LGU PFM REFORMS IN

CENTRAL VISAYAS
DBM-DILG-DOF-NEDA JMC No. 2015-1 dtd Feb. 24,
2015:
1. Adoption of the LGU Public Financial Management Reform Roadmap
and Implementation Strategy: as primary sources of strategies
for LGUs in designing and implementing their Public Financial
Management Improvement Plans (PFMIPs)

2. Establish the Institutional arrangements for strengthening interface

and coordination between LGUs and Oversight Agencies, among
the OAs, and sustaining the PFM reforms contained in the Roadmap
DBM-DILG-DOF-NEDA JMC No. 2015-1 dtd Feb. 24,
2015:
RIAT Functions:

1. Shall primarily roll-out the PFM Reforms to the LGUs and provide
technical assistance in the design and implementation of the LGUs
PFMIPs;

2. Shall undertake measures to continually strengthen coordination and

convergence among the OAs;

3. DBM takes the lead for the duration of the EU funded project which
concluded on June 30, 2016. Thereafter, RIAT may agree among
themselves which OA will take the lead.
DBM-DILG-DOF-NEDA JMC No. 2015-1 dtd Feb. 24,
2015:

Local Chief Executives (LCEs):

1. Shall establish the LGU PFM Team composed of: LCE or his/her
representative, and the Department Heads of the Budget, Treasury,
Accounting, Planning and Development, Assessment, General Services
Office and the Chair of the BAC, among others.

2. The LGU PFM Team shall:

2.1 undertake regular PFM Assessment;
2.2 design, sequence and lead in the implementation of PFM
improvement measures as contained in the PFMIP
 STATUS
ON PFM ASSESSMENT
(2013-2015)
PUBLIC FINANCIAL
MANAGEMENT

System of rules,
procedures and
practices for
government to
manage public
finances
Goals of Public Financial Management

Strategic
Aggregate allocation of
Fiscal Resources
Discipline
Efficient
Service
Delivery

PFM
PUBLIC FINANCIAL MANAGEMENT AND GOOD
GOVERNANCE

GOVERNANCE

Open and Orderly PFM System

PUBLIC FINANCIAL MANAGEMENT AND GOOD
GOVERNANCE

GOVERNANCE

Open and Orderly PFM System

PFM ASSESSMENTS UNDERTAKEN on 7
Critical Dimensions (2013-2015)

Policy based budgeting,

Citizens' participation,

Comprehensiveness and
Overall Result: transparency
Internal and external
audit,
2.85
Accounting, recording
and reporting,
Credibility of the budget,

Predictability and control

in budget execution,
 RESULTS OF THE PFM ASSESSMENTS
UNDERTAKEN BY THE LGUs-Region VII

HIGHEST Policy based budgeting,

Citizens' participation, 2.41
3.44

LOWEST Comprehensiveness and

Internal and external transparency, 3.36
Overall Result:
audit, 1.94

2.85
Accounting, recording
and reporting, 2.77
Credibility of the budget,
3.28

Predictability and control

in budget execution, 2.74
 Weakest CDs (P/C/M)
Score: 1.94 Score: 2.41

INTERNAL & POLICY

EXTERNAL BASED
AUDIT BUDGETING
• Strong link between AIP and
• Most LGUs do not have Budget but weak linkage
Internal Audit Service among development plans
(IAS) Units (PDPFP/CDP-LDIP-AIP)*
• No internal audit reports *CDP not prepared by most LGUs
which are prepared for
management to act upon • LEEs not financially self-
reliant
• Settlement of
disallowances and • Only 1 to 2 PFM
compliance with audit Improvement Policies
recommendations by the included in the Budgets
LGUs are low
 Weakest CDs (P/C/M)
Score: 2.74 Score: 2.77

