First Draft

DepEd Budget Strategy for 2013 onwards A. Plan and Budget Preparation
1. The enactment of both Kindergarten and K to 12 into Laws marks new milestones in Philippines Educations system which will change both the landscape and the quality of graduates it produces. The Universalization of Kindergarten and the additional 2 years in basic education sought to place the country at par with the international standards in terms of years of schooling and quality of graduates. These reforms along with new policies from oversight agencies that defines the new way of doing things in government which is grounded on the principle of good governance that links incentives to performance and greater transparency and accountability, among others. 2. Major policy Considerations. Pnoys Administration through DBM has instituted strategic reforms to improve the system of planning and budgeting to ensure that taxpayers money are judiciously and optimally utilized for common good. a) Organizational Performance Indicators Framework b) Medium Term Expenditure Framework c) Zero-Based Budgeting an approach to planning and decision-making which reverses the working process of traditional budgeting. Every line item of the budget must be approved, rather than only changes. During the review process, no reference is made to the previous level of expenditure. This process is independent of whether the total budget or specific line items are increasing or decreasing. d) Bottom-Up Budgeting e) No Continuing Appropriations
f) GAA as a budgetary release document with one year validity of appropriations

g) Civil Society Participation h) Performance Based Incentive System (PBIS) linking incentives to performance through the rationalization of incentives system which aims to reward performance of both the bureau/delivery unit and individual employee. It consists of Productivity Enhancement Incentive (PEI) and the Performance-Based Bonus (PBB). i) Gender and Development 3. These old and new policies rationalize and systematize the way agencies formulate plans and budgets, plan execution and performance reporting. The BuB and CSO participation are the two laudable new policies that safeguard relevance, alignment and greater transparency and accountability.

4. DepEd Strategic Directions, FY 2013-2016. To sustain the positive gains in key education indicators characterized by high participation, improving holding power of schools, improving achievement level and relevant policy reforms; and to address the remaining challenges the system is currently facing, DepEd shall continue to pursue the following thrust and directions for FY 2013-2016: j) Improve access to Basic Education by closing the gaps in basic education inputs, providing enough and appropriate level of Maintenance and Other Operating Expenses particularly to schools, reaching the underserved Indigenous Peoples, Muslim learners and out of school youth, strengthen the implementation of Alternative Delivery Modes, strengthen mechanisms for disaster preparedness, tighten implementation of child protection policy and strengthen partnership with DSWD for the 4Ps; k) Improve quality of learning and management through K to 12 Basic Education Program, provision of appropriate learning materials and tools, retooling of teachers and education managers, acceleration of School-Based Management System and system of accreditation, tighten system for results monitoring l) Strengthen internal system of governance by tightening and strengthening internal systems and processes supported by ICT, installation of results-based Performance Management System, Total Quality Management (TQM) and pursue anti-corruption efforts, m) Strengthen Partnerships through full engagement Civil Society Organizations in Education, strengthen Public-Private Partnerships initiatives, maximize Local Government contributions through Special Education Fund 5. To effectively deliver and achieve these strategic directions, new sets of policies will be in placed to make sure that all officials and employees of DepEd are in the same page particularly in the preparation of strategic and operational plans and budgets. 6. 4 Thematic Area Access, Efficiency, Quality and Governance shall be the 4 thematic areas to be followed in formulating plans, execution as well as performance reporting. All budget items shall be categorized in the 4 thematic areas and shall establish the relationship of each item in attaining the goal of each thematic area. 7. Conduct of Strategic Planning All DepEd operating units must go through strategic planning exercise which will cover FY 2014-2016. Each unit must define their strategic directions and establish its direct link to the overall strategic direction of DepED as an agency prior to operational planning. It shall contain the summary of the situational analysis which describes clearly the current situation of their area of influence highlighting the challenges and the proposed strategies how to address the challenges, presented by

