PHILGEPS

MODERNIZATION
 PHILGEPS MODERNIZATION
(Philippine Government Electronic Procurement System)
 In many countries including the Philippines, the government is the single largest
procuring entity in the economy. Each year, the Philippine government spends billions of
taxpayers’ money to acquire goods and services for its projects and deliver services to its
citizens. Government leaders who are responsible for managing public funds are
constantly looking at how they can spend better by paying more attention to their
procurement methods. Most of the time however, the capacity of government to handle key
procurement processes with its suppliers has not kept pace with modern best
practices. Many of the problems stem from outdated manual workflows or lack of clear
guidelines in some steps of the process. These challenges significantly impact the
operational efficiencies and effectiveness of its procurement system and the ability of
many businesses to participate without any barrier.
 Many studies indicate that government and private institutions realize substantial savings
on their total expenditure by making the purchasing process more uniform and transparent.
Because of this fact, governments have created electronic procurement systems that offer
potential for greater cost savings and better controls over their procurement practices.
They have developed Internet based application services to provide business with a single
point of access to all public procurement creating an open and transparent procurement
environment that is efficient and providing faster service that can be shared by all
government agencies. The Philippine government has decided to take advantage of the new
technologies and the use of the internet to establish its own electronic procurement
system. It is developing electronic tools and services that will assist the agencies with
procurement of goods and services as well as suppliers who wish to sell these goods and
services to the government.
 Many stakeholders using the e-procurement system are beginning to
experience significant impact even if the application is limited to a few
functionalities at this time. They indicate that the service is lowering
procurement costs and increasing the number of firms participating in each bid.
The availability of accurate data from the system is contributing significantly
to higher quality purchasing decisions and better prices for government. For
suppliers it is lessening marketing costs and paving the way for more micro, small
and medium enterprises to participate, giving a broader spectrum of
businesses the opportunity to benefit income wise. In establishing a more
transparent procurement environment, government is able to contribute to the
national goals of competitiveness and economic development
 PHILGEPS MODERNIZATION
(Philippine Government Electronic Procurement System)
 RA 9184 – “An Act providing for the Modernization, Standardization and Regulation of the
Procurement Activities of the Government and for other purposes,” otherwise known as the
Government Procurement Reform Act of 2003
 policy of the state to promote the ideals of good governance in all its branches, departments, agencies,
subdivisions, and instrumentalities, including government-owned and/or controlled corporations and local
government units.
 Aquino Administration
 In line with its platform for good governance, the Aquino administration pursued procurement reforms aiming
to clarify the existing polices, remove loopholes, streamline the processes, and maximize technological
innovations.
 So, the IRR was revised on January 2015 and was issued in the year 2016. The objective of the IRR review is
to further streamline, standardize and clarify the rules and procedures to address prevalent procurement issues
in government.
 The revised IRR likewise simplifies the submission of eligibility documents by the bidders. For
one, the PhilGEPS certificate of registration suffices for the other documents that bidders used
to submit. Other eligibility documents include the statement of the single largest completed
contract and the statement of net financial contracting capacity or credit line commitment as
proof of a bidder’s financial capacity. The reduced number of documents should not only
encourage more bidders to participate in public procurement but also lessen opportunities for
the agencies to disqualify bidders during the eligibility stage.
 The revised IRR also seeks to reduce the cost incurred by the agencies in advertising bid
opportunities in newspapers. In particular, it increases the threshold amounts for the
procurement activities that must be advertised: for goods, from above P2 million to P10 million;
for infrastructure, from P5 million to P15 million; and for consulting services, from P1 million
to P5 million. Other key features of the revised IRR include the consolidation of all rules on the
alternative modes of procurement in one set of guidelines, compared to the present situation in
which these rules are fleshed out in several GPPB issuances.
 From 2008 to 2012, an average of P318 billion of the Philippine Budget was spent for public procurement
requirements. The said amount accounts for an average of 21 percent of the national budget and 3.7 percent of the
GDP (ADB, 2013a).
 The Asian Development Bank (ADB) highlighted the importance of having a sound public procurement system.
“Sound public procurement policies and practices are among the essential elements of good governance. Good
practices in procurement reduce costs and produce timely results; poor practices lead to waste and delays (ADB,
2002).”
 The Organization for Economic Cooperation and Development1 (2015), meanwhile, laid down the elements of a
sound procurement system: 1) procurement rules and procedures are simple, clear and secure access to
procurement opportunities; 2) effective institutions to conduct procedures and conclude, manage, and monitor
public contracts; 3) sustainable human resources to plan and carry out the procurement processes; 4) appropriate
electronic tools to facilitate the process and; 5) competent contract management.
 Savings of the Government from the Utilization of Procurement Service
 2010-2011 2B
 2012-2013 4B
 2013-2014 5B
 2014-2015 7B
 2018-2019 18.3 B