PREDICTABIL ACCOUNTING,
ITY &
CONTROL IN RECORDING
BUDGET & REPORTING
EXECUTION
• Slow detection of irregularities
• Most LGUs have tax in financial transactions due
maps but are not mainly to bank reconciliations
updated not being prepared in “real
• Some LGUs have time”
computerized tax • Poor quality of financial
database but are not reports due to limitations in
linked among relevant the number & competence of
offices in the LGU staff, & the use of manual
system for recording &
reporting of financial
transactions
 Strong PFM Areas / CDs (P/C/M)
Score: 3.28
CREDIBILITY CREDIBILITY
OF THE OF THE
BUDGET BUDGET
• Actual local revenue • Obligations BUR
collections compared (allotment vs obligations)
with estimated revenues which ranges 85% to
in the budget of most 90%
LGUs ranges from 90%
to 100%
• Disbursements BUR
relatively high with a
percentage rating that
ranges 95% to 100%,
however, needs
improvement when it
comes to
 Strong PFM Areas / CDs (P/C/M)
Score: 3.36 Score: 3.44

COMPREHEN CITIZENS’
SIVES &
TRANSPAREN PARTICIPATIO
CY N
• LGUs are better at • The CSO accreditation
ensuring that budget process in LGUs is strong
information as attached however, the degree of CSO
to the AOs covering the participation in the budget
Budget is comprehensive process still need to be
improved
• Most LGUs are 100%
compliant as to the
posting of reports
pursuant to FDP of DILG
 Overall State of the PFM Systems of
136 LGUs in Region VII
Critical Dimensions

3.44
3.36
3.28

2.74 2.77

2.41

1.94

Policy based budgeting Comprehensiveness and Credibility of the budget Predictability and control Accounting, recording Internal and external Citizens' participation
transparency in budget execution and reporting audit

Overall PFMAT score of 2.85

 Trajectory of State of PFM System of LGUs in
Region VII (PCM)
Mean Score
CD Mean Score (FYs 2011
Critical Dimension (CD) (FYs 2013 – 2015 Re-
No. – 2013 Assessment)
Assessment)

1 Policy based budgeting 2.15 (2) 2.41 (2)

2 Comprehensiveness and transparency 2.93 (5) 3.36 (6)

3 Credibility of the budget 3.21 (7) 3.28 (5)

4 Predictability and control in budget execution 2.59 (4) 2.74 (3)

5 Accounting, recording and reporting 2.39 (3) 2.77 (4)

6 Internal and external audit 1.58 (1) 1.94 (1)
7 Citizens' participation 3.20 (6) 3.44 (7)
Overall PFMAT Mean Score 2.58 2.85 (10% increase)

Overall PFMAT score of 2.85 (between 2.0 and 2.9) across LGUs indicate that the
elements of an open and orderly PFM system are not complete but what are in place are
fully operational.
 Trajectory of State of PFM Assessment and Re-Assessment of LGUs in
Region VII
7 Mean Score (FYs 2013
– 2015 Re-
Assessment)
6

5
Axis Title

4
Mean Score (FYs 2011
3 – 2013 Assessment)

0
Policy based budgeting Comprehensiveness Credibility of the Predictability and Accounting, recording Internal and external Citizens' participation
and transparency budget control in budget and reporting audit
execution
 Rank of Weakest Critical Dimension
Rank as PFM Concern
CD
Critical Dimension (CD)
No.
Provinces HUCs Cities Municipalities

1 Policy based budgeting 4 4 2 2

2 Comprehensiveness and transparency 7 6 6 5
3 Credibility of the budget 3 1 4 6
Predictability and control in budget
4 execution 2 5 5 4
5 Accounting, recording and reporting 5 2 3 3

6 Internal and external audit 1 3 1 1

7 Citizens' participation 6 6 7 7
 Breakdown of the Regional Level (PCM)
FYs 2013 – 2015 PFM Re-Assessment

Negros
CD Bohol Cebu Siquijor AVERAGE
Critical Dimension (CD) Oriental
No. (PCM) (PCM) (PM) (PCM)
(PCM)

1 Policy based budgeting 2.39 2.53 2.25 2.45 2.41

2 Comprehensiveness and transparency 3.59 3.23 3.20 3.43 3.36

3 Credibility of the budget 3.35 3.25 3.12 3.38 3.28
Predictability and control in budget
4 execution 2.82 2.75 2.69 2.70 2.74

5 Accounting, recording and reporting 3.04 2.51 2.68 2.83 2.77

6 Internal and external audit 2.05 1.75 1.63 2.33 1.94
7 Citizens' participation 3.65 3.40 3.42 3.29 3.44
Overall PFMAT Mean Score 2.98 2.78 2.71 2.92 2.85
 Breakdown per Province
FYs 2013 – 2015 PFM Re-Assessment

