE, ENOUGH AND ACCESSIBLE TO ALL CONCERNED ENOUGH AND ACCESSIBLE TO ALL CONCERNED AND PROVIDED IN EASILY UNDERSTANDABLE AND PROVIDED IN EASILY UNDERSTANDABLE FORMSFORMS

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2. 2. ACCOUNTABILITY.ACCOUNTABILITY. RESPONSIBILITY FOR RESPONSIBILITY FOR ACTIONS MADE ARE CLEAR AND THEY ARE ACTIONS MADE ARE CLEAR AND THEY ARE ANSWERABLE TO THE PUBLIC. IT MEANS THAT ANSWERABLE TO THE PUBLIC. IT MEANS THAT TANGIBLE OR PUNITIVE CONSEQUENCES EXIST TANGIBLE OR PUNITIVE CONSEQUENCES EXIST AND WILL BE ENFORCED FOR FRAUD OR AND WILL BE ENFORCED FOR FRAUD OR VIOLATIONS MADE.VIOLATIONS MADE.

TRANSACTIONS AND ACTIONS ARE CAPABLE TRANSACTIONS AND ACTIONS ARE CAPABLE OF EXPLAINING.OF EXPLAINING.

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3. HONESTY AND INTEGRITY.3. HONESTY AND INTEGRITY. TRANSACTIONS TRANSACTIONS AND ACTIONS MADE ARE ABOVE BOARD AND AND ACTIONS MADE ARE ABOVE BOARD AND POSSESS THE QUALITY OF ADHERENCE TO POSSESS THE QUALITY OF ADHERENCE TO HIGH MORAL AND PROFESSIONAL HIGH MORAL AND PROFESSIONAL STANDARDS. INTEGRITY ALSO CALLS THAT STANDARDS. INTEGRITY ALSO CALLS THAT EVERY OFFICIAL AND EMPLOYEES TRANSCEND EVERY OFFICIAL AND EMPLOYEES TRANSCEND BEYOND THE PERCEPTION OF MALPRACTICES.BEYOND THE PERCEPTION OF MALPRACTICES.

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4.EFFECTIVE AND EFFICIENT.4.EFFECTIVE AND EFFICIENT. STRUCTURE AND STRUCTURE AND PROCESSES PRODUCE RESULTS TO ACHIEVE PROCESSES PRODUCE RESULTS TO ACHIEVE DESIRED ORGANIZATIONAL OUTCOME WHILE DESIRED ORGANIZATIONAL OUTCOME WHILE MAKING THE BEST USE OF AVAILABLE MAKING THE BEST USE OF AVAILABLE RESOURCES.RESOURCES.

5.RESPONSIVE.5.RESPONSIVE. DSWD STRUCTURE, SERVICES DSWD STRUCTURE, SERVICES AND PROCESSES SERVES CLIENT WITHIN AND PROCESSES SERVES CLIENT WITHIN REASONABLE TIME FRAMEREASONABLE TIME FRAME

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DSWD EXAMPLEDSWD EXAMPLE7 HOW’S TO STRENGTHEN FM IN DSWD:7 HOW’S TO STRENGTHEN FM IN DSWD:

1.1. STRONG FOUNDATION ON PUBLIC FINANCIAL ACCOUNTING STRONG FOUNDATION ON PUBLIC FINANCIAL ACCOUNTING FOLLOWING ACCRUAL AND ACCOUNTING CONCEPTSFOLLOWING ACCRUAL AND ACCOUNTING CONCEPTS

2.2. APPRECIATION OF CURRENT EFFORTS ON PERFORMANCE CULTUREAPPRECIATION OF CURRENT EFFORTS ON PERFORMANCE CULTURE

3. ENHANCE KNOWLEDGE AND APPLICATION SKILLS OF FM IT TOOLS3. ENHANCE KNOWLEDGE AND APPLICATION SKILLS OF FM IT TOOLS

4. FULL UNDERSTANDING OF FUNDAMENTALS AND PROCESS OF 4. FULL UNDERSTANDING OF FUNDAMENTALS AND PROCESS OF STRATEGIC PLANNINGSTRATEGIC PLANNING