 “We are proud to report that our procurement reforms are finally bearing fruit” –Sen. Diokno
 The PhilGEPS has brought significant benefits to the government in terms of the following:
 Improved transparency in government procurement
 Enhanced competition and realization of value for money in procurement
 Improved administrative efficiencies
 Reduction in procurement costs, including newspaper advertisements
 Provision of audit trails through information posted in the system; and
 Serves as a medium in implementation of government procurement policies, transparency and good
governance measures
 sThe expansive database of information in PhilGEPS aids government agencies in procurement
planning and monitoring
 PhilGEPS presently offers the following functionalities:
 Electronic Bulletin Board
 Government Official Merchants’ Registry
 Electronic Catalogue
 Automatic Bid Notification
 E-Bidding
 Electronic Payment of PhilGEPS Fees and Purchase of Bid Documents (for PS)
 The modernization of the PhilGEPS is ongoing with the vision of making it the total provider of
eProcurement solutions to the government and its stakeholders. This includes the installation of additional
functionalities like a more integrated e-bidding system tied into the government annual procurement plans
and a facility for electronic payment to merchants, purchase of bid forms and payment of other bidding
fees.
NATIONAL GOVERNMENT
RIGHTSIZING PROGRAM
 Benigno Aquino III Administration
 He continued the Rationalization Program which Macapagal-Arroyo
Administration implemented and enabled by EO No. 366.
 Republic Act No. 10149, otherwise known as “GOCC Governance Act of
2011”
Under the Republic Act No. 10149, the GCG or Governance
Commission for GOCCS was created as the central policy-making and
regulatory body mandated to safeguard the State’s ownership rights and ensure
that the operations of GOCCs are transparent and responsive to the needs of the
public.
 DUTERTE ADMINISTRATION
NATIONAL GOVERNMENT RIGHTSIZING PROGRAM
 House Bill No. 5707 entitled "An Act Rightsizing the National
Government to Improve Public Service Delivery."
 Comparison
Rationalization Program
Coverage of the Program All Departments/Agencies of the
Executive Branch, including
GOCCs/GFIs
Mechanics of the Program • Strategic review was limited to
an agency's internal structure,
and did not cut accross other
agencies
• Strategic review done by
Change Management Team in
each Agency
Sunset Provision
Rightsizing Program
All Departments/Agencies of the
Executive Branch, including
GOCCs not covered by RA No.
10149
• Strategic review to cut accross
various agencies
• Strategic review to be
conducted by the Committee on
Rightsizing the Executive
Branch
Authority of the President, and
existence of the Committee on
Rightsizing and Executive Branch,
will end 3 years after effectivity of
the law
 The Aim of the Rightsizing Program
 To address government dysfunctions such as:
- Agencies with redundant, duplicating or overlapping functions
- Agencies that have outlived their purposes
- Agency functions that could be better undertaken by the private sector or
devolved to LGUs
 The Rightsizing Program is not about:
 Not outright downsizing.
 Not forced retirement / separation of personnel.
 Not an early retirement program.
 SOURCES:
 https://gcg.gov.ph/aboutus/#:~:text=10149%20(RA%20No.,the%20needs%20of%20the%20public.
 https://www.officialgazette.gov.ph/2011/06/06/republic-act-no-10149/
 https://www.google.com/url?sa=t&source=web&rct=j&url=https://ncpag.upd.edu.ph/wp-
content/uploads/wp_dulpina.pdf&ved=2ahUKEwjJwKHIwK_tAhUUhZQKHXlbDkoQFjADegQI
AhAB&usg=AOvVaw1aSN-EigKNrgAGe1NGPtDM
 https://www.google.com/url?
sa=t&source=web&rct=j&url=https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1846.p
df&ved=2ahUKEwjJwKHIwK_tAhUUhZQKHXlbDkoQFjAKegQICBAB&usg=AOvVaw3PFou
DEQVHfnWVjrqlmgt1
 https://slideplayer.com/amp/13343760/
 https://mb.com.ph/2020/06/30/dbm-rightsizing-bill-not-a-forced-retirement-or-separation-scheme/
B U D G E T T R E A S U RY A N D
MANAGEMENT SYSTEM
HISTORICAL PERSPECTIVE AND PAST
EFFORTS TO STRENGTHEN PFM (AQUINO
REGIME)
January 2010
• A Memorandum of Agreement was entered into by and between Commission on Audit (COA) ;
the Department of Budget and Management (DBM), and the Department of Finance – Bureau of
Treasury (DOF-BTR). This MOA was used to establish an inter-agency committee (termed as
GIFMMIS Committee) to clarify, simplify, improve and harmonize the financial management
processes and information system of the public sector.
September 6, 2011
• The government’s mandate was formalized (Executive Order Number 55) to complete the
integration and automation of government financial management systems. The GIFMIS
