Manual on the Preparation and Submission of the Cash Planning Report (CPR)

August 31, 2018 TREASURY CIRCULAR NO. 05-2018 TO : All Heads of Departments/Agencies/Other Agencies of the National Government (NG), Including Constitutional Commissions, Congress, the Judiciary, Office of the Ombudsman, State Universities and Colleges (SUCs) and All Others Concerned SUBJECT : Manual on the Preparation and Submission of the Cash Planning Report (CPR) 1. BASIS 1.1. This Circular is issued pursuant to DBM Circular Letter 2017-14 requiring the preparation and submission of Cash Planning Reports (CPR) which shall provide more detailed estimates of cash requirements for each quarter, including updates considering actual disbursements as well as latest policy directions. AaCTcI 2. OBJECTIVES 2.1. To be used as guide by spending agencies in accomplishing their CPRs. 2.2. To prescribe detailed guidelines in the preparation and submission of CPR by NGAs/Other Agencies of the NG to the Bureau of the Treasury (BTr). 2.3. To provide recommendations on the plotting of cash requirements for Personnel Service (PS), Maintenance and Other Operating Expenses (MOOE), Capital Outlay (CO) and Financial Expenses (FinEx). 2.4. To be used by the BTr personnel and staff as they train the spending agencies on cash planning and other cash management initiatives under the Budget Reform Bill (BRB). 3. TRANSITORY PROVISIONS 3.1. All Heads of Departments/Agencies/Other Agencies of the National Government (NG), including Constitutional Commissions, Congress, The Judiciary, Office of the Ombudsman and the State Universities and Colleges (SUCs) and All Others Concerned shall prepare and submit CPRs to BTr following the attached Manual on the Preparation and Submission of Cash Planning Report . 4. EFFECTIVITY 4.1. This Circular shall take effect immediately, and all other circulars, orders or memorandum inconsistent herewith are hereby deemed revoked and/or modified accordingly. acEHCD (SGD.) ROSALIA V. DE LEON Treasurer of the Philippines ATTACHMENT BUREAU OF THE TREASURY Manual on the Preparation and Submission of the Cash Planning Report (CPR) Document Reference Code: BTr-MPSCPR Revision No. 0 Effective Date: August 13, 2018 INTRODUCTION RATIONALE On 19 October 2017, the Department of Budget and Management (DBM) issued Circular Letter (CL) No. 2017-12, prescribing the guidelines and formats to be observed starting FY 2018, for the Budget Execution Documents (BEDs) following the implementation of the Program Expenditure Classification (PREXC)-based Performance-Informed Budgeting (PIB). EcTCAD As part of government efforts to continuously explore measures to facilitate the timely and appropriate planning and execution of programs and projects, the shift from a multi-year obligation-based budget to a one-year cash-based budget shall be pursued starting FY 2019. The adoption of the one-year cash-based budget calls for the implementation of reforms in cash management to ensure the availability of accurate and timely estimates of agency cash disbursements required to support the Monthly Disbursement Programs (MDP) per Budget Execution Document (BED) No. 3. The Bureau of the Treasury's (BTr) cash forecasting initiative started in 2014 and was supported by the issuance of DOF Order No. 032-2015 in February 2015, pursuant to Executive Order No. 55 Series of 2011. The Department Order prescribed the procedural guidelines on the preparation and submission of the Cash Forecast Reports (CFR) by national government agencies (NGAs) to the BTr. The cash forecasting model system was designed to estimate the Treasury Single Account (TSA) balance for each day of the following three months. Having an accurate forecast of cash balances helps the BTr to better time and size its borrowings and to plan investments of idle cash balances while ensuring that operating requirements of NGAs are met. The cash forecast also aimed to serve the debt management office for debt planning and the central bank for liquidity management. In support of the BTr's cash management effort, the DBM Circular Letter No. 2017-14 was issued on 4 December 2017 requiring the preparation and submission of Cash Planning Report (CPR) having the same objective as the CFR but using a restructured format to provide more detailed estimates of cash requirements for each quarter, including updates considering actual disbursements as well as latest policy directions. SDHTEC PURPOSE The objective of the CPR is to provide the BTr with timely, credible and realistic estimates of cash requirements of all NGAs for better cash management. It will also strengthen departments and agencies in their management of cash resources through preparation of a more accurate cash program consistent with the actual requirements for the execution/implementation of their programs and projects. COVERAGE All Departments, Bureaus, Offices and Other Agencies of the National Government, including Constitutional Commissions, Congress, the Judiciary, Office of the Ombudsman and the State Universities and Colleges shall prepare and submit a CPR. IMPLEMENTING GUIDELINES The Agencies shall be guided by the following in their preparation of the CPR: 1. The CPR shall reflect the detailed daily cash estimate of the agency/department per quarter. 2. The CPR shall be consistent with the MDP mandated under BED Form No. 3 submitted to and as evaluated by DBM. This form (attached as ANNEX A ) shall be submitted to Receipts, Investment and Disbursement Division (RIDD) of the BTr ([emailprotected]), copy furnished DBM's Budget Technical Bureau (BTB), every 10th day of the month of the preceding quarter ( e.g. , 10 December 2017 for the January-March 2018 CPR, 10 March 2018 for the second quarter CPR) or if it falls on a weekend or holiday, it will be submitted on the next business day. 3. The CPR shall be used for cash forecasting purposes by BTr to estimate the daily cash requirement of all the NGAs. The agency-submitted MDP as approved by DBM shall remain as basis for Notice of Cash Allocation (NCA) releases and for assessing agency performance. HSAcaE 4. The CPR shall be jointly prepared by the Budget Officer and the Accountant in coordination with the Head of Planning/Planning Office and the Program/Project Implementing Office/Unit or Project Management Office/Unit of the departments, bureaus, offices, agencies and operating units (OUs). 5. The CPR shall reflect the cash requirements of an agency/department plotted daily for the month with the following details: a. Recurring expenditures . This shall include the regular cash requirements for the following: - Personnel Services (PS); - Maintenance and Other Operating Expenses (MOOE) water, electricity, telephone bills, rental payments, supplies and materials, janitorial & security services; and - Financial Expenses (FinEx) interest, bank fees and charges. b. Non Recurring expenses . - Capital Outlay (CO) these are expenditures under programs/projects that are based on contracts and other ongoing/new CO/infrastructure projects for which cash disbursements or payments are made on the basis of progress billings or agreed terms of payments defined in a contract. This may also include Accounts Payable (A/P). - MOOE all other MOOE disbursements such as travelling, training, supplies expenses. - FinEx other one-time financial charge. 6. Separate/additional CPR shall be submitted per additional or revised MDP prepared/submitted by the agency/department. 7. Updates/revisions on the quarterly CPR shall be allowed to take into consideration actual disbursements during the quarter and to reflect any or new significant changes or adjustments in the CPR amount. For instance, for Q1 an agency can submit a revised CPR in February 10 or earlier based on its January disbursement performance. However, the revision should be within the MDP or NCA issued by DBM. 8. For end of the fiscal year, that is strictly by end of 2019, cash requirements for all goods delivered, inspected and accepted and booked as A/P using the Inspection and Acceptance Report (IAR) shall be included in the CPR for Q1 of the following year taking into account the extended payment period (EPP) meaning, January-March of the following year. AScHCD 9. For agencies that have centralized budget and transfer allotment and cash (through Notice of Transfer of Allocation (NTA)) to its regional/provincial offices, the plotting of the cash requirements will depend on when the receiving regional/provincial offices will use the cash. The regional/provincial offices shall instead prepare the CPR for submission to the Central Office for consolidation. DETAILED GUIDELINES IN THE PREPARATION OF CPR Allotment Class Personnel Services (PS) 1. For salaries/wages, the cash requirements will be plotted on the schedule of pay day. If the schedule of pay day falls on a Saturday or Sunday, the plotting of requirements will be on a Friday. The NGAs are encouraged to have a uniform pay day date for easy evaluation and review of the CPR. For uniformity, NGAs need not have a bank account to handle payroll service. Advice to Debit Account (ADA) can be submitted by the Agency on the day before the pay date and the Bank shall credit the individual accounts (ATM account) of the employees in time for the pay date. Banking arrangements of the above shall be done by the NGAs with their servicing banks. 2. For mandatory deductions, plotting of the cash requirements will be as follows: a. For GSIS, PhilHealth and PAG-IBIG remittances, these shall be for end of the month plotting. The amount remitted to the above agencies should tally with the listings of personnel's corresponding premium, deductions, etc. b. For other deductions, plotting of cash requirements will depend on the scheduled due date/s. 3. For other personnel benefits, i.e. , clothing allowance, mid-year bonus, other authorized allowances, etc. plotting of cash requirements depends on when will this be given following a certain guidelines or procedures. 4. The cash requirements for PS will be net of tax. 5. Personnel salaries/benefits not paid by end of the fiscal year shall be booked as A/Ps and plotting of cash requirements shall be during the EPP (January-March) of the following fiscal year. Maintenance and Other Operating Expenses (MOOE) Recurring expenses i.e. , water, electricity, telephone bills, subscriptions, etc. 1. The cash plotting shall be based on the due dates. This shall take into consideration the processing time from when the bill is received by the Agency. 2. Unpaid bills with contracts that fall due in 2019 shall be booked as A/Ps. Thus, payment for the 2019 December bills shall use the appropriation of the 2019 fiscal year. However, plotting for the cash requirements shall be on the EPP meaning, January-March of the following year. Non Recurring MOOE 1. The cash requirements shall be plotted based on when the cash shall be used for payment to suppliers or contractors. For ADA, it shall be plotted on the date the ADA is submitted to the government servicing bank (GSB). If the NGA is still using check/s to pay for its obligations, date of submission to the GSB of the Advice of Checks Issued and Cancelled (ACIC) or the Summary of List of Due and Demandable Accounts Payable (LDDAP)-ADAs Issued and Invalidated ADA Entries (SLIIE) shall be used to plot the cash requirements. For NGAs using check for payment, they are reminded to inform their suppliers of the three (3)-month validity of checks. 2. Proper planning and programming shall be done for purchases or activities during the year, i.e. , travels for review of operations in the field; attendance to planning conference; conduct of seminars/workshops; attendance to seminars/workshops, procurement of supplies and materials (please take note of the cut-off of Procurement Service), etc. 3. A schedule day of accepting bills for payment can be also enforced, i.e. , every Thursday of the week or any day the Agency may decide depending on its transactions. This shall include a commitment on the turn-around-time (TAT) to process payment/s with complete documentation to provide certainty on when cash shall be needed. 4. Preparation and submission of ADA to GSB for payment to the suppliers shall also be set. 5. All services/goods rendered/delivered, inspected and accepted but not paid by end of the year shall be booked as A/Ps. This shall follow guideline number 2 on MOOE Recurring expenses. Capital Outlay (CO) 1. The plotting of cash requirements shall depend on the terms and conditions of payment in the contract or the progress of the project. Date of payment based on the contract or project implementation and/or completion/progress billing shall include processing time and completion of documentary requirements. NGAs are encouraged to set a day (for example, every second and last Friday of the month) for payment of suppliers based on the TAT and completion of documentary requirements. Example: Due date for progress billing is monthly, to be submitted, say every 18th of the month, then the plotting will depend on the TAT the NGA committed for payment. 2. The budget officer shall closely coordinate with the PMO to get updates on the progress of the projects to update the CPR. A report shall be required from the PMO for updates on the status of the projects for purposes of updating the cash requirements. 3. All unpaid works (i) completed, inspected and accepted (for completed projects) and (ii) completed and inspected (all works under multi-year obligational authority (MYOA) that are subject to progress billing) by end of the year shall be booked as A/Ps. Thus, payment shall follow guidelines similar to item number 2 under Recurring MOOE. Financial Expenditures (FinEx) 1. Plotting in the