Presentation on theme: "for Undersecretary Francisco M. Varela"— Presentation transcript:
1for Undersecretary Francisco M. Varela The Challenges to Financial Reforms: The Department of Education ExperienceMS. RHUNNA CATALANChief Accountantfor Undersecretary Francisco M. Varela
2Presentation OutlineThe Department of Education (DepEd): A Large and Complex BureaucracyImproving Financial ManagementOur Continuing ChallengesMoving Forward
3I. THE DEPARTMENT OF EDUCATION: A Large and Complex Bureaucracy
4The DepEd is responsible for management and governance of the Phil basic education system. Inclusive Growth and Poverty ReductionSocietal GoalEquitable Access to Adequate Quality Societal Services and AssetsSector OutcomesSub-Sector OutcomesKnowledge, skills, attitude and values of Filipinos to lead productive lives enhancedOrganizational OutcomesAccess to Basic Education ImprovedQuality of Education ImprovedFilipino Artistic & Cultural Traditions Preserved & PromotedMajor Final Output (MFOs)1Public Kindergarten & Elementary Education Services2Public Secondary Education Services3Alternative Learning System Services4Basic Education Sector Management Services5Regulatory and Devt. Services6Govt. Assist. to Students & Teachers in Private Educ. Services7Informal Education ServicesCultural Outreach Services (PHSA)Children Television Devt. Services8**Book Industry Devt. Services* Subject for refinement** This is an MFO of the National Book Development Board (NBDB), an attached agency of the DepEd, and does not contribute directly to the attainment of DepEd’s organizational outcomes. Initial recommendation is for the NBDB to be attached to the Department of Trade and Industry (DTI) since its mandate is to develop and promote the local publishing industry4
5Global and national initiatives guide the DepEd in the formulation of its goals, policies and strategies.Education For All / Millennium Development GoalsPhilippine Development PlanBasic Education Sector Reform Agenda (BESRA): school-based management, improvement in teaching and learning quality, among othersK to 12 Reform Program and the President’s 10-Point Basic Education AgendaUniversal Kindergarten Education (RA No )Additional 2 years of secondary education to enable graduates to develop competencies that will make them better prepared for higher education, the world of work, entrepreneurship and global opportunities.
6As mandated by the Phil Constitution, it receives the largest share (12-15%) of the National Budget.
7It is the largest government bureaucracy with a decentralized management framework. = 1Central Office= ARMMRegional Offices= 203**Schools Division Offices= 2,611No. of DistrictsElementary Schools*= 46,137= M83%Public *= 38,503= M17%Private= 7,634= MSecondary Schools*= 12,670= 6.99M59%Public *= 7,470= 5.58M41%Private= 5,200= 1.41M= 58,807 Schs.Public: 45,973 (78%)Private:12,834 (22%)= M enrolleesPublic: 20.49M (87%)Private: 3.03M (13%)*No. of schools based on EBEIS School Year**Including16 newly-created divisions
8The current processes in financial management in DepEd are rooted in Republic Act No.9155. Develop a regional basic education plan.Formulate, in coordination with RDCs, budgets to support the regional education plan.Plan and manage the effect and efficient use of personnel, physical and fiscal resources of the regional office.Manage the database and management information system of the region.RegionDevelop and implement division education development plans.Plan and maange the effective and efficient use of all personnel, physical and fiscal resources of the division.Monitor the utilization of funds provided by the national and local government to schools and learning centers.DivisionPrepare school improvement and annual improvement plans.Administer and manage all personnel, physical and fiscal resources of the school.Accept donations, gifts, bequests and grants for the purpose of upgrading teachers’ competencies, improving and expanding school facilities and providing instructional materials and equipment.School
9II. FINANCIAL MANAGEMENT INITIATIVES OF THE DEPED
10Challenges in Managing DepEd Resources Weak internal controlsDifficulty of collecting accurate data/reportsLack of resources at the school levelIssues with absorptive capacityDelays in payment of teacher salariesDisjointed planning and budgetingDifficulty of monitoring fund sources/ releasesLack of finance personnel
111. Efforts to improve the direct release of funds to schools Legal Basis:Section 10 of RA 9155 provides that the appropriations intended for regional and division offices are to be allocated directly and released immediately by DBM to the said offices.DBM-DepED Joint Circular No on the direct release of funds to the DepEd Regional Offices and Implementing UnitsSuccess of the School Based Management program under TEEP/SEDIP/BESRA.Prior to 2008, school MOOE were released either in cash or in kind. With the implementation of BESRA policies and reform thursts, full downloading of resources to schools was intensified.
121. Efforts to improve the direct release of funds to non-implementing units (elementary schools) Note: 2012 data is as of end of September while 2010 and 2011 data are as of end of December.
132. Efforts to improve payroll management As of June, 2012REGIONTOTAL # OFATM-Paid%EMPLOYEES *ATM/TOTALI - Ilocos Region32,04619,11559.65%II - Cagayan Valley21,04213,47964.06%III - Central Luzon52,05550,38896.80%IVA - CALABARZON53,00628,63154.01%IVB - MIMAROPA17,484100.00%V - Bicol Region38,37738,00299.02%VI - Western Visayas38,567VII - Central Visayas39,04838,98199.83%VIII - Eastern Visayas30,98529,39394.86%IX - Zamboanga Peninsula26,6377,88329.59%X - Northern Mindanao24,630XI - Davao Region20,418XII - SOCSKSARGEN21,687Cordillera Administrative Reg11,85610,37687.52%CARAGA Region13,214National Capital Region50,424TOTAL491,476422,67286.00%* Excludes Central Office and ARMM
142. Efforts to improve payroll management 1993: GAA called for the decentralization of the DepEd payroll system to:(1) shorten payroll processing,(2) minimize, if not eliminate, payroll processing errors highlighted by COA audit observations, and(3) make it easier for teachers to follow up issues with regard to their payroll.1995: DepEd memorandum establishing the Regional Payroll Services Unit; all regions had an RPSU by June 20062002: Decentralization of elementary school teachers’ payroll to the regional offices. As of June 2006, roll-out of elementary payroll system from Central Office to regions was completed.2001: Introduced the use of Automated Payroll Machine System. This was made compulsory with the issuance of DepEd Order No.8, out of 16 regions are fully implementing the ATM payroll system.
15TOTAL WITH AGENCY CODES TEACHERS DESIGNATED AS FIN'L STAFF 3. Increasing the quantity and quality of financial management personnelREGIONDIVISIONS WITH ACSEC. SCHOOLS/IusTOTAL WITH AGENCY CODESBOOKKEEPERDISB. OFFICERTEACHERS DESIGNATED AS FIN'L STAFFTOTAL FINANCIAL STAFFI141191338862238II8941027440188III1723224921730464IV A1524325822732486IV B775826618150V1312413710248VI394411108572788VII11012516220VIII845852168IX9132X60733746120XI981077056196XII6561130XIII11712627180234CAR4249NCR1561714831218720792266148611864158
164. Efforts to improve recording and booking of transactions 2006: The DepEd Central Office, Region VII RO and Region XI RO started using the eNGAS system. Meanwhile, Region IV-A outsourced the development of its financial management system in 2009.2006: Proper recording and booking of school buildings implemented by DPWH and other donated properties was observed through training of property and finance staff and strict compliance to various DepEd orders. As of 2011, about PhP 4.07 billion worth of school buildings were included in the books of DepEd.
175. Efforts to strengthen internal control and efficiency of operations 2008: The DepEd established its Internal Audit Service Unit as part of the BESRA reform package. Since its creation, it has conducted audit reports for key offices and major programs such as the Baguio Teachers Camp, GASTPE, and SBM.Early issuance of program guidelines resulted to the early/timely payment of fees (ex. GASTPE grants) and release of funds (ex. Subsidies to Regional Science HS). Starting 2011, various programs and projects adopted the use of multi-year guidelines lending predictability in budgeting and planning.
185. Efforts to strengthen internal control and efficiency of operations With the deployment and training of finance personnel and more intensive monitoring, the Department was able to improve liquidation of its cash advances.
195. Efforts to strengthen internal control and efficiency of operations DepEd is also working towards rolling out its various information systems – enhanced BEIS, Asset Management System, and HR Information System.The DepEd recently completed the development of the strategic design for its Financial Management Information System. It is working closely with the PFM Committee to integrate key features of the DepEd FMIS in the GIFMIS. On the interim, the DepEd is using its in-house developed budget monitoring and disbursement systems to cope with the monthly reporting requirements of oversight agencies.Planning and budgeting processes are being harmonized at the Central, Regional and Division levels. Triangulation activities are also undertaken to ensure alignment between planning of activities, budget availability and scheduling of procurement.
21Systemic challenges need longer-term and broader solutions. Structural rigidity: reforms do not immediately transformOrganizational capacity needs to be enhanced (in terms of quantity and quality)Culture of centralized control still persists. Innovation needs to be encouraged and nurtured.DepEd systems remain fragmented, paper-based and labor-intensive.Reforms need external support and cooperation:Report requirements could be rationalized to ease burden on field personnel.Need buy-in of government partners in pushing for equity-based financing and the adoption of the DepEd Medium-Term Expenditure Plan. (MTEP)Need to track funding from sources apart from the GAA such as LGU’s Special Education Fund and private donations.Implementation of the DepEd FMIS hinges on GIFMIS roll-out.
23Addressing Structural Rigidity Establishment of Regional Account Management TeamsDeployment of additional finance personnel and clustering of non-IUsRoll-out of interim systems such as the Budget Monitoring System and Disbursement Monitoring SystemCapacity-building to build managerial talent on the groundInstitutionalization of bottom-up budgeting and planning.Working with Partners to Institutionalize ReformsOn-going dialogue with DBM and COA counterparts to clarify and rationalize report requirements.Inter-agency TWG was established to refine and finalize DepEd MTEP.Joint Circular on the use of the Special Education Fund and development of an SEF manual is being pursued.Need to strengthen monitoring of public-private partnershipsClose coordination with PFM Committee re GIFMIS dev’t