CD Province Province Province Province

Critical Dimension (CD) AVERAGE
No. A B C D

1 Policy based budgeting 2.67 3.33 2.83 2.56 2.85

2 Comprehensiveness and transparency 4.00 4.00 3.50 4.00 3.88

3 Credibility of the budget 2.83 2.50 3.00 3.00 2.83
Predictability and control in budget
4 execution 2.95 2.98 2.65 2.54 2.78

5 Accounting, recording and reporting 3.00 2.00 2.50 4.00 2.88

6 Internal and external audit 0.50 2.33 2.67 2.00 1.88
7 Citizens' participation 3.50 4.00 3.50 4.00 3.75

Overall PFMAT Mean Score 2.78 3.02 2.95 3.16 2.98

 Breakdown per City (Bohol and Negros Oriental)
FYs 2013 – 2015 PFM Re-Assessment

CD City City City City City City City

Critical Dimension (CD) 1 2 3 4 5 6 7
AVERAGE
No.
1 Policy based budgeting 3.17 2.58 2.83 2.17 2.00 2.55
Comprehensiveness and
2 transparency 2.00 2.00 4.00 2.50 3.50 2.80
3 Credibility of the budget 2.17 3.17 2.50 4.00 3.00 2.97
Predictability and control
4 in budget execution 2.94 3.42 2.83 2.47 3.37 3.01
Accounting, recording
5 and reporting 2.25 3.75 3.50 2.00 1.25 2.55
Internal and external
6 audit 2.00 3.33 1.67 1.00 3.00 2.20
7 Citizens' participation 4.00 4.00 4.00 3.00 3.50 3.70
Overall PFMAT Mean Score 2.65 3.18 3.05 2.45 2.80 2.83
 Breakdown per City (Cebu)
FYs 2013 – 2015 PFM Re-Assessment

City City City City City City

CD No. Critical Dimension (CD) 1 2 3 4 5 6
AVERAGE

1 Policy based budgeting 2.17 2.00 1.67 1.67 1.88

Comprehensiveness and
2 transparency 4.00 2.50 3.50 2.00 3.00
3 Credibility of the budget 2.83 3.50 1.50 3.33 2.79

Predictability and control in

4 budget execution 3.19 3.54 1.86 2.50 2.77
Accounting, recording and
5 reporting 2.50 3.50 2.50 0.50 2.25

6 Internal and external audit 0.67 2.17 0.67 1.83 1.34

7 Citizens' participation 3.00 4.00 3.00 3.00 3.25
Overall PFMAT Mean Score 2.62 3.03 2.10 2.12 2.47
 Breakdown per Highly Urbanized City (HUC)
FYs 2013 – 2015 PFM Re-Assessment
City City City
CD No. Critical Dimension (CD) AVERAGE
1 2 3

1 Policy based budgeting 2.44 2.75 1.75 2.31

Comprehensiveness and
2 transparency 4.00 4.00 4.00 4.00
3 Credibility of the budget 0.50 3.50 1.33 1.78

Predictability and control

4 in budget execution 2.14 3.60 1.75 2.50
Accounting, recording
5 and reporting 2.00 3.50 0.00 1.83
Internal and external
6 audit 1.50 2.83 1.50 1.94
7 Citizens' participation 4.00 4.00 4.00 4.00
Overall PFMAT Mean Score 2.37 3.45 2.05 2.62
 Breakdown per Municipality
FYs 2013 – 2015 PFM Re-Assessment

Negros
CD Bohol Cebu Siquijor
Critical Dimension (CD) Municipalities Municipalities
Oriental
Municipalities
AVERAGE
No. Municipalities

1 Policy based budgeting 2.38 2.60 2.14 2.43 2.39

2 Comprehensiveness and transparency 3.58 3.19 3.28 3.33 3.35

3 Credibility of the budget 3.37 3.40 3.17 3.45 3.35
Predictability and control in budget
4 execution 2.81 2.77 2.63 2.73 2.74

