03-DBM2017 Executive Summary
03-DBM2017 Executive Summary
03-DBM2017 Executive Summary
A. Introduction
The Department of Budget and Management (DBM), created under Executive Order
(EO) No. 25 dated 25 April 1936, is mandated under this Order and by subsequent
issuances to promote the sound, efficient and effective management and utilization of
government resources (i.e., technological, manpower, physical and financial) as
instrument in the achievement of national socioeconomic and political development
goals.
It shall lead public expenditure management to ensure the equitable, prudent, transparent
and accountable allocation and use of public funds to improve the quality of life of each
and every Filipino.
Among others, the following are the general functions of the Department:
Formulates the overall resource application strategy to match the government’s macro-
economic policy;
Undertakes the formulation of the annual national budget in a way that ensures the
appropriate prioritization and allocation of funds to support the annual program of
government;
Conducts a continuing study of the bureaucracy and assesses as well as makes policy
recommendation on its role, size, composition, structure and functions to establish a
government bureaucracy imbued with a spirit of public service;
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The DBM is headed by a Secretary and assisted by six Undersecretaries and four
Assistant Secretaries. It has 680 personnel complement in the Central Office (CO) and
392 in the Regional Offices (ROs) as follows:
B. Financial Highlights
The financial position, financial performance and the sources and utilization of funds for
Funds Cluster 01-Regular Agency Fund, 04-Special Account-Foreign Assisted/Grants
and 07-Trust Fund for Calendar Year (CY) 2017 with corresponding figures for CY 2016,
are summarized as follows:
For CY 2017, the Agency has a total appropriation of P1.397 billion under Republic Act
(RA) No. 10924. The agency received total allotments of P3.338 billion, of which total
obligations incurred amounted to P3.033 billion, thereby leaving a balance of P304.410
million, details as follows:
Obligations Unobligated
Sources of Funds Allotments
Incurred Balance
Regular Appropriation P2,922,153,552.00 P2,657,851,059.20 P264,302,492.80
Continuing Appropriation 415,376,449.59 375,268,973.65 40,107,475.94
Total P3,337,530,001.59 P3,033,120,032.85 P304,409,968.74
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C. Operational Highlights
Under the General Appropriations Act (GAA) for Fiscal Year (FY) 2017 (RA No. 10924),
the DBM’s total appropriations for the programs and specific activities amounted to
P1.397 billion, details are as follows:
Program/Project Amount
A. PROGRAMS
I. General Administration P 773,993,000.00
Support
II. Support to Operations 142,708,000.00
III. Operations
a. MFO 1: Budget Policy
Advisory Services 25,402,000.00
b. MFO 2: Budget
Management Services 221,228,000.00
c. MFO 3: Organizational
Productivity Enhancement
Services 27,957,000.00
d. MFO 4: Performance
Review and Evaluation
Services 88,880,000.00 363,467,000.00
Sub-total P1,280,168,000.00
B. PROJECTS
I. Locally-funded Projects 116,884,000.00
Total New Appropriations P1,397,052,000.00
The DBM accomplished more than the physical targets under Major Final Outputs
(MFOs) 2 and 4, with related costs incurred totaling P241.377 million and P85.801
million or 94.35 and 92.33 per cent, respectively, of the budget allotted for its activities.
D. Scope of Audit
The audit covered the financial audit of the accounts and operations for CY 2017 of the
DBM-CO and its ROs, except, the result of the audit of RO VII, which is not included in
this report. The audit was conducted to: (a) verify the level of assurance that may be
placed on Management’s assertions on the financial statements; (b) recommend agency’s
improvement opportunities; (c) determine the propriety of transactions as well as the
extent of compliance with pertinent laws, rules, and regulations; and (d) determine the
extent of implementation of prior year’s audit recommendations.
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E. Independent Auditor’s Report on the Financial Statements
2. Unserviceable PPE items and semi-expendable items totaling P77.305 million were
not disposed since CY 2015, thus had exposed the said properties to further
deterioration, unnecessarily occupied space, and lost opportunity to earn income from
sale thereof.
3. Management did not strictly comply with the five-day submission requirement for
contracts and Purchase Orders (POs) under COA Circular No. 2009-001, thus
precluded the timely auditorial review and communication of audit results.
4. The submission to the Audit Team of financial reports and supporting documents, and
Bank Reconciliation Statement (BRS) for CY 2017 was delayed by 6 to 350 days,
thereby, prevented the prompt audit/review of the subject transactions.
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We recommended and Management agreed to:
a) Direct the Accountant and the concerned accountable officer to submit the
Monthly Trial Balance, BRS, and other financial reports within the
prescribed deadlines; and
The balances of Notice of Suspensions (NS), Disallowances (ND) and Charges (NC) as
of year-end are summarized below:
Out of the 49 prior year’s audit recommendations embodied in the CY 2016 Consolidated
Annual Audit Report, 24 were fully implemented, 18 were partially implemented, four
not implemented and three no status of implementation. The details are discussed in Part
III of this report.