5. CRITICAL CONCERNS ON CASH PLANNING AND MANAGEMENT5. CRITICAL CONCERNS ON CASH PLANNING AND MANAGEMENT

6. DEVELOP FM INFORMATION SYSTEM6. DEVELOP FM INFORMATION SYSTEM

7. PRODUCTION AND UTILIZATION OF BUDGET OVERSIGHT DATA 7. PRODUCTION AND UTILIZATION OF BUDGET OVERSIGHT DATA REQUIREMENTS (SYNCHRONIZED WITH INTERNAL MANAGEMENT REQUIREMENTS (SYNCHRONIZED WITH INTERNAL MANAGEMENT REQUIREMENTS)REQUIREMENTS)

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Doing the first step is difficult.Doing the first step is difficult.But every worthy endeavor But every worthy endeavor is difficult.is difficult.IT IS NOT A MATTER OF TALENTIT IS NOT A MATTER OF TALENTBUT IT IS A MATTER OF PURPOSE.BUT IT IS A MATTER OF PURPOSE.““GREAT REFORM GREAT REFORM WAS NOT FOUNDED IN WEALTH,WAS NOT FOUNDED IN WEALTH, IT WAS FOUNDED IN THE IT WAS FOUNDED IN THE POWER OF ONE SOUL.”POWER OF ONE SOUL.”

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THERE ARE NO GREAT PEOPLE. THERE THERE ARE NO GREAT PEOPLE. THERE ARE ONLY GREAT CHALLENGES ARE ONLY GREAT CHALLENGES ORDINARY PEOPLE RESPONDS TO.ORDINARY PEOPLE RESPONDS TO.

INTEGRITY IS ESSENTIAL IF WE ARE TO INTEGRITY IS ESSENTIAL IF WE ARE TO COPE UP WITH LIFES DIFFICULTY.COPE UP WITH LIFES DIFFICULTY.

IT IS NOT POVERTY, IT IS NOT WEALTH IT IS NOT POVERTY, IT IS NOT WEALTH BUT IS THE HEART FOR NATION BUT IS THE HEART FOR NATION BUILDINGBUILDING

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GREAT CHALLENGES ARE GREAT PATH GREAT CHALLENGES ARE GREAT PATH FOR GREAT CHANGES.FOR GREAT CHANGES.

EVERY COUNTRY THAT GROWS STARTED EVERY COUNTRY THAT GROWS STARTED WITH DIFFICULTY.WITH DIFFICULTY.

EVERY THING WORTHY AND EXCELLENT EVERY THING WORTHY AND EXCELLENT IS DIFFICULT.IS DIFFICULT.

THE PURPOSE OF WORK IS TO GIVE THE PURPOSE OF WORK IS TO GIVE SIGNIFICANCE AND TO FULFILL YOUSIGNIFICANCE AND TO FULFILL YOU

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DECIDE TO BE A PILLAR OF THE FUTURE.DECIDE TO BE A PILLAR OF THE FUTURE.

BE A PILLAR OF GOOD GOVERNANCE.BE A PILLAR OF GOOD GOVERNANCE.

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TOGETHER WITH CONCERNED DSWD LINE BUREAUS/OFFICES, REDESIGNED/REVISED FORMS TO TOGETHER WITH CONCERNED DSWD LINE BUREAUS/OFFICES, REDESIGNED/REVISED FORMS TO EFFECTIVELY MONITOR PHYSICAL ACCOMPLISHMENTS AND PERFORMANCE INDICATORS IN EFFECTIVELY MONITOR PHYSICAL ACCOMPLISHMENTS AND PERFORMANCE INDICATORS IN CONSISTENCY WITH OPIF FRAMEWORK.CONSISTENCY WITH OPIF FRAMEWORK.

