Você está na página 1de 12

DEPARTMENT OF BUDGET & MANAGEMENT

PUBLIC FINANCIAL
MANAGEMENT
ASSESSMENT TOOL
FOR LOCAL GOVERNMENT
UNITS
(PFMAT FOR LGUs)

OUTLINE OF PRESENTATION

Understanding the Conceptual


Framework for PFM Assessment
Legal Bases
PFM & Its Goals
Rationale for PFM Assessments
Analytical Framework for PFM
Assessments
The PFM Assessment Tool for LGUs
Basic Concepts
Value of the PFMAT for LGUs
Features of the PFMAT for LGUs
Procedures for Conducting a PFM
Assessment
Using the Results of the PFMAT for LGUs

Public Financial Management


Assessment

Conceptual
Framework

UNDERSTANDING THE CONCEPTUAL


FRAMEWORK FOR PFM ASSESSMENT

Legal Bases for LGU PFM:


1987 Philippine Constitution & Local Government
Code of 1991
The territorial and political subdivisions of the
State shall enjoy genuine and meaningful local
autonomy to enable them to attain their fullest
development as self-reliant communities and
make them more effective partners in the
attainment of national goals. Toward this end,
the State shall provide for a more responsive
and accountable local government structure
instituted through a system of decentralization
whereby local government units shall be given
more powers, authority, responsibilities, and
resources.

UNDERSTANDING THE CONCEPTUAL


FRAMEWORK FOR PFM ASSESSMENT

Legal Bases for LGU PFM:


Operative Principle of Decentralization:
(b) There shall be established in every
local government unit an accountable,
efficient, and dynamic organizational
structure and operating mechanism that
will meet the priority needs and service
requirements of its communities;

PFM is an integral part of such


organizational structure and
operating mechanism

UNDERSTANDING THE CONCEPTUAL


FRAMEWORK FOR PFM ASSESSMENT

What is Public Financial Management?


Public Financial Management (PFM) is a
system
of
rules,
procedures
and
practices for government to manage
public finances encompassing:
o budgeting;
o accounting;
o auditing;
o cash management;
o management of public debt;
o revenue generation; and
o public reporting on public sector

financial operations.

UNDERSTANDING THE CONCEPTUAL


FRAMEWORK FOR PFM ASSESSMENT

Goals of Public Financial Management

PFM

UNDERSTANDING THE CONCEPTUAL


FRAMEWORK FOR PFM ASSESSMENT

5 Priority
Areas

Societal
Goal
Sectoral
Goal
PFM
Goal

Inclusive Growth and Poverty Reduction

Good Governance

Fiscal Discipline

Improve efficiency, accountability and


transparency of public fund use for better service
delivery
Source: PFM Roadmap presentation

UNDERSTANDING THE CONCEPTUAL


FRAMEWORK FOR PFM ASSESSMENT

Rationale for PFM Assessments


PFM largely and directly affects the delivery
of public goods and services to the LGUs
constituents

Adequate funds for


basic services
PPAs aligned with
LGU and NG
development
goals
Better service at lower costs

UNDERSTANDING THE CONCEPTUAL


FRAMEWORK FOR PFM ASSESSMENT

Rationale for PFM Assessments


Part of government efforts to
institutionalize governance reforms

Basis for PFM


Improvement Planning

Pre-requisite to the
release of funds to LGUs
under the Bottom-Up
Budgeting

UNDERSTANDING THE CONCEPTUAL


FRAMEWORK FOR PFM ASSESSMENT
Analytical Framework
Underpinning the PFMAT
An Open & Orderly PFM System
Supports:
Aggregate Fiscal Discipline
Strategic Allocation of
Resources
Efficient Service Delivery
Critical Dimensions of an Open &
Orderly PFM System

Credibility of the Budget


Predictability & Control in Budget
Execution
Policy-Based Budgeting
Comprehensiveness and Transparency
Accounting, Recording & Reporting
Internal & External Audit
Citizens Participation

Critical Dimensions are Defined by


the Key Elements of the PFM
System Described by the
Performance Indicators

Assessment Provided by the


PFMAT
Extent to which existing PFM
systems support the achievement
of:
Aggregate Fiscal Discipline
Strategic Allocation of
Resources
Efficient Service Delivery

Extent to which PFM systems,


processes and institutions meet the
critical dimensions of PFM
performance

Operational performance of the key


elements of the PFM systems
against the critical dimension of
PFM performance

Thank You
DEPARTMENT OF BUDGET & MANAGEMENT