Committee, which would now be called the PFM Committee, was tasked with undertaking the
development of GIFMIS and with implementing the PFM Reform Roadmap and launching a
Treasury Single Account.
HISTORICAL PERSPECTIVE AND PAST
EFFORTS TO STRENGTHEN PFM (AQUINO
REGIME)
• The Philippines–Australia Public Financial Management Program (PFMP) was created to support
the government’s efforts to implement its Philippine PFM Reform Roadmap: Towards Improved
Accountability and Transparency, 2011–2015.
REFORMS:
 New Government Accounting System. In 2002, COA rolled out a new government accounting
system (NGAS) that aimed to simplify government accounting, in conformity with international
standards, and to generate periodic and relevant financial statements.
 Accounting and Auditing Standards. Twenty-five Philippine Public Sector Standards of Accounting
have been harmonized with the International Public Sector Accounting Standard (IPSAS). In 2013,
twenty-four Philippine Public Sector Standards on Auditing were adopted through COA Resolution
No. 2013-007. International Financial Reporting Standards (IFRS) were adopted in 2014 through
COA Resolution 2014-003. (PGIAM was issued.)
HISTORICAL PERSPECTIVE AND PAST
EFFORTS TO STRENGTHEN PFM (AQUINO
REGIME)
 Revision of Chart of Accounts. In 2013, the chart of accounts of the National Government was
revised to provide new accounts for the adoption of PPSSA through COA Circular No. 2013-
002.
 Treasury Single Account (TSA). Treasury Circular Number 03-2013 was 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 into the TSA. The DOF-BTR operates the TSA which is maintained at the Bangko
Sentral ng Pilipinas.
 Capacity building. The participation of civil society organizations (CSO) in the national budget
process has been developed and formalized under Budget Partnership Agreements (BPAs)
covering a large number of departments, agencies and Government Owned and Controlled
Corporations (GOCCs).
HISTORICAL PERSPECTIVE AND PAST
EFFORTS TO STRENGTHEN PFM (AQUINO
REGIME)
 Unified Account Code Structure (UACS). A harmonized UACS, formulated by DBM and
COA, was rolled out to support the 2014 budget preparation process, and is being adopted to
support accounting and reporting during 2015.
 Performance-Informed Budgeting (PIB). This approach strengthens linkages between
planning, budgeting and outcomes.
 Budget Priorities Framework (BPF). The BPF set the budget priorities for FY2014 in line with
the five priority areas of President Aquino’s Social Contract with the Filipino People.
 Government Integrated Financial Management Information System (GIFMIS). The PFM
agencies implemented the pre-requisites for GIFMIS, including the TSA, UACS, Revised Chart
of Accounts, Performance-Informed Budgeting framework, and improved business processes.
HISTORICAL PERSPECTIVE AND PAST
EFFORTS TO STRENGTHEN PFM (AQUINO
REGIME)
 Management of contingent liabilities. A list of contingent liabilities has been prepared to
facilitate central monitoring and management of guaranteed loans. The GOCC debt report
templates have been completed and the development of GOCC Monitoring System (GMS) is
underway. A database buildup for the GMS is on-going for selected priority GOCCs and the
social security institutions.
ASSESSMENT OF PFM
(2016 PEFA FINDINGS)
 Budget Reliability. Large variances were noted in 2012 and 2014 which in turn affected fiscal discipline. Such lack
of credibility increases the risk for shortfalls in funding of priority government expenditures. Improvements in
budget outcomes will be especially important with government’s plan to increase social service expenditures in the
PDP 2017-2022.
 Transparency of public finances.
 Policy-based fiscal strategy and budgeting. The shift to an outcome-based performance-informed budget helped
tighten the alignment of spending with desired socioeconomic outcomes and measurable outputs.
 Predictability and control of budget execution. Audit reports of the Commission on Audit (CoA) are often qualified
with sometimes adverse opinions and disclaimers issued. Some of the issues raised included compliance with
internal controls and the integrity of financial information presented. While procurement processes rated well, a large
portion did not follow a competitive process. Other areas in need of strengthening include improved internal audit
effectiveness through better resourcing and an independent reporting mechanism, inclusion of accounts for foreign-
funded projects in the treasure single account systems (TSA), and an effective regular process for capturing aging
and arrears in both revenues and expenditures to mitigate risk to fiscal discipline.
ASSESSMENT OF PFM
(2016 PEFA FINDINGS)

