REPUBLIC OF THE PHILIPPINES EUROPEAN UNION DCI-ASIE/2011/022-691 Philippine Association for Government Budget Administration April 3, 2013 Presented by:

REPUBLIC OF THE PHILIPPINES

EUROPEAN UNIONDCI-ASIE/2011/022-691

Philippine Association for Government Budget AdministrationApril 3, 2013

Presented by: Annabelle Ceniza-Echavez, DBM-RO VII

Support to Local Government Units for More Effective and Accountable Public Financial Management

RATIONALE

o The four-year European Union – funded project was designed considering the following:

1. LGUs are still faced with the challenge of fiscal sustainability; and

2. Weak LGU PFM is due, in part, to poor coordination between the oversight agencies and the LGUs.

Support to Local Government Units for More Effective and Accountable Public Financial Management

OBJECTIVESo Overall:

• To contribute to the achievement of the Millennium Development Goals (MDGs) and poverty reduction in the Philippines, in line with the 2011-2016 Philippine Development Plan, through improved public financial management resulting in improved delivery of basic services by local governments.

o Specific:

• To enhance capacity of local governments to generate revenue and to allocate and spend public funds more effectively and efficiently.

Support to Local Government Units for More Effective and Accountable Public Financial Management

PROJECT BUDGETCategories

EU contribution (in EUR)

Contracting authority / Paying authority

1. ServicesTechnical assistance 3 500 000 European CommissionMonitoring, evaluation and audit 200 000 European Commission

2. SuppliesEquipment , Software 550 000 DBM / European Commission Publications 250 000 DBM / European Commission

3. Operating costsEvents (training, mentoring, coordination)

3 000 000 DBM / European Commission

Office Operating Costs (staff, consumables)

300 000 DBM / European Commission

4. IECProject Information, Education and Communication materials and mass media campaigns

100 000 DBM / European Commission

Communication/Visibility 50 000 European Commission

5. ContingenciesContingencies 50 000 DBM / European Commission

TOTAL 8 000 000

Support to Local Government Units for More Effective and Accountable Public Financial Management

PROJECT PHASES

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

OPERATIONAL IMPLEMENTATION PHASE

CLOSURE PHASE

START: JULY 3, 2012

INCEPTION PHASE: SEPT 2012 – MAR 2013

YEAR 1: APR 1 – JUNE 30, 2013

YEAR 2: JUL 2013 – JUN 2014

YEAR 3: JUL 2014 – JUN 2015

YEAR 4: JUL 2015 – JUN 2016

KEY RESULT AREAS

Support to Local Government Units for More Effective and Accountable Public Financial Management

EXPECTED OUTPUTS

Support to Local Government Units for More Effective and Accountable Public Financial Management

1. Capacity Building Program/s for Oversight National Government Agencies, including Regional Offices;

2. A PFM Reform Agenda (PFM Roadmap) developed taking into consideration the National PFM Roadmap and results of PFM Assessments and Improvement Planning;

3. Capacity Building Program for LGUs;

4. Updated / Refined Manuals covering Planning and Budgeting, Internal Control/ Internal Audit, Revenue Generation and Procurement, among others;

5. Electronic tools for financial management; and

6. Institutionalized PFM Assessment (using PFMAT for LGUs) and Improvement Planning in the LGUs.

ORGANIZATIONAL STRUCTURE

Support to Local Government Units for More Effective and Accountable Public Financial Management

ORGANIZATIONAL STRUCTURE

Support to Local Government Units for More Effective and Accountable Public Financial Management

Project Steering Committee:

• Chair: Sec. Florencio B. Abad (Usec. Mario L. Relampagos)

• Members:

DILG: Usec. Austere A. Panadero (Dir. Annaliza Bonagua / Director Manuel

Q. Gotis)

BLGF: Usec. Jeremias N. Paul, Jr. (OIC ED Salvador M. del Castillo)

NEDA :DDG Margarita R. Songco (Dir. Remedios Endencia)

EU Representative

COA :

ORGANIZATIONAL STRUCTURE

Support to Local Government Units for More Effective and Accountable Public Financial Management

Imprest Administrator: Dir. Julian Ll. Pacificador, Jr.

Imprest Accounting Officer: Asec. Janet B. Abuel

Project Technical Working Group:

• DBM: Dir. Ruby R. Esteban and Dir. Carmencita N.

Delantar• DILG: Dir. Annaliza Bonagua and Mr. Edward

Templonuevo• DOF: Dir. Divina Corpuz and Ms. Maria Paz

Javier• NEDA: Dir. Remedios Endencia and Mr. Alih

Faisal Abdul

STATUS OF IMPLEMENTATION

Support to Local Government Units for More Effective and Accountable Public Financial Management

o PSC and PTWG already organizedo TAT already mobilized and hosted at the

DBMo Start Up Activities already underwayo Preparation of Overall and Annual Work

Plans ongoingNEXT STEPS:

oCompletion by the TAT of the Project’s Inception Report

oPreparation and implementation of the First Operational Programme Estimates

REPUBLIC OF THE PHILIPPINES

EUROPEAN UNIONDCI-ASIE/2011/022-691