thematic area and by MFO. Schools, Divisions and Regions shall prominently show consistency clear linkage of their proposed strategies in addressing the challenges. Specific and detailed instruction is attached to this order as attachment 1. 8. Conduct of Operational Planning bearing in mind the Strategic direction of DepEd, the result of situational analysis and the DBM policies on budgeting, all DepEd operational units including schools shall formulate their proposed programs and projects with corresponding proposed budget level to address the issues and challenges identified in situational analysis following the 4 thematic areas and MFO format. All budget proposals must include all possible sources of funds including SEF, among others. Specific and detailed instruction is attached to this order as attachment 2. For consistency, the primary source of data for situational analysis and program planning shall be the EBEIS, LIS and other functional information systems of DepEd. Data and information derived from other sources must be properly referenced. Starting FY 2014 budget preparation, the following line items currently being managed centrally shall be transferred to regions: 1. Alterative Delivery Mode (ADM) 2. Every Child A Reader Program (ECARP) 3. Multigrade (MG) 4. Basic Education Madrasah 5. TechVoc 6. Special Education (SPED) 7. Special Science Elementary Schools (SSES) 8. Engineering and Science Education Program (ESEP) 9. Alternative Learning System (ALS) 10. School Health and Nutrition Program 11. Human Resource Training and Development (HRTD) 12. School-Based Management Installation and Support (SBM) 13. Special Programs for Sports (SPS)/Special Program for the Arts (SPA) 14. Indigenous Peoples Education (IPEd) 15. School Sites and Titling 9. The regional Planning team together with their respective Divisions shall clearly establish the demand or the need to implement each program in the region/Division using the result of the situational analysis. The regional planning team shall identify the most relevant programs that will best address their pressing challenges. This would mean that some programs might not be relevant in the region. For instance, IP Education might not be relevant in the National Capital Region; instead, they probably need ADM or SBM. Central Office will be fielding well-trained teams of facilitators to regions to assist regions in the conduct of operational planning.

10. Other major budget items other than the 15 identified programs and projects that are largely driven by population and enrolment data and governed by existing national policies, shall still be managed by DepED Central Office following the planning standards and parameters approved by EXECOM. 11. Conduct of Internal Budget Hearing. An internal Budget Hearing shall be conducted every budget preparation year at all levels of governance to ensure relevance, alignment and consistency of all programs and projects being proposed. The Budget Committee (BudCom) shall hear the budget proposals of each delivery units (Bureau, Centers, Services and Units) at the central level and make decisions. This shall happen prior to the synchronized planning and budgeting. Regional Planning team headed by the regional director shall hear the budget proposals of each division and shall ensure that all proposals follow this guideline. This too shall happen prior to synchronized planning and budgeting. Specific and detailed rules is attached to this order as attachment 3. 12. Conduct of Synchronized Planning and Budgeting Exercise. After completing the process of operational Planning, a synchronized planning and budgeting exercise shall be conducted to ensure synchronicity of initiatives, relevance of programs, and alignment of purpose and complementation of all initiatives at levels towards attaining common goal. 13. Conduct of Post Planning Exercise. This shall be conducted once the National Expenditure Program (NEP) becomes available to make necessary adjustments and recalibration of budget items affected by act of Congress. This exercise shall focus on firming up DepEd budget through triangulation exercise to be conducted jointly by OPS, FMS and PS and shall produce the following budget execution documents: 1. Work and Financial Plan (WFP) 2. Monthly Cash Program (MCP) 3. Project Procurement Management Plan (PPMP) 14. WFP shall be submitted to OPS-PPD c/o the Chief of Division, MCP shall be submitted to Budget Division c/o the Chief of Division and PPMP shall be submitted to Procurement Service c/o the Service Director for consolidation and approval of BudCom. All submissions shall be both in print and digital format and must be signed by the Bureau, Service and Center Directors. 15. Planning Standards and Parameters. Programming of resources shall be strictly governed by the following standards and parameters:

Levels Kinder

Elementary

Junior HS

Senior HS

Standards and parameters Class size 25 students Shifts 2 25 students per teacher with each one teaching 2 shifts One learning package per class One workbook per student 1 seat per student 50 students per washroom Class size 45 pupils in Grades 1-6 in pure monograde schools; in multigrade schools 30 pupils per class consisting of two grades 1 teacher per class with teacher specialization in Grades 5-6 in pure monograde schools Adjustment factor for teacher specialization 5/3 2 shifts in grades 1 & 2 4 textbooks per pupil in Grades 1-2 & 7 textbooks per pupil in Grades 3-6 1 seat per student 50 students per washroom Class size 45 students 45 students per teacher Adjustment factor for teacher specialization 5/3 5 textbooks per pupil 1 seat per student 50 students per washroom Class size 40 students 40 students per teacher but with adjustment for teacher specialization

16. OPS and FMS shall ensure compliance to these standards in the determination of shortages and in the computation of budget requirements. Any proposed deviations for some reasons shall be defended by the proponents before the EXECOM for approval.

B. Budget Execution
17. Procedures for processing of financial transactions. To ensure maximum efficiency and optimal use of resources, an enhanced process shall be adopted in budget execution. As indicated in DepEd Order No. 25, series 2010, all claims against 2013 appropriations shall undergo processing to further synchronize program planning, budgeting and procurement activities of DepEd offices at the central level, ensure coherence with the strategic directions, as well as facilitate timely progress reporting. Attachments 4 and 5 show the process flow of transactions and the standard basis for evaluation presented in project quadrant. Attachment 3 shows the official stationary to be

used by all DepEd operating units in the preparation of their financial transactions. However, transactions like approval of vouchers for TEV (cash advance or reimbursements) and payment of bills shall go directly to Budget division for appropriate action. Regional and Division offices are also mandated to do a parallel system to ensure consistency. 18. Specialty clearance for transactions that require rigid compliance to technical standards or unique requirements, specialty clearances shall be required from requesting offices, to wit: Object of transactions/PAP New construction, major repairs, school furniture and related contracts Computers, ICT equipment and tools, communication equipment, development of databases and IS Textbooks, reference and other print materials Office equipment and furniture and other related items Surveys, researches and studies Student Testing and Assessment Large scale printing Source of Specialty Clearance Office of Planning Service Technical Service IMCS Administrative Service Office of Planning Service NETRC Technical Service

19. Specialty clearance shall dwell on completeness of technical requirements, appropriateness and reasonableness of cost and overall technical feasibility. The concerned to Budget Committee the enhanced guidelines and procedures and forms to operationalize this policy applicable to all levels of governance. Any request for authority not in compliance with items 15 and 16 shall be returned to proponents with notes. Budget Division shall require endorsement from OPS before processing such transactions. 20. Training, workshops, writeshops and other similar activities shall strictly adhere to the following standards: Budget Details
Venues

Standard policy
Government facilities including those managed by GOCCs shall be priority venue for any activities that require venue. Premium shall be given to existing DepED facilities such as RELCs, ECOTECH Center and Teachers Camp. Only when these facilities are not available or cannot accommodate large number of participants, private venues shall be considered Claim for per diem shall be based on the existing rules and regulation of COA, DBM and GAA special provisions, when provided. Passenger must demand for receipt once available and claim the actual fare.

Per Diem Taxi fare

Plane Fare Honorarium

Supplies and Materials Communication What %? Allowed or not? Contingencies - What basis? Any standard?

Lowest available rate upon purchase. Officials are allowed to a regular fare to allow room for schedule flexibility All DepEd officials and employees are not entitled to receive honoraria for DepEd initiated activities. Invited resource persons may be given honorarium subject to existing rules and regulations. 100 per participant???. 20% of the total estimated cost for supplies and materials is allowed for cash advance.

C. Performance Monitoring and Reporting

21. Given the 1 year validity of appropriations, a monthly progress monitoring shall be conducted primarily aim to track progress of implementation of all PAP, stir not moving items and check compliance to guidelines. OPS, FMS and PS shall establish strong link on Monitoring and Evaluation particularly in making sure that physical and financial accomplishments are generated on time and items for procurement are on track and monthly progress report is elevated to EXECOM and discussed in MANCOM particularly those matters that require RD intervention. 22. The BudCom Secretariat (OPS, FMS, PS), Regional and Division Planning and Finance Units are directed to submit monthly progress report every 5th day of each month to highlighting the physical and financial progress of PAPs being implemented including challenges and problems encountered and the recommended actions to be undertaken to address those challenges. Further, it is recommended that OPS, FMS and PS shall initiate regular coordination meetings to discuss issues arising out of PAPs being implemented by various offices, and to alert the concerned offices with their suggested actions to stir up implementation or to get the implementation back on track. All programs offices shall immediately respond to the recommendations of the BudCom Secretariat. 23. Report Submission. Region shall submit a consolidated monthly progress report which contains both physical and financial accomplishments to Central Office c/o the chief of Budget Division copy furnished the Chief of OPS-PPD. It shall be submitted in both print and digital copy duly signed by the heads of office (Directors of Bureau, Center, Service and Regional Directors). Incomplete report will not be included in the consolidation of report to be submitted to EXECOM. 24. This Order replaces the entire provisions of DepED Order No. 25, s. 2010. All orders and memoranda that are inconsistent herewith are hereby revoked and/or rescinded or modified accordingly. 25. For strict Compliance