5 Accounting, recording and reporting 3.10 2.58 2.62 2.60 2.73

6 Internal and external audit 2.02 1.76 1.61 2.39 1.95
7 Citizens' participation 3.65 3.38 3.34 3.17 3.39
Overall PFMAT Mean Score 2.99 2.81 2.68 2.87 2.84
 Status of PFMIP Implementation as of October 31, 2017
(Regional Level)
% of PFMIP % of PFMIP % of PFMI P
CD No. of PFMIP Proposal Proposal with initial Proposal not
Critical Dimension (CD) Score
No. Proposal Fully Implementation implemented
Implemented
1 Policy based budgeting 2.41 364 35% 48% 17%
Comprehensiveness and
2 transparency 3.36 105 59% 35% 6%
3 Credibility of the budget 3.28 154 36% 56% 8%
Predictability and control
4 in budget execution 2.74 462 30% 53% 17%
Accounting, recording
5 and reporting 2.77 189 39% 34% 47%
Internal and external
6 audit 1.94 239 15% 39% 46%
7 Citizens' participation 3.44 85 60% 34% 6%
2.85 34% 47% 18%
1,598 546 757 295
Status of LGUs’ PFMIP Implementation (Regional Level)
As of October 31, 2017

Not Implemented,
16.93%

Fully Implemented,
34.00%

Initially Implemented,
47.00%
Status of LGUs’ PFMIP Implementation per CD (Regional Level)
As of October 31, 2017
FI II NI

59% 60%
56%
53%
48% 47% 46%

39% 39%
35% 35% 36%
34% 34%
30%

17% 17%
15%

8%
6% 6%
 STATUS
ON PFM REPORTS SUBMISSION
(2015-2017)

Submission As of September 12, 2018

 LGUs who have submitted the
PFMAR FY 2015-2017
Bohol Cebu Negros Oriental Siquijor

Tagbilaran City Carmen Dumaguete

Buenavista
Catigbian
Clarin
Talibon
Valencia
 LGUs who have submitted the
PFMIP FY 2018 (or 2018-2020)
Bohol Cebu Negros Oriental Siquijor

Tagbilaran City Carmen Amlan

Buenavista
Clarin
Getafe
Loay
Talibon
Valencia
 LGUs who have submitted the
SB Resolution Adopting the PFMIP
Bohol Cebu Negros Oriental Siquijor

Tagbilaran City Carmen

Clarin
Loay
 LGUs who have submitted the
Annex A: Tracking Table
Bohol Cebu Negros Oriental Siquijor
Province of Bohol Loay Alcantara Moalboal Province of Negros Larena
Tagbilaran City Maribojoc Alcoy Oslob Oriental
Alburquerque Pilar Argao Pinamungajan Amlan
Alicia San Isidro Asturias Poro Ayungon
Buenavista San Miguel Badian Ronda Bacong
Calape Sierra Bullones Bantayan Samboan Bindoy
Carmen Sikatuna Barili Santa Fe Jimalalud
Catigbian Trinidad Boljoon Santander Mabinay
Clarin Tubigon Carmen Sibonga San Jose
Corella Valencia Catmon Sogod Sibulan
Cortes Compostela Tabuelan Sta. Catalina
Dauis Consolacion Tudela Valencia
Duero Cordova Carcar City Bais City
Inabanga Daanbantayan Cebu City Bayawan City
Lila Ginatilan Danao City Dumaguete City
Lapu-Lapu City
 LGUs who have submitted the
Export Files of Summary Tables and Data Tables
Bohol Cebu Negros Oriental Siquijor
Tagbilaran City Carmen Canlaon City
Getafe Catmon
Pres. C.P. Garcia Cordova
Valencia Poro
Santa Fe
Santander
Tudela
Mandaue City
Manuals produced under LGU PFM2
• The Local Government Units Public Financial Management Reform
Roadmap
• The Local Government Units Public Financial Management
Implementation Strategy
• Budget Operations Manual For Local Government Units 2016 Edition
• Manual on the Setting Up and Operations of Local Economic
Enterprises
• Internal Audit Manual For Local Government Units
• Handbook on the Participation of Civil Society Organizations in the
Local Budget Process
 - END -
Thank YOU! 