MPA202

PERFORMANCE MANAGEMENT
INITIATIVES FOR THE NEW
MILLENNIUM
&
HUMAN RESOURCE MANAGEMENT

Prepared by:

PRECY P. CO
 What is PFM?
Public Financial Management (PFM) is a system of rules, procedures
and practices for government to manage public finances in the areas
of:
■ Budgeting
■ Accounting
■ Auditing
■ Cash Management
■ Management of public debt
■ Revenue generation
■ Public reporting on public sector financial operations
 Why do we need a sound PFM?
A working PFM system has three main objectives:
■ 1. To ensure that our public spending is in line with available
resources;
■ 2. Our allocation of resources to priority needs is effective, and
we can shift resources from poor to better performers; and
■ 3. Our limited resources are used efficiently so that we can
achieve maximum value for money.
The PFM Cycle
Reforms to PFM System
▪ UACS – Unified Accounts Code Structure

▪ GIFMIS – Government Integrated Financial Management

Information System

▪ TSA – Treasury Single Account

▪ PIB - Performance Informed Budgeting

Key PFM Initiatives in Philippine Government
Unified Accounts Code Structure (UACS)
▪ A harmonized coding structure jointly developed by the Department
of Budget and Management (DBM), Commission on Audit (COA),
Department of Finance (DOF) and Bureau of the Treasury (BTr) in
2013 and first used in the 2014 Budge, which aims to facilitate
financial reporting and consolidation of actual revenue collection and
expenditures, enable the assessment of outturns against
transparency/ accountability and improve efficiency in terms of
utilization of government funds.
UNIFIED ACCOUNTS CODE STRUCTURE (UACS)
■ The implementation of GIFMIS started in 2012 and is being led by
the Department of Budget and Management (DBM).
■ The Government Integrated Financial Management Information
System (GIFMIS) is a web-based application that will enable
government agencies to generate real-time, reliable and accurate
financial reports to aid decision making, enabling citizens to know
where public funds are spent.
Changes with GIFMIS
▪ Treasury Circular Number 03-2013 is issued to implement
the Memorandum of Agreement for authorized banks and
authorized government depository banks to collect and
remit national internal revenue taxes, customs duties, and
other national collections under the Treasury Single Account
(TSA).
▪ The Bureau of the Treasury (BTr) operates the TSA which is
maintained at the Bangko Sentral ng Pilipinas.
The TSA Process
▪ A set of integrated processes that aims to improve the
efficiency and effectiveness of public expenditure by linking
the funding to results, making systematic use of
performance information, although not solely, in resource
allocation and management.
PIB Structure
 New Government Accounting System
(NGAS)

■ The New Government Accounting System Manual presents

the basic policies and procedures; the new coding system
and chart of accounts; the accounting books,
reports/forms and financial statements, and illustrative
accounting entries to be adopted by all local government
units effective January 1, 2002.
 New Government Accounting System
(NGAS)

The objectives of the Manual are to prescribe the following:

1) Uniform guidelines and procedures in accounting for

government funds and property;
2) New coding structure and new chart of accounts; and
3) New accounting books, reports/forms, financial
statements and accounting entries.
 New Government Accounting System
(NGAS)
This Manual is prescribed by the Commission on Audit pursuant to
Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic
of the Philippines which provides that:

“The Commission on Audit shall have exclusive authority, subject to the

limitations in this Article, to define the scope of its audit examination,
establish the techniques and methods required therefor, and
promulgate accounting and auditing rules and regulation, including
those for the prevention and disallowance of irregular, unnecessary,
excessive, extravagant, or unconscionable expenditures, or uses of
government funds and properties”.
Accounting System
a) General Accounting Plan
▪ Appropriations, Allotments and Obligations
▪ Collections and Deposits
▪ Disbursements – (By cash, By check)
▪ Miscellaneous and Other transactions
b) Budgetary Accounts
▪ Appropriations
▪ Allotments
▪ Obligations
Basic Features and Policies of NGAS
▪ Accrual Accounting
▪ One fund Concept
▪ Special Accounts in the General Fund
▪ Chart of Accounts and Account Codes
▪ Financial Statements
▪ Trial Balance
▪ Appropriations, Allotments and Obligations
Computerization of NGAS (e-NGAS)
■ is an accounting software developed by the
Commission on Audit (COA) to promote correctness,
reliability, completeness and timeliness in recording
government financial transactions and to generate
financial reports in accordance with the policies and
procedures of the New Government Accounting System
(NGAS).
 Basic Features of e-NGAS
There is an automatic checking of balances between debits and
credits.
 Basic Features of e-NGAS
▪ Adequate security control mechanisms for data integrity and
accuracy.
 Basic Features of e-NGAS
▪ Up-to-date generation of government standard reports necessary
for management and auditing purposes.
▪ Real- time query of interim reports and documents.
 Basic Features of e-NGAS
▪ User-friendly screen.
Basic Features of e-NGAS
▪ Simplified entry of financial transactions and activities,
using transaction templates.
 Basic Features of e-NGAS
▪ Use of responsibility accounting for a more detailed
financial reporting and analysis.
 Basic Features of e-NGAS
▪ It also provides an on-line inquiry of the Journal Entry
Voucher.
 Basic Features of e-NGAS
▪ Expense per Responsibility Center.
▪ Income per Responsibility Center
Basic Features of e-NGAS
Basic Features of e-NGAS
▪ It also has a facility to generate the Trial Balance
reports and records.
Basic Features of e-NGAS
▪ Statement of Income and Expenses.
Basic Features of e-NGAS
▪ Balance Sheet.
▪ Statement of Government Equity
▪ Statement of Cash Flows
Public Expenditure Management (PEM)
Public Expenditure Management (PEM) tends to promote the
achievement of three outcomes, namely:
▪ aggregate fiscal discipline;
▪ allocative efficiency; and
▪ operational efficiency.
Public Expenditure Management (PEM)
PEM includes the tools of:
▪ Medium-Term Expenditure Framework (MTEF)
▪ Performance-Informed Budgeting (PIB) and its associated
Organizational Performance Indicator Framework (OPIF)
▪ Zero-Based Budgeting (ZBB)
▪ Program or Convergence Budgeting (P/CB)
▪ Bottom-up Budgeting (BUB)
Procurement Reforms
Problem Areas and Reform Measures
Procurement Reforms
Enactment of GPRA
Procurement Reforms
Key Features of GPRA
■ As a primary aspect of the Philippine Government's
public procurement reform agenda, the Government
Procurement Policy Board (GPPB) was established by
virtue of Republic Act No. 9184 (R.A. 9184) as an
independent inter-agency body that is impartial,
transparent and effective, with private sector
representation.
 Functions
Policy –Making
▪ Amend implementing rules and regulation of procurement law (quasi-
legislative function)
▪ Prepare generic procurement manual and standard bidding forms
Capacity Development
▪ Establish a sustainable training program
Monitoring
▪ Assist procuring entities improve their compliance
▪ Review effectiveness of procurement law
Philippine Government Electronic Procurement System
(PhilGEPS):
▪ is the single, centralized electronic portal that serves as the
primary and definitive source of information on government
procurement. (Section 8, R.A. 9184)
Features of the PhilGEPS:
▪ Electronic Bulletin Board
▪ Electronic Registry
▪ Electronic Catalogue
▪ Virtual Store
▪ Electronic Payment
▪ Electronic Bid Submission
Participation of Civil Society
Organizations (CSOs)
▪ Participates as Observer in all stages of the procurement
process.
▪ As Observer, they represent the public, the taxpayers who
are interested in seeing to it that procurement laws are
observed and irregularities are averted.
Participation of Civil Society
Organizations (CSOs)
Observers shall be allowed access to the following
documents upon their request, subject to signing of a
confidentiality agreement:
(a) minutes of BAC meetings;
(b) abstract of Bids;
(c) post-qualification summary report;
(d) APP and related PPMP; and
(e) opened proposals.
Philippine Procurement Paradigm
Bidding Process (Goods & Infra)
Bidding Process (Consulting)
▪ The Civil Service Commission (CSC) is the central
personnel agency of the Philippine government. One of
the three independent constitutional commissions with
adjudicative responsibility in the national government
structure, it is also tasked to render final arbitration on
disputes and personnel actions on Civil Service matters.
 Responsibility

▪ Recruitment, building, maintenance, and retention of a

competent, professional, and highly motivated
government workforce truly responsive to the needs of
the government’s client – the public.
 Specific Functions

▪ Leading and initiating the professionalization of the civil

service;
▪ Promoting public accountability in government service;
▪ Adopting performance-based tenure in government;
and
▪ Implementing the integrated rewards and incentives
program for government employees.
Human Resources Initiatives
Human Resources Initiatives
 Competency-Based Recruitment and
Qualifications Standards (CBRQS)

▪ With this program, the CSC recognizes that hiring and

retaining the best employees will lay the foundation for
developing high performing, competent, and credible
civil servants.
Qualification Standards + Competencies
 Strategic Performance Management System
(SPMS)

▪ is a mechanism that links employee performance with

organizational performance to enhance the
performance orientation of the compensation system.
The SPMS has the following basic elements:
The SPMS Process
The SPMS Rating Scale
 WHAT IS PRIME-HRM?
▪ PRIME-HRM stands for “Program to Institutionalize Meritocracy
and Excellence in Human Resource Management.”
▪ It aims to elevate public sector human resource management to
a level of excellence through the assessment, assistance, and
awarding processes of HRM Systems, Practices, and
Competencies using HRM maturity level indicators that are at
par with global HRM standards
Who are covered by PRIME-HRM?
The PRIME-HRM Maturity Levels for the Four
Core HRM Systems are as follows:
ASSIST
THE PRIME-HRM STAGES:
 Other CSC HRM initiatives in organizing for
performance include:
▪ Organizational Development Programs
▪ Job Analysis and Position Classification
▪ Performance Management and Evaluation Systems
▪ Leadership and Management Development Programs
▪ Knowledge Management Initiatives
 Other CSC HRM initiatives in performance
evaluation include:
▪ Results-Based Performance Management System (RPMS)
▪ Competency-Based Performance Appraisal
▪ Performance-Based Incentives
▪ Performance Improvement Plans
▪ Performance Audit and Evaluation
Other CSC HRM initiatives in rationalizing the
bureaucracy include:
▪ Rationalization Program
▪ Position Classification and Compensation System (PCES)
▪ Job Redesign and Enrichment
▪ Process Improvement and Streamlining
▪ Merit-Based Selection and Promotion
▪ Skills Enhancement and Training Programs
 Other CSC HRM initiatives in public sector
compensation include:
▪ Salary Standardization Law (SSL)
▪ Compensation and Position Classification System (CPCS)
▪ Performance-Based Bonus (PBB)
▪ Mid-Year Bonus (MYB) and Year-End Bonus (YEB)
▪ Market-Based Compensation Approaches
▪ Regular Salary Reviews
 Other CSC HRM initiatives in quality
management systems include:
▪ ISO 9001 Certification
▪ Quality Management Framework
▪ Customer Satisfaction Surveys
▪ Quality Assurance Reviews
▪ Internal Quality Audits
Other CSC HRM initiatives in local government
include:
▪ Local Governance Capability Development Program (LGPDP)
▪ Seal of Good Local Governance (SGLG)
▪ Local Government Human Resource Management System (LGHRS)
▪ Local Government Code Compliance and Monitoring
▪ Citizen's Charter Compliance
▪ Capacity Development for Barangay Officials