STRENGTHENED FMS AND ADMINISTRATIVE SERVICE COLLABORATION/LINKAGE ON PPE STRENGTHENED FMS AND ADMINISTRATIVE SERVICE COLLABORATION/LINKAGE ON PPE THROUGH STRENGTHENING CUSTODY AND RECORDING MECHANISM AND ACCOUNTABILITY THROUGH STRENGTHENING CUSTODY AND RECORDING MECHANISM AND ACCOUNTABILITY SYSTEM. CREATED COMMITTEES FOR THIS PURPOSE. AS A RESULT ACCOUNTING AND AS WERE SYSTEM. CREATED COMMITTEES FOR THIS PURPOSE. AS A RESULT ACCOUNTING AND AS WERE ABLE TO RECONCILE PPE INVENTORY WITH THE BOOKS OF ACCOUNTING. THE SAME MECHANISM ABLE TO RECONCILE PPE INVENTORY WITH THE BOOKS OF ACCOUNTING. THE SAME MECHANISM IS REPLICATED IN FOS.IS REPLICATED IN FOS.

INSTALLED MECHANISM TO RECONCILE CO RELEASES TO FOS AND FINANCIAL DATA AND INSTALLED MECHANISM TO RECONCILE CO RELEASES TO FOS AND FINANCIAL DATA AND RECORDS OF BOTH WHICH ACTIVITIY IS INCLUDED IN THE FINANCIAL MANAGEMENT RECORDS OF BOTH WHICH ACTIVITIY IS INCLUDED IN THE FINANCIAL MANAGEMENT CONFERENCE HELD EVERY JANUARY OF THE YEAR TO ENSURE EARLY SUBMISSION OF ANNUAL CONFERENCE HELD EVERY JANUARY OF THE YEAR TO ENSURE EARLY SUBMISSION OF ANNUAL REPORTSREPORTS

STRENGTHENED CAPABILITY/FLEXIBILITY OF FO DIRECTORS TO MANAGE CM FUNDS THROUGH STRENGTHENED CAPABILITY/FLEXIBILITY OF FO DIRECTORS TO MANAGE CM FUNDS THROUGH THE ISSUANCE OF A DEPARTMENT ORDER AUTHORIZING THE ADVANCE RELEASE OF CMF TO FO UP THE ISSUANCE OF A DEPARTMENT ORDER AUTHORIZING THE ADVANCE RELEASE OF CMF TO FO UP TO SECOND OR THIRD QUARTER REQUIREMENTS UPON RECEIPT OF THE DEPARTMENT OF ABM TO SECOND OR THIRD QUARTER REQUIREMENTS UPON RECEIPT OF THE DEPARTMENT OF ABM SUBJECT TO MIDTERM REVIEW .SUBJECT TO MIDTERM REVIEW .

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PERFORMANCE CONTRACTING SYSTEM:PERFORMANCE CONTRACTING SYSTEM:

ALL DIRECTORS OF BUREAUS, SERVICES, REGIONAL OFFICES ARE ACCOUNTABLE TO THE ALL DIRECTORS OF BUREAUS, SERVICES, REGIONAL OFFICES ARE ACCOUNTABLE TO THE SECRETARY THROUGH A PERFORMANCE CONTRACT. LIKEWISE, ALL DIVISION CHIEFS TO THE SECRETARY THROUGH A PERFORMANCE CONTRACT. LIKEWISE, ALL DIVISION CHIEFS TO THE DIRECTORS AND RANK AND FILE TO THE DIVISION CHIEF. THE PERFORMANCE CONTRACTING DIRECTORS AND RANK AND FILE TO THE DIVISION CHIEF. THE PERFORMANCE CONTRACTING SYSTEM PROVIDES A STRONG MECHANISM FOR MAKING ALL OFFICIALS AND EMPLOYEES SYSTEM PROVIDES A STRONG MECHANISM FOR MAKING ALL OFFICIALS AND EMPLOYEES ANSWERABLE TO THE SECRETARY OR TO THE PUBLIC OF THE RESULTS OF PERFORMANCE AND ANSWERABLE TO THE SECRETARY OR TO THE PUBLIC OF THE RESULTS OF PERFORMANCE AND FOR MONITORING AND SPOT CHECKING PERFORMANCE STATUS ANYTIME OF THE YEAR TO FOR MONITORING AND SPOT CHECKING PERFORMANCE STATUS ANYTIME OF THE YEAR TO ENABLE THEM TO PREPARE CATCH UP PLAN IN CASE. ENABLE THEM TO PREPARE CATCH UP PLAN IN CASE.

