LGU PFM

REFORM ROADMAP
AND
IMPLEMENTATION
STRATEGIES

DBM-DILG-DOF-NEDA JMC
No. 2015-01 dated February
24, 2015
-Adoption of the Reform
Roadmap and
Implementation Strategy

The LGU shall:

-Undertake regular
assessment of their PFM
systems
-Design and implement
responsive and technically
feasible PFMIPs using the
Roadmap and IS

 What is the Reform

Roadmap
Where are We Now
Where Do We Want to Go
How Do We Get There

 In line with its commitment to

walk the daang matuwid,
government has intensified its
efforts to rebuild public
institutions and enhance
policies, systems and tools,
including Public Financial
Management (PFM) systems.

 Paramount activity under

the EU-funded project,
Support to the LGUs for
More Effective and
Accountable PFM
otherwise known as the
LGU PFM 2 Project.

 It is a strategic guide on what the

LGUs want to do and achieve with
their PFM system in the immediate,
medium and long term periods to
achieve the desired end-state
(vision)

 It is complemented by an
Implementation Strategy which
is a well-designed action
program that details the
activities and timeframe to carry
out the Roadmap.

 Provide strategic directions to

strengthen their PFM systems
Assist the OAs to strengthen their
coordination in better supporting
PFM reforms identified, designed
and being implemented by the
LGUs

 Help Development
Partners in identifying
possible entry points for
financial support and
other interventions.

Revenue Generation
Budgeting
Accounting
Auditing
Cash Management
Debt Management; and
Public Sector Reporting on
Financial Operations

 The overall picture of the current

state of LGU PFM is reflected by
the total mean rating of 2.34
This indicates that the elements of
an open and orderly PFM system2
are not complete, but what exist
are already fully operational.

 Out of the 7 critical dimensions, the

lowest mean ratings are the
following:
- Internal and External Audit;
- Policy-based Budgeting; and
- Accounting, Recording and
Reporting

 Service delivery system that lowers

the cost of doing business,
stimulates private investments,
generates employment and income
opportunities, thereby improving
the welfare of LGU constituents
and reducing the incidence of
poverty

 An open and transparent LGU

PFM System that is stable and
sustainable, renders financial
compliance, ensures the highest
level of accountability and provides
genuine citizens participation, thus
enabling efficient and effective
delivery of services

 Aggregate fiscal discipline at the

LGU level:
- Effective control of the budget
- Reliable revenue forecasts
- Cost-effective revenue collection
- Sustainable level of borrowings

 Resource allocation, including

revenue and borrowing
instruments, is linked to local and
national government policy goals
Operational efficiency and
effectiveness in service delivery

 Linking Budget Planning to Policy

Priorities:
- Link Between CDP LDIP
AIP1 And Budget
- Viability of LEEs and PUs

 Developing Reliable and

Predictable Budget
- Access to Budget Information
- Revenue and Expenditure
Forecast
- Cash Flow Forecasting
- Compliance with RA 9184 & IRR
- Availment of CSE from DBM PS

 Integrating Transparency and

Accountability into Financial and
Performance Management
- CSO Accreditation Process
- CSO Participation in the Budget
Process

 Holding Managers to Account

- Accounts Reconciliation
- Liquidation of Cash Advances
- Financial Reports
- Internal Audit Unit/Service
- Internal Audit Reports
- Management Action on Internal
Audit

 Holding Managers to Account

- External Audit Recommendation
- Addressing Adverse COA
Findings
- UACS for LGUs
- Budget Performance Monitoring

 It complements the LGU PFM

Reform Roadmap, which is a
stand-alone document.
It provides specific actions to carry
out the policy tools/interventions
that will, in turn, result to the
outcomes.

 Guides the LGUs in preparing their

respective PFMIP
LGUs can choose and tailor-fit
interventions that will suit the
conditions and circumstances
existing in their LGUs

 Articulates the systems approach

used in addressing the factors
affecting the PFMAT scores
The interventions identified
address the needs of LGUs along
seven (7) capacity pillars

Policy Agenda
(Issues)
Link Between
CDP-LDIP-AIPBudget

Policy Tools
(Interventions)

Implementation
Strategy

Strengthen Linkage Policy

Between CDP-LDIP- Issue Policy
AIP-Budget
Reiterating
Compliance
with the

Outcomes
LGUs fullycapacitated to
prepare and
update their

CDP
Updated/
with matching
Enhanced
LDIP from w/c
CDP-LDIP
AIP are derived
Structure
Reconstitute LDC
Based on the
Updated CDP-LDIP
Manual

Policy Agenda
(Issues)

Policy Tools
(Interventions)

Implementation
Strategy

Outcomes

Management System
Embed/integrate
the e-budget in the
regular financial
management information system
Competency/People
Cascade/Roll-out
w/n the LGU the
CapDev received
from RIAT

Policy Agenda
(Issues)
Viability of
LEEs/Pus

Policy Tools
(Interventions)
Promote selfReliance of
LEEs/Pus

Implementation
Strategy

Outcomes

Policy
Issue policy
LGUs fully capon the creation
acitated in setof LEEs/PUs
ting-up and
Competency/People managing
Cascade/Roll-out LEEs and PUs
w/n the LGU the
CapDev received
from RIAT

Policy Agenda
(Issues)

Policy Tools
(Interventions)

Implementation
Strategy

Outcomes

Access to Budget Regular Updating Policy

Updated Budget
Information
of Budget Info.
Issue policy
Information
to be Publicly
Reiterating
Regularly
Posted
Compliance
Posted
w/ FDP
Structure
Compliance with
Designate a
the FDP
Unit to Facilitate
and Coordinate
Compliance
With FDP

Policy Agenda
Policy Tools
(Issues)
(Interventions)
Local Revenue Improve Revenue
Generation

Implementation
Strategy
Outcomes
Policy
LGU capacitated

Generating Capacity Update Local on Local Revenue

Revenue Code Generation
& Schedule of
Market Values
Management System
Adopt & Utilize
Revenue Generation
Tools

Policy Agenda
(Issues)
Cash Flow

Policy Tools
(Interventions)
Improve Cash

Implementation
Strategy
Outcomes
Policy
LGU capacitate

Forecasting

Flow Forecasting
Management

Issue Directive
on Cash Flow
Mandating the Use Forecasting
of Cash Flow
Forecasting
Increase accuStructure
racy on Cash
inter-departmental Flow Forecast
coordination and
information sharing
amongst local finance
offices

Policy Agenda
Policy Tools
Implementation
(Issues)
(Interventions)
Strategy
Outcomes
Compliance with Enhance Procure- Policy
LGU capacitated
RA 9184 & its
IRR

ment Capabilities

Issue policy
on Procurement
directing the
Process
assessment
of compliance
with Procurement
Law & guidelines