 Accounting and reporting. A lack of necessary controls to ensure data integrity, a delay in
timely submission of reports and the lack of electronic reporting mechanisms have resulted in
qualified audit opinions for most departmental annual accounts. . Improvements are expected
from the electronic New Government Accounting Systems (eNGAS) which will provide
computerized accounting solutions. The system has been rolled out to a number of agencies and
is going through further development and updating. Eventually, CoA should be able to issue a
whole of government audit opinion.
 External scrutiny and audit. While a strong external audit performance was noted, there was a
local of a complete revenue audit despite the requirement for Congress to review and approve
the annual budget.
ASSESSMENT OF ACCOUNTING & AUDIT
(GIFMIS REFORMS)

• GIFMIS is a major reform output of the PFM Reform Roadmap, which seeks to strengthen
fiscal discipline, transparency and accountability for improved public service delivery.
• It aims to harmonize and improve PFM business processes and rules toward making reliable
financial information and analysis available to executives, managers and staff in the line and
oversight agencies.
• The PFM Committee approved the GIFMIS design in April 2013 which providing the basis for
the government to procure a commercial off-the-shelf solution.
• The PFM agencies implemented the prerequisites for GIFMIS – TSA, UACS, Revised Chart of
Accounts, Performance-Informed Budgeting framework, and improved business processes
towards a ‘go live’ pilot of GIFMIS in October 2015.
ASSESSMENT OF REPORTING AND
TRANSPARENCY

ONLINE FINANCIAL REPORTING

• In 2015, COA has developed online web-based application systems, the Annual Financial
Reposting System and the Budget and Financial Accountability Reporting System.
• These systems facilitate the efficient submission of the AFRs and BFARs of national
government agencies
TRANSPARENCY
• The government instituted reforms that allows for more transparency in government operations
and over the use of public funds.
ASSESSMENT OF REPORTING AND
TRANSPARENCY

INITIATIVES INTRODUCED TO PROMOTE GREATER FISCAL TRANSPARENCY

AND PROVIDE CITIZENS WITH GREATER ACCESS TO INFORMATION ON PUBLIC
FINANCIAL MANAGEMENT:
• Transparency seal
• Improved Budget Reporting
• The People’s Budget
• Open Budget Data
GOVERNMENT’S STRATEGY

1. Philippine Development Plan

2. PFM Reform Roadmap
 A comprehensive reform agenda, overseen by a PFM Committee, which seeks to clarify,
simplify, improve and harmonize the financial management processes and information
systems of the public sector.
 DESIRED RESULT: The national government is able to maintain fiscal discipline, allocate
funds efficiently, and effectively delivery public services.
3. LGU PFM Reform
RECENT INITIATIVES:
BUDGET AND TREASURY MANAGEMENT
SYSTEM
• It was launched in December 2015, will develop, operate, and maintain a new system that will link the financial
processes of the DBM and the DOF-BTr.
• It is an integrated, web-based information management system that will replace the existing budget management,
execution, accounting and reporting systems to be used initially by the Department of Budget and Management
(DBM) and the Bureau of the Treasury (BTr) under the Department of Finance for budget execution and
accountability. 
• The objective of implementing BTMS is to improve convenience, efficiency, accuracy and timeliness in fiscal
management and reporting through the establishment of a common, integrated system covering budget execution
and reporting in the oversight agencies the DBM and the BTr.
• EXPECTED OUTPUT: The Budget and Treasury Management System (BTMS) will replace the existing
disintegrated budget management, treasury and cash management, accounting and reporting systems used by
DBM and BTr & spending agencies for budget execution and accountability. It will provide a sustainable
government resource planning solution that is extensible, flexible thereby supporting a range of public financial
requirements, and adaptable to reform and modernization.
RECENTINITIATIVES:
BUDGET AND TREASURY MANAGEMENT
SYSTEM
INVESTMENT TARGETS
2017 2018 2019 2020 2021 2022 TOTAL
36,353,000.00 277,725,645.21 216,799,491.11 187,000,004.38 31,166,667.40 31,166,667.40 780,211,475.50