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National Social Welfare and Development Reform Agenda

Rationale for the Reform:

4. The on-going challenges of devolved social welfare and development service delivery

5. Inadequacy of general government spending on SWD services

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1. Deterioration of the poverty situation 2003 – 24.4% 2006 – 26.9%

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Poverty Incidence of Families 1991-2006 (in percent)

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2. Urgent need to protect the poor from rising prices

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SOURCES OF VULNERABILITYSOURCES OF VULNERABILITY

1.1. INCREASE IN FOOD PRICESINCREASE IN FOOD PRICES

2.2. REDUCED INCOMEREDUCED INCOME

3.3. LOSS OF WORKLOSS OF WORK

4.4. NATURAL AND MAN-MADE NATURAL AND MAN-MADE DISASTERSDISASTERS

Source: 2004 APISSource: 2004 APIS

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3. Fragmented and uncoordinated approach to social protection

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4. The on-going challenges of devolved social welfare and development service delivery

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Executive Order 15 (August 20, 1998) as Amended by Executive Order 221 (June 30,

2003)

DSWD MANDATEDSWD MANDATE

1. Provide assistance to LGUs, other NGAs, NGOs, POs and members of civil society in implementing programs, projects and services that will alleviate poverty and empower disadvantaged individuals, families and communities for an improved quality of life

2. Implement statutory and specialized programs directly lodged with the Department

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DSWD MISSION

“TO PROVIDE SOCIAL PROTECTION AND PROMOTE THE RIGHTS AND WELFARE OF THE POOR, VULNERABLE AND THE DISADVANTAGED INDIVIDUAL, FAMILY AND COMMUNITY TO CONTRIBUTE TO POVERTY ALLEVIATION AND EMPOWERMENT”

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DSWD VISION

“A society where the poor, vulnerable and disadvantaged

families and communities are empowered

for an improved quality of life.”

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DEPEDDEPED: ENHANCED KNOWLEDGE, SKILLS, : ENHANCED KNOWLEDGE, SKILLS, ATTITUDES AND VALUES OF ATTITUDES AND VALUES OF FILIPINOS TO LEAD PRODUCTIVE FILIPINOS TO LEAD PRODUCTIVE LIVES LIVES

DOH:DOH: IMPROVED HEALTH STATUS OF THE IMPROVED HEALTH STATUS OF THE POPULATION POPULATION

DOLE:DOLE: PRODUCTIVE AND COMPETITIVE PRODUCTIVE AND COMPETITIVE FILIPINO WORKERS FILIPINO WORKERS

ORGANIZATIONAL OUTCOMESORGANIZATIONAL OUTCOMES



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OPIFOPIFHIERARCHY OF OUTCOMESHIERARCHY OF OUTCOMES

SOCIETAL OUTCOMES: SOCIETAL OUTCOMES: 1) REDUCED POVERTY INCIDENCE1) REDUCED POVERTY INCIDENCE2) IMPROVED QUALITY OF LIFE2) IMPROVED QUALITY OF LIFE3) IMPROVED HUMAN DEVELOPMENT3) IMPROVED HUMAN DEVELOPMENT

SECTORAL OUTCOME: SECTORAL OUTCOME: IMPROVED WELL-BEING AND CAPACITY OF IMPROVED WELL-BEING AND CAPACITY OF

THE COUNTRY’S HUMAN RESOURCESTHE COUNTRY’S HUMAN RESOURCES

ORGANIZATIONAL OUTCOMES: ORGANIZATIONAL OUTCOMES:

DEPED: ENHANCED KNOWLEDGE, SKILLS, ATTITUDES AND DEPED: ENHANCED KNOWLEDGE, SKILLS, ATTITUDES AND VALUES OF FILIPINOS TO LEAD PRODUCTIVE LIVES VALUES OF FILIPINOS TO LEAD PRODUCTIVE LIVES

DOH: IMPROVED HEALTH STATUS OF THE POPULATIONDOH: IMPROVED HEALTH STATUS OF THE POPULATION DOLE: PRODUCTIVE AND COMPETITIVE FILIPINO WORKERSDOLE: PRODUCTIVE AND COMPETITIVE FILIPINO WORKERS DSWD: IMPROVED CAPACITY AND INCREASED DSWD: IMPROVED CAPACITY AND INCREASED

