1. PROJECT UPDATES As of May 2014 Support to the Local Government Units for More Effective and Accountable Public Financial Management (LGU PFM 2 Project) This Project is funded by the European Union and implemented by the Government of the Philippines

2. Outline of Presentation Status of the First Operational Programme Estimate (OPE 1) Next Steps under OPE 1 The 2 nd Operational Programme Estimate (OPE 2)

3. DBM 7 DBM 7 DILG 7 DILG 7 BLGF 5 BLGF 5 Status of OPE 1 NINETEEN (19) MAJOR ACTIVITIES UNDER OPE 1

4. OPE 1 Activities (19) Develop LGU PFM Reform Policy Agenda & Action Plan Strengthen Capacity of Regional Offices Update/Roll-out JMC 1 Institutionalize PFMAT & PFMIP Expand & Enhance Analytical & Diagnostic Tools & Use of eSRE Strengthen Capacity of LGU Policy Units in Oversight Agencies Expand & Enhance Key Treasury & Assessment Manuals Exposure Workshops & Pilot Implementation of eSRE ToT on Key Treasury & Assessment Manuals eSRE-based Treasurers’ Performance Rating System Develop BuB Portal Update Guidelines on CSO Accreditation Harmonize BuB in the Local Planning Process Assess Implementation of RA 9184 at LGU Level using APCPI Link Performance Systems Develop System for Consolidation of Barangay F/S Enhance CSO Participation in Budget Process & Procurement Develop PFM Leadership Award Roll-out CDP Manual KRA 1: ENHANCED CAPACITY OF OVERSIGHT AGENCIES KRA 2: STRENGTHENED LOCAL CAPACITY IN FISCAL & EXPENDITURE MANAGEMENT KRA 3: STRENGTHENED ACCOUNTABILITY & TRANSPARENCY DBM DILG BLGF LEAD AGENCY

5. Completed Activities (4) Develop LGU PFM Reform Policy Agenda & Action Plan Strengthen Capacity of Regional Offices Update /Roll-out JMC 1 Institutionalize PFMAT & PFMIP Expand & Enhance Analytical & Diagnostic Tools & Use of eSRE Strengthen Capacity of LGU Policy Units in Oversight Agencies Expand & Enhance Key Treasury & Assessment Manuals Exposure Workshops & Pilot Implementation of eSRE ToT on Key Treasury & Assessment Manuals eSRE-based Treasurers’ Performance Rating System Develop BuB Portal Update Guidelines on CSO Accreditation Harmonize BuB in the Local Planning Process Assess Implementation of RA 9184 at LGU Level using APCPI Link Performance Systems Develop System for Consolidation of Barangay F/S Enhance CSO Participation in Budget Process & Procurement Develop PFM Leadership Award Roll-out CDP Manual KRA 1: ENHANCED CAPACITY OF OVERSIGHT AGENCIES KRA 2: STRENGTHENED LOCAL CAPACITY IN FISCAL & EXPENDITURE MANAGEMENT KRA 3: STRENGTHENED ACCOUNTABILITY & TRANSPARENCY DBM DILG BLGF LEAD AGENCY

6. Ongoing Activities (13) Develop LGU PFM Reform Policy Agenda & Action Plan Strengthen Capacity of Regional Offices Update/Roll-out JMC 1 Institutionalize PFMAT & PFMIP Expand & Enhance Analytical & Diagnostic Tools & Use of eSRE Strengthen Capacity of LGU Policy Units in Oversight Agencies Expand & Enhance Key Treasury & Assessment Manuals Exposure Workshops & Pilot Implementation of eSRE ToT on Key Treasury & Assessment Manuals eSRE-based Treasurers’ Performance Rating System Develop BuB Portal Update Guidelines on CSO Accreditation Harmonize BuB in the Local Planning Process Assess Implementation of RA 9184 at LGU Level using APCPI Link Performance Systems Develop System for Consolidation of Barangay F/S Enhance CSO Participation in Budget Process & Procurement Develop PFM Leadership Award Roll-out CDP Manual KRA 1: ENHANCED CAPACITY OF OVERSIGHT AGENCIES KRA 2: STRENGTHENED LOCAL CAPACITY IN FISCAL & EXPENDITURE MANAGEMENT KRA 3: STRENGTHENED ACCOUNTABILITY & TRANSPARENCY DBM DILG BLGF LEAD AGENCY

7. Activities Not Yet Started (2) Develop LGU PFM Reform Policy Agenda & Action Plan Strengthen Capacity of Regional Offices Update /Roll-out JMC 1 Institutionalize PFMAT & PFMIP Expand & Enhance Analytical & Diagnostic Tools & Use of eSRE Strengthen Capacity of LGU Policy Units in Oversight Agencies Expand & Enhance Key Treasury & Assessment Manuals Exposure Workshops & Pilot Implementation of eSRE ToT on Key Treasury & Assessment Manuals eSRE-based Treasurers’ Performance Rating System Develop BuB Portal Update Guidelines on CSO Accreditation Harmonize BuB in the Local Planning Process Assess Implementation of RA 9184 at LGU Level using APCPI Link Performance Systems Develop System for Consolidation of Barangay F/S Enhance CSO Participation in Budget Process & Procurement Develop PFM Leadership Award Roll-out CDP Manual KRA 1: ENHANCED CAPACITY OF OVERSIGHT AGENCIES KRA 2: STRENGTHENED LOCAL CAPACITY IN FISCAL & EXPENDITURE MANAGEMENT KRA 3: STRENGTHENED ACCOUNTABILITY & TRANSPARENCY DBM DILG BLGF LEAD AGENCY

8. Status of OPE 1 Statement or caption As of April 30, 2014:

9. Next Steps under OPE 1 Statement or caption Finalize and Approve LGU PFM Reform Roadmap & Implementation Strategy Consultation Workshops on the Handbook on CSO Participation in the Budget Process Continue preparatory work on CDP Guide Roll-out Procurement Observers’ Guide

10. Next Steps under OPE 1

11. Focuses CapDev Interventions on Oversight Agencies Aligned with the LGU PFM Reform Roadmap Builds on the Gains of OPE 1 Lays down the Foundation for the Roadmap Provides TA & Logistic Support to Focus LGUs The 2nd Operational Programme Estimate (OPE 2)

12. Builds on the Gains of OPE 1 Covers implementation of 14 out of the 19 activities under OPE 1 Based on the Refined Project Logframe Salient Features of OPE 2

13. Aligned with the LGU PFM Reform Roadmap & Implementation Strategy Project Purpose and Objective are consistent with Roadmap Goal & Vision Salient Features of OPE 2

14. The Roadmap & LGU PFM 2 Project “An open and transparent LGU PFM System that is stable and sustainable, renders financial compliance, underpins efficient and effective delivery of services, ensures the highest level of accountability and provides genuine citizens’ participation.” GOAL “An LGU service delivery system that lowers the cost of doing business, stimulates private investments, generates employment and income opportunities, improves welfare levels for LGU constituents and accelerates local economic growth.” VISION “To contribute to the achievement of the Millenium Development Goals (MDGs) and poverty reduction in the Philippines, in line with the 2011-2016 Philippine Development Plan, through improved public finance management resulting in improved delivery of basic services by local governments. OBJECTIVE “To enhance the capacity of local government units to generate revenue and to allocate and spend public funds more effectively and efficiently.” PURPOSE

15. Focuses CapdDev Interventions on Oversight Agencies (OAs) Covers LGU Policy Units, PSC/PTWG/PTF/PTs & Regional Inter-Agency Teams (RIATs) Builds convergence and coordination among OAs Salient Features of OPE 2

16. Lays down the foundation for the implementation of the Roadmap Supports the transition structure for the implementation of the Roadmap, i.e. from PSC & RIATs to National and Regional Inter-Agency Teams Salient Features of OPE 2

17. Provides TA & Logistic support to focus LGUs Will support PFMIP implementation in one LGU per Region (17, including ARMM) Mechanism for checking effectiveness of capdev interventions for OAs Salient Features of OPE 2

18. Activities under OPE 2 Develop LGU PFM Reform Policy Agenda & Action Plan Strengthen Capacity of Regional Offices Update/Roll-out JMC 1 Institutionalize PFMAT & PFMIP Expand & Enhance Analytical & Diagnostic Tools & Use of eSRE Strengthen Capacity of LGU Policy Units in Oversight Agencies Expand & Enhance Key Treasury & Assessment Manuals eSRE-based Treasurers’ Performance Rating System Enhance the BOM Harmonize GPBP in the Local Planning Process Roll-out APCPI to LGUs Enhance Indicators for SGLG / LGPMS Enhance GPBP Portal Enhance Local Fiscal Monitoring System KRA 1: ENHANCED CAPACITY OF OVERSIGHT AGENCIES KRA 2: STRENGTHENED LOCAL CAPACITY IN FISCAL & EXPENDITURE MANAGEMENT KRA 3: STRENGTHENED ACCOUNTABILITY & TRANSPARENCY DBM DILG BLGF LEAD AGENCY Enhance BPLS System Develop Tools for Linking Planning-Programming- Budgeting-M&E Enhance eBudget System Develop the Internal Audit Manual for LGUs Develop LEE Guidebook Enhance CSO Participation

19. Activities from OPE 1 (14) Develop LGU PFM Reform Policy Agenda & Action Plan Strengthen Capacity of Regional Offices Update/Roll-out JMC 1 Institutionalize PFMAT & PFMIP Expand & Enhance Analytical & Diagnostic Tools & Use of eSRE Strengthen Capacity of LGU Policy Units in Oversight Agencies Expand & Enhance Key Treasury & Assessment Manuals eSRE-based Treasurers’ Performance Rating System Enhance the BOM Harmonize GPBP in the Local Planning Process Roll-out APCPI to LGUs Enhance Indicators for SGLG / LGPMS Enhance GPBP Portal Enhance Local Fiscal Monitoring System KRA 1: ENHANCED CAPACITY OF OVERSIGHT AGENCIES KRA 2: STRENGTHENED LOCAL CAPACITY IN FISCAL & EXPENDITURE MANAGEMENT KRA 3: STRENGTHENED ACCOUNTABILITY & TRANSPARENCY DBM DILG BLGF LEAD AGENCY Enhance BPLS System Develop Tools for Linking Planning-Programming- Budgeting-M&E Enhance eBudget System Develop the Internal Audit Manual for LGUs Develop LEE Guidebook Enhance CSO Participation

20. New Activities under OPE 2 Develop LGU PFM Reform Policy Agenda & Action Plan Strengthen Capacity of Regional Offices Update/Roll-out JMC 1 Institutionalize PFMAT & PFMIP Expand & Enhance Analytical & Diagnostic Tools & Use of eSRE Strengthen Capacity of LGU Policy Units in Oversight Agencies Expand & Enhance Key Treasury & Assessment Manuals eSRE-based Treasurers’ Performance Rating System Enhance the BOM Harmonize GPBP in the Local Planning Process Roll-out APCPI to LGUs Enhance Indicators for SGLG / LGPMS Enhance GPBP Portal Enhance Local Fiscal Monitoring System KRA 1: ENHANCED CAPACITY OF OVERSIGHT AGENCIES KRA 2: STRENGTHENED LOCAL CAPACITY IN FISCAL & EXPENDITURE MANAGEMENT KRA 3: STRENGTHENED ACCOUNTABILITY & TRANSPARENCY DBM DILG BLGF LEAD AGENCY Enhance BPLS System Develop Tools for Linking Planning-Programming- Budgeting-M&E Enhance eBudget System Develop the Internal Audit Manual for LGUs Develop LEE Guidebook Enhance CSO Participation

21. Make it easier to change the pictures: use the Selection Pane to temporarily hide a Picture Placeholder. (Home tab, Select, Selection Pane). Click the eye icon to hide or show an object. To change a sample image, select the picture and delete it. Now click the Pictures icon in the placeholder to insert your own image. If you don’t see the Pictures icon, click the Reset button (Home tab, Slides, Reset). The animation is already done for you; just copy and paste the slide into your existing presentation. Sample pictures courtesy of Bill Staples. Continue with Information, Education and Communication (IEC) Activities for the Project TOTAL OF TWENTY ONE (21) MAIN ACTIVITIES UNDER OPE 2

22. KEY RESULT AREA 1: ENHANCED CAPACITY OF OVERSIGHT AGENCIES OPE 2 Budget CATEGORYPESOEURO 1.SERVICES Technical AssistancePhp 65,532,440.00€1,066,470.00 2.SUPPLIES Equipment, Software31,600,000.00514,256.00 Publications9,660,000.00157,206.00 3.OPERATING COSTS Events157,144,000.002,557,349.00 Other Operating Costs4,898,467.0079,717.00 4.IEC Project Information, Education and Communication Materials and Mass Media Campaigns 3,200,000.0052,077.00 5.CONTINGENCIES Contingencies2,065,025.0033,606.00 GRAND TOTALPhp 274,099,932.00€4,460,681.00

23. THANK YOU Support to the Local Government Units for More Effective and Accountable Public Financial Management (LGU PFM 2 Project) This Project is funded by the European Union and implemented by the Government of the Philippines