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    Pfmat Intro

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    Bern
    The document outlines the conceptual framework for assessing public financial management (PFM) in local government units (LGUs) in the Philippines. It discusses the legal basis for LGU PFM in the 1987 Constitution and 1991 Local Government Code. PFM encompasses budgeting, accounting, auditing, cash management, debt management, revenue generation, and public reporting. Assessments of PFM systems are conducted to support goals of fiscal discipline, strategic resource allocation, and efficient service delivery. The PFM Assessment Tool for LGUs (PFMAT for LGUs) evaluates critical dimensions of PFM systems, processes and institutions to support improvement planning and budget release conditions.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Pfmat Intro

    Uploaded by

    Bern
    367 views12 pages
    The document outlines the conceptual framework for assessing public financial management (PFM) in local government units (LGUs) in the Philippines. It discusses the legal basis for LGU PFM in the 1987 Constitution and 1991 Local Government Code. PFM encompasses budgeting, accounting, auditing, cash management, debt management, revenue generation, and public reporting. Assessments of PFM systems are conducted to support goals of fiscal discipline, strategic resource allocation, and efficient service delivery. The PFM Assessment Tool for LGUs (PFMAT for LGUs) evaluates critical dimensions of PFM systems, processes and institutions to support improvement planning and budget release conditions.

    Original Description:

    INTRODUCTION TO PFMAT DBM

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    The document outlines the conceptual framework for assessing public financial management (PFM) in local government units (LGUs) in the Philippines. It discusses the legal basis for LGU PFM in the 1987 Constitution and 1991 Local Government Code. PFM encompasses budgeting, accounting, auditing, cash management, debt management, revenue generation, and public reporting. Assessments of PFM systems are conducted to support goals of fiscal discipline, strategic resource allocation, and efficient service delivery. The PFM Assessment Tool for LGUs (PFMAT for LGUs) evaluates critical dimensions of PFM systems, processes and institutions to support improvement planning and budget release conditions.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    367 views12 pages

    Pfmat Intro

    Uploaded by

    Bern
    The document outlines the conceptual framework for assessing public financial management (PFM) in local government units (LGUs) in the Philippines. It discusses the legal basis for LGU PFM in the 1987 Constitution and 1991 Local Government Code. PFM encompasses budgeting, accounting, auditing, cash management, debt management, revenue generation, and public reporting. Assessments of PFM systems are conducted to support goals of fiscal discipline, strategic resource allocation, and efficient service delivery. The PFM Assessment Tool for LGUs (PFMAT for LGUs) evaluates critical dimensions of PFM systems, processes and institutions to support improvement planning and budget release conditions.

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    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

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