OPPORTUNITIES FOR THE POOR, VULNERABLE AND OPPORTUNITIES FOR THE POOR, VULNERABLE AND DISADVANTAGED SECTOR DISADVANTAGED SECTOR

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1. Deterioration of the poverty situation 2003 – 24.4% 2006 – 26.9%2. Urgent need to protect the poor from rising prices3. Fragmented and uncoordinated approach to

social protection

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In SEMP 1, financial management improvement was undertaken through the introduction of In SEMP 1, financial management improvement was undertaken through the introduction of the conceptual framework and vision for financial management, the semi-automation of the the conceptual framework and vision for financial management, the semi-automation of the financial management process in three Regional Offices of DSWD, and the development of financial management process in three Regional Offices of DSWD, and the development of management reporting. management reporting. SEMP 2 will fund similar reform initiatives not covered by SEMP 1 extension. Generally, SEMP 2 will fund similar reform initiatives not covered by SEMP 1 extension. Generally, it will cover process improvement, and development and design of computerized it will cover process improvement, and development and design of computerized financial management information systems in the Central Office; roll out of automation financial management information systems in the Central Office; roll out of automation of financial management systems to all Regional Offices of DSWD; implementation of of financial management systems to all Regional Offices of DSWD; implementation of management flash reporting system to all regions and divisions; development and management flash reporting system to all regions and divisions; development and training of financial analysis capability that could serve the Central Office and sixteen training of financial analysis capability that could serve the Central Office and sixteen Field Offices and continued capacity development of FM staff through training and Field Offices and continued capacity development of FM staff through training and skills upgrading; and procurement.skills upgrading; and procurement.

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REFORM INITIATIVE 3: Semi-automation of the financial management process in three REFORM INITIATIVE 3: Semi-automation of the financial management process in three Regional Offices of DSWD, and the development of management reporting. Regional Offices of DSWD, and the development of management reporting. SEMP 2 will fund similar reform initiatives not covered by SEMP 1 extension. Generally, SEMP 2 will fund similar reform initiatives not covered by SEMP 1 extension. Generally, it will cover process improvement, and development and design of computerized it will cover process improvement, and development and design of computerized financial management information systems in the Central Office; roll out of automation financial management information systems in the Central Office; roll out of automation of financial management systems to all Regional Offices of DSWD; implementation of of financial management systems to all Regional Offices of DSWD; implementation of management flash reporting system to all regions and divisions; development and management flash reporting system to all regions and divisions; development and training of financial analysis capability that could serve the Central Office and sixteen training of financial analysis capability that could serve the Central Office and sixteen Field Offices and continued capacity development of FM staff through training and Field Offices and continued capacity development of FM staff through training and skills upgrading; and procurement.skills upgrading; and procurement.

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In SEMP 1, financial management improvement was undertaken through the introduction of In SEMP 1, financial management improvement was undertaken through the introduction of the conceptual framework and vision for financial management, the semi-automation of the the conceptual framework and vision for financial management, the semi-automation of the financial management process in three Regional Offices of DSWD, and the development of financial management process in three Regional Offices of DSWD, and the development of management reporting. management reporting. SEMP 2 will fund similar reform initiatives not covered by SEMP 1 extension. Generally, SEMP 2 will fund similar reform initiatives not covered by SEMP 1 extension. Generally, it will cover process improvement, and development and design of computerized it will cover process improvement, and development and design of computerized financial management information systems in the Central Office; roll out of automation financial management information systems in the Central Office; roll out of automation of financial management systems to all Regional Offices of DSWD; implementation of of financial management systems to all Regional Offices of DSWD; implementation of management flash reporting system to all regions and divisions; development and management flash reporting system to all regions and divisions; development and training of financial analysis capability that could serve the Central Office and sixteen training of financial analysis capability that could serve the Central Office and sixteen Field Offices and continued capacity development of FM staff through training and Field Offices and continued capacity development of FM staff through training and skills upgrading; and procurement.skills upgrading; and procurement.

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Automation of Other DSWD Regional OfficesAutomation of Other DSWD Regional OfficesThe activity will involve training and acquisition of computers for the Regional Offices. Training The activity will involve training and acquisition of computers for the Regional Offices. Training

will be conducted by DSWD trainers trained by KPMG consultants on Excel-based solution. will be conducted by DSWD trainers trained by KPMG consultants on Excel-based solution. Automation of Central Offices and the Full Development and Implementation of Management Automation of Central Offices and the Full Development and Implementation of Management

Flash ReportingFlash ReportingThe automation of central office financial management information system considers the option of The automation of central office financial management information system considers the option of

piloting in DSWD the computerized NGAS module that will be developed by COA. On piloting in DSWD the computerized NGAS module that will be developed by COA. On this, COA has already approved the piloting of computerized NGAS in DSWD, among other this, COA has already approved the piloting of computerized NGAS in DSWD, among other few agencies selected for this purpose.few agencies selected for this purpose.

Capacity Development for FM StaffCapacity Development for FM StaffThis activity will involve training of financial management core staff in Central Office and Field This activity will involve training of financial management core staff in Central Office and Field

Offices on financial analysis to address requirements of the new FM framework and thereafter Offices on financial analysis to address requirements of the new FM framework and thereafter a continuing program on training and skills upgrading of FM staff as part of governance a continuing program on training and skills upgrading of FM staff as part of governance capacity building. capacity building.

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On Strengthening public financial management capacity, partner countries commit to:On Strengthening public financial management capacity, partner countries commit to:Intensify efforts to mobilize domestic resources, strengthen fiscal sustainability, and Intensify efforts to mobilize domestic resources, strengthen fiscal sustainability, and

create an enabling environment for public and private investments.create an enabling environment for public and private investments.Publish timely, transparent and reliable reporting on budget execution.Publish timely, transparent and reliable reporting on budget execution.Take leadership of the public financial management reform processTake leadership of the public financial management reform processPFM involves a wide range of activities which includes financial planning, budgeting, PFM involves a wide range of activities which includes financial planning, budgeting,

accounting, cash management, internal control, internal and external audit, accounting, cash management, internal control, internal and external audit, information management and others. As to organization, there two levels of entities information management and others. As to organization, there two levels of entities involved in PFM: the oversight agencies like DBM, COA, NEDA and DOF and the involved in PFM: the oversight agencies like DBM, COA, NEDA and DOF and the others are the implementing agencies.others are the implementing agencies.

Except for the oversight agencies, PFM in the implementing agencies are regarded as Except for the oversight agencies, PFM in the implementing agencies are regarded as mere support units treating them like mere bookkeepers. This condition thus gives mere support units treating them like mere bookkeepers. This condition thus gives reason to pursue reform process in PFM more specifically in the shift of FM reason to pursue reform process in PFM more specifically in the shift of FM framework to that being a strategic partner of line and staff units in delivering the framework to that being a strategic partner of line and staff units in delivering the desired organizational outcome. It therefore calls for PFM to be a financial desired organizational outcome. It therefore calls for PFM to be a financial management advisor, catalyst of change, ICT champion, risk management management advisor, catalyst of change, ICT champion, risk management specialist, etc. Hence the need to strengthen PFM along these concerns.specialist, etc. Hence the need to strengthen PFM along these concerns.

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DSWD EXAMPLEDSWD EXAMPLESTRENGTHENING OF FM ORGANIZATION:STRENGTHENING OF FM ORGANIZATION:

1.1. FM STRUCTURE NEEDED TO PURSUE FM FRAMEWORK AND REFORMS INCORPORATED IN FM STRUCTURE NEEDED TO PURSUE FM FRAMEWORK AND REFORMS INCORPORATED IN THE RATIONALIZATON AND STREAMLINING PLAN OF THE DSWD. SUBMITTED TO DBM.THE RATIONALIZATON AND STREAMLINING PLAN OF THE DSWD. SUBMITTED TO DBM.

2.2. STAFF QUALIFICATIONS, TRAININGSTAFF QUALIFICATIONS, TRAINING

3.3. CAPABILITY BUILDING TO EQUIP STAFF WITH COMPETENCIESN TO PURSUE FM CAPABILITY BUILDING TO EQUIP STAFF WITH COMPETENCIESN TO PURSUE FM FRAMEWORKFRAMEWORK

STRENGTHENING OF FM SYSTEMSSTRENGTHENING OF FM SYSTEMS

1.INSTALLATION OF ENGAS (ACCOUNTINGAND BUDGET MODULES1.INSTALLATION OF ENGAS (ACCOUNTINGAND BUDGET MODULES

2 SYSTEMS AND PROCEDURES. INTERNAL CONTROL STRUCTURE OF THE DEPARTMENT 2 SYSTEMS AND PROCEDURES. INTERNAL CONTROL STRUCTURE OF THE DEPARTMENT STUDIED/REVIEWED ON A CONTINUING BASIS TO INSTITUTIONALIZE CHECK AND STUDIED/REVIEWED ON A CONTINUING BASIS TO INSTITUTIONALIZE CHECK AND BALANCE MECHANISM IN EVERY TRANSACTION. CIRCULAR/GUIDELINES ISSUED BALANCE MECHANISM IN EVERY TRANSACTION. CIRCULAR/GUIDELINES ISSUED DIRECTING ALL CONTRACTS AND OTHER ISSUANCES PASS THE FMS REVIEW TO DIRECTING ALL CONTRACTS AND OTHER ISSUANCES PASS THE FMS REVIEW TO DETERMINE WHETHER ENOUGH SAFEGUARDS HAS BEEN PROVIDED TO PROTECT THE DETERMINE WHETHER ENOUGH SAFEGUARDS HAS BEEN PROVIDED TO PROTECT THE DEPARTMENT RESOURCES AND WHETHER IT PROMOTES EFFICIENCY, EFFECTIVENESS DEPARTMENT RESOURCES AND WHETHER IT PROMOTES EFFICIENCY, EFFECTIVENESS AND ECONOMY.AND ECONOMY.

3. MONITORING. SYSTEM ON MONITORING CENTRALLY MANAGED FUNDS OPERATIONALIZED 3. MONITORING. SYSTEM ON MONITORING CENTRALLY MANAGED FUNDS OPERATIONALIZED TO ENSURE FUNDS RELEASED TO FOS ARE UTILIZED FOR THE PURPOSE IT WAS TO ENSURE FUNDS RELEASED TO FOS ARE UTILIZED FOR THE PURPOSE IT WAS INDICATED.INDICATED.



FM REFORM 12: CONTINUOUS ASSESSMENT FM REFORM 12: CONTINUOUS ASSESSMENT OF SYSTEMS AND PROCEDURESOF SYSTEMS AND PROCEDURES

INTERNAL CONTROL STRUCTURE OF THE DEPARTMENT INTERNAL CONTROL STRUCTURE OF THE DEPARTMENT STUDIED/REVIEWED ON A CONTINUING BASIS TO STUDIED/REVIEWED ON A CONTINUING BASIS TO INSTITUTIONALIZE CHECK AND BALANCE MECHANISM IN INSTITUTIONALIZE CHECK AND BALANCE MECHANISM IN EVERY TRANSACTION. CIRCULAR/GUIDELINES ISSUED EVERY TRANSACTION. CIRCULAR/GUIDELINES ISSUED DIRECTING ALL CONTRACTS AND OTHER ISSUANCES PASS DIRECTING ALL CONTRACTS AND OTHER ISSUANCES PASS THE FMS REVIEW TO DETERMINE WHETHER ENOUGH THE FMS REVIEW TO DETERMINE WHETHER ENOUGH SAFEGUARDS HAS BEEN PROVIDED TO PROTECT THE SAFEGUARDS HAS BEEN PROVIDED TO PROTECT THE DEPARTMENT RESOURCES AND WHETHER IT PROMOTES DEPARTMENT RESOURCES AND WHETHER IT PROMOTES EFFICIENCY, EFFECTIVENESS AND ECONOMY.EFFICIENCY, EFFECTIVENESS AND ECONOMY.

Documents

GRAND MEN SENG HOTEL DAVAO CITY OCTOBER 15-18, 2008