Presentation on theme: "MS. RHUNNA CATALAN Chief Accountant for Undersecretary Francisco M. Varela The Challenges to Financial Reforms: The Department of Education Experience."— Presentation transcript:
MS. RHUNNA CATALAN Chief Accountant for Undersecretary Francisco M. Varela The Challenges to Financial Reforms: The Department of Education Experience
Presentation Outline I.The Department of Education (DepEd): A Large and Complex Bureaucracy II.Improving Financial Management III.Our Continuing Challenges IV.Moving Forward 2
I. THE DEPARTMENT OF EDUCATION: A Large and Complex Bureaucracy
4 Inclusive Growth and Poverty Reduction Equitable Access to Adequate Quality Societal Services and Assets Access to Basic Education Improved Quality of Education Improved 1 Public Kindergarten & Elementary Education Services 2 Public Secondary Education Services 3 Alternative Learning System Services 4 Basic Education Sector Managemen t Services 5 Regulatory and Devt. Services 6 Govt. Assist. to Students & Teachers in Private Educ. Services Major Final Output (MFOs) Organizational Outcomes Knowledge, skills, attitude and values of Filipinos to lead productive lives enhanced The DepEd is responsible for management and governance of the Phil basic education system. Filipino Artistic & Cultural Traditions Preserved & Promoted 8** Book Industry Devt. Services 7 Informal Education Services - Cultural Outreach Services (PHSA) - Children Television Devt. Services Sub-Sector Outcomes Sector Outcomes Societal Goal * 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 industry 4
Global and national initiatives guide the DepEd in the formulation of its goals, policies and strategies. Education For All / Millennium Development Goals Philippine Development Plan Basic Education Sector Reform Agenda (BESRA): school-based management, improvement in teaching and learning quality, among others K to 12 Reform Program and the President’s 10-Point Basic Education Agenda o Universal Kindergarten Education (RA No. 10157) o 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. 5
As mandated by the Phil Constitution, it receives the largest share (12-15%) of the National Budget. 6
7 Schools Division Offices Elementary Schools* Private Secondary Schools* Private = 1 = 16 + 1 ARMM = 46,137 = 7,634 = 12,670 = 5,200 = 203** = 58,807 Schs. Public: 45,973 (78%) Private:12,834 (22%) Central Office 83% 17% 59% 41% No. of Districts Regional Offices = 2,611 *No. of schools based on EBEIS School Year 2011-2012 **Including16 newly-created divisions Public * = 38,503 Public * = 7,470 = 1.62M = 14.91M = 16.53M = 1.41M = 5.58M = 6.99M = 23.52M enrollees Public: 20.49M (87%) Private: 3.03M (13%) It is the largest government bureaucracy with a decentralized management framework.
The 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. Region Develop 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. Division Prepare 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 8
II. FINANCIAL MANAGEMENT INITIATIVES OF THE DEPED
Challenges in Managing DepEd Resources 10 Lack of resources at the school level Disjointed planning and budgeting Weak internal controls Lack of finance personnel Issues with absorptive capacity Difficulty of collecting accurate data/repor ts Difficulty of monitoring fund sources/ releases Delays in payment of teacher salaries
1. Efforts to improve the direct release of funds to schools 11 Legal Basis: o 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. o DBM-DepED Joint Circular No.2004-1on the direct release of funds to the DepEd Regional Offices and Implementing Units Success 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.
12 1. 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.
2. Efforts to improve payroll management 13 As of June, 2012 REGION TOTAL # OFATM-Paid% EMPLOYEES * ATM/TOTAL I - Ilocos Region 32,04619,11559.65% II - Cagayan Valley 21,04213,47964.06% III - Central Luzon 52,05550,38896.80% IVA - CALABARZON 53,00628,63154.01% IVB - MIMAROPA 17,484 100.00% V - Bicol Region 38,37738,00299.02% VI - Western Visayas 38,567 100.00% VII - Central Visayas 39,04838,98199.83% VIII - Eastern Visayas 30,98529,39394.86% IX - Zamboanga Peninsula 26,6377,88329.59% X - Northern Mindanao 24,630 100.00% XI - Davao Region 20,418 100.00% XII - SOCSKSARGEN 21,687 100.00% Cordillera Administrative Reg 11,85610,37687.52% CARAGA Region 13,214 100.00% National Capital Region 50,424 100.00% TOTAL 491,476422,67286.00% * Excludes Central Office and ARMM
2. Efforts to improve payroll management 1993: GAA called for the decentralization of the DepEd payroll system to: o (1) shorten payroll processing, o (2) minimize, if not eliminate, payroll processing errors highlighted by COA audit observations, and o (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 2006 2002: 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, 2009. 7 out of 16 regions are fully implementing the ATM payroll system. 14
3. Increasing the quantity and quality of financial management personnel 15 REGION DIVISIONS WITH AC SEC. SCHOOLS/Iu s TOTAL WITH AGENCY CODES BOOKKEEPER DISB. OFFICER TEACHERS DESIGNATED AS FIN'L STAFF TOTAL FINANCIAL STAFF I1411913388 62238 II89410274 40188 III17232249217 30464 IV A15243258227 32486 IV B7758266 18150 V13124137119 10248 VI17394411108 572788 VII15110125102 16220 VIII10849458 52168 IX9667558 16132 X13607337 46120 XI99810770 56196 XII9657461 8130 XIII911712627 180234 CAR7424942 084 NCR15156171132 48312 187207922661486 11864158
4. 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. 16
5. 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. 17
5. 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. 18
5. 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. 19
III. OUR CONTINUING CHALLENGES
Systemic challenges need longer-term and broader solutions. Structural rigidity: reforms do not immediately transform o Organizational capacity needs to be enhanced (in terms of quantity and quality) o Culture of centralized control still persists. Innovation needs to be encouraged and nurtured. o DepEd systems remain fragmented, paper-based and labor- intensive. Reforms need external support and cooperation: o Report requirements could be rationalized to ease burden on field personnel. o Need buy-in of government partners in pushing for equity-based financing and the adoption of the DepEd Medium-Term Expenditure Plan. (MTEP) o Need to track funding from sources apart from the GAA such as LGU’s Special Education Fund and private donations. o Implementation of the DepEd FMIS hinges on GIFMIS roll-out. 21
IV. MOVING FORWARD
Addressing Structural Rigidity Establishment of Regional Account Management Teams Deployment of additional finance personnel and clustering of non-IUs Roll-out of interim systems such as the Budget Monitoring System and Disbursement Monitoring System Capacity-building to build managerial talent on the ground Institutionalization of bottom- up budgeting and planning. Working with Partners to Institutionalize Reforms On-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 partnerships Close coordination with PFM Committee re GIFMIS dev’t 23