Adoption of the Performance-Informed Budget Structure for the National Expenditure Program (NEP)/General Appropriations Act (GAA)

March 12, 2013 BLGF MEMORANDUM CIRCULAR NO. 039-13 TO : All Central and Regional Directors of this Bureau and Others Concerned SUBJECT : Adoption of the Performance-Informed Budget Structure for the National Expenditure Program (NEP)/General Appropriations Act (GAA) For the information and guidance of all concerned, attached is a copy of National Budget Memorandum No. 117 from the Department of Budget and Management dated March 1, 2013 regarding the above-captioned subject. The Central and Regional Directors of this Bureau are hereby instructed to take note of the above and disseminate the contents to all Bureau Staff. Please be guided accordingly. (SGD.) ATTY. SALVADOR M. DEL CASTILLO OIC-Executive Director ATTACHMENT March 1, 2013 DBM NATIONAL BUDGET MEMORANDUM NO. 117-13 FOR : All Heads of Departments, Agencies, Bureaus, Offices, Commissions, State Universities and Colleges, Other Instrumentalities of the National Government and All Others Concerned SUBJECT : Adoption of the Performance-Informed Budget Structure for the National Expenditure Program (NEP)/General Appropriations Act (GAA) 1.0 Rationale Consistent with the on-going Public Expenditure Management (PEM) Reforms, which aim to put more performance orientation in the budget process, Performance-Informed Budgeting shall be adopted starting FY 2014 to strengthen linkages between planning, budgeting and outcomes, simplify budget presentation and enhance transparency and accountability in the allocation of limited resources. The Performance-Informed Budgeting, during its transition period in FY 2014, shall entail the following: a. Continued use of the Organizational Performance Indicator Framework (OPIF) as a strategic tool with the following key elements: A defined strategic framework relating agency mandates to overall government priorities, as well as intended outputs and outcomes; An efficient system of indicators to measure agency performance; and A transparent matching of costs and Major Final Outputs (MFO)/programs/projects. b. Adoption of a performance-oriented budget structure for the NEP/GAA starting 2014. SAHITC c. Integration of performance information in the NEP/GAA. 2.0 Purposes 2.1 To inform the various stakeholders on the adoption of the performance-informed budget structure for the NEP/GAA; 2.2 To prescribe supplemental budget preparation guidelines and template on the restructured 2014 budget documents; and 2.3 To set the schedule for the conduct of the forum to orient the departments/agencies on the performance-informed budget structure and how this will relate to the prescribed budget preparation forms per NBM 115. 3.0 Guidelines 3.1 A simplified and comprehensive structure shall be adopted in preparing the Performance-Informed Budget for FY 2014, focusing on the budget prioritization framework approved by the President and the five (5) Key Result Areas (KRAs) to guide departments/agencies in formulating their plans, programs and projects. 3.2 The Performance-Informed Budget structure (template shown as Annex "A" ) considers the implementation, starting FY 2014, of the policy to treat the GAA as the release document and the one-year validity of appropriations. The template has the following parts, sections and features: 3.2.1 Strategic Objectives Mandate, Vision, Mission, KRAs, Sector Outcome and Organizational Outcome 3.2.2 Section 1 Expenditure Program Three-year expenditure level (2012-2014) by allotment class [Personnel Services, Maintenance and Other Operating Expenses, Financial Expenses (if applicable), and Capital Outlay] for the following: o GASS DHSACT o STO o Total Operations o Total Projects o Total Agency Budget Staffing Summary (2012-2014) o Total number of authorized and filled positions 2014 expenditure level for the following: o Operations by Major Final Outputs (MFOs) and by allotment class. o List of Projects (locally funded and foreign-assisted) 3.2.3 Section 2 Expenditure Program by Central/Regional Allocation Expenditure program for the budget year of the agency by central/regional allocation 3.2.4 Section 3 Special Provisions These include provisions for use of income and special accounts in the general fund for specific agencies. 3.2.5 Section 4 Performance Information for 2014 Key Strategies Performance Information o MFOs o Performance Indicators (PIs) SAHIDc 3.3 Other budget information that shall also be presented by DBM in the initial pages of the new template of the NEP/GAA are the following: 3.3.1 Overview of the National Budget; and 3.3.2 General Provisions. 3.4 The following budget details shall be presented in a separate Volume, i.e. , Details of FY 2014 Budget, to be treated as an integral part of the NEP/GAA: 3.4.1 Comparison of Appropriations and Obligations, 2012-2014 3.4.2 Breakdown of Expenditures by Programs and Activities, 2014 3.4.3 Expenditure Program by Operating Unit, 2014 4.0 Submission Requirements and Timetable 4.1 All departments/agencies/operating units, in addition to the information requirements per NBM 115 (2014 Budget Call), shall submit to DBM the accomplished template on the new budget structure, not later than April 15, 2013. This shall be included as one of the talking points during the Technical Budget Hearing (TBH). 4.2 The required template cited under Item 4.1 of this Circular must be duly endorsed by the Department Secretary/OEO Head and submitted in five (5) copies to the Budget Technical Service (BTS) , Ground Floor, DBM Building II, General Solano St., San Miguel, Manila. In the case of SUCs, the accomplished template must be duly endorsed by CHED and submitted directly to their counterpart DBM Regional Offices. 5.0 The Circular on the conduct of the forum for agencies on the new budget structure shall be issued separately by DBM. EaScHT 6.0 For strict compliance. (SGD.) FLORENCIO B. ABAD Secretary ANNEX A (NAME OF DEPARTMENT) A. (NAME OF AGENCY) Strategic Objectives MANDATE (source document Agency Charter) VISION (source document Citizen's Charter) MISSION (source document Agency Charter) KEY RESULTS AREAS (source document EO 43) SECTOR OUTCOME (Updated PDP statement, if available or updated OPIF Logframe) ORGANIZATIONAL OUTCOME Section 1 Expenditure Program (In Pesos) No./ GASS/STO/ 2012 2013 2014 Code Operations/ Actual Current Proposed Projects ___ General Administration and Support _________ _________ _________ ___ PS _________ _________ _________ ___ MOOE _________ _________ _________ ___ CO _________ _________ _________ ___ Support to Operations _________ _________ _________ ___ PS _________ _________ _________ ___ MOOE _________ _________ _________ ___ CO _________ _________ _________ ___ Operations /1 _________ _________ _________ ___ PS _________ _________ _________ ___ MOOE _________ _________ _________ ___ CO __________ _________ _________ ___ Projects /2 _________ _________ _________ ___ PS _________ _________ _________ ___ MOOE _________ _________ _________ ___ CO _________ _________ _________ Total Agency Budget _________ _________ _________ ___ PS _________ _________ _________ ___ MOOE _________ _________ _________ ___ CO _________ _________ _________ Staffing Summary 2012 2013 2014 Total Staffing _________ _________ _________ ___ Total Number of Authorized Positions _________ _________ _________ ___ Total Number of Filled Positions _________ _________ _________ Proposed 2014 Proposed 2014 Operations by MFO (Please Specify) /1 PS MOOE CO Total ___ MFO 1 _________ _________ _________ _________ ___ MFO 2 _________ _________ _________ _________ ___ MFO 3 _________ _________ _________ _________ ___ MFO 4 _________ _________ _________ _________ Proposed 2014 Projects (Specify the Name of Projects) /2 PS MOOE CO Total ___ Locally-Funded _________ _________ _________ _________ ___ Foreign-Assisted _________ _________ _________ _________ Section 2 Expenditure Program by Central/Regional Allocation (In Pesos) Region PS MOOE CO Total Central Office Regional Allocation (net of CO): NCR _________ _________ _________ _________ Region I _________ _________ _________ _________ Region II _________ _________ _________ _________ Cordillera Administrative _________ _________ _________ _________ Region Region III _________ _________ _________ _________ Region IV-A _________ _________ _________ _________ Region IV-B _________ _________ _________ _________ Region V _________ _________ _________ _________ Region VI _________ _________ _________ _________ Region VII _________ _________ _________ _________ Region VIII _________ _________ _________ _________ Region IX _________ _________ _________ _________ Region X _________ _________ _________ _________ Region XI _________ _________ _________ _________ Region XII _________ _________ _________ _________ Region XIII _________ _________ _________ _________ Autonomous Region in _________ _________ _________ _________ Muslim Mindanao Total Agency Budget _________ _________ _________ _________ Section 3 Special Provisions SP No. 1 ____________________________________________ SP No. 2 ____________________________________________ SP No. 3 ____________________________________________ (other SPs) ____________________________________________ Section 4 Performance Information KEY STRATEGIES FOR 2014: MFO/PIs 1 2014 Proposed MFO 1: Performance Indicator No. 1 ___________________________ Performance Indicator No. 2 ___________________________ Performance Indicator No. 3 ___________________________ (others) ___________________________ MFO 2 Performance Indicator No. 1 ___________________________ Performance Indicator No. 2 ___________________________ Performance Indicator No. 3 ___________________________ (others) ___________________________ MFO 3 Performance Indicator No. 1 ___________________________ Performance Indicator No. 2 ___________________________ Performance Indicator No. 3 ___________________________ (others) ___________________________ MFO 4 Performance Indicator No. 1 ___________________________ Performance Indicator No. 2 ___________________________ Performance Indicator No. 3 ___________________________ (others) ___________________________ Footnotes 1. The 2012 and 2013 Performance Indicators (PIs) shall be presented separately since these are not aligned with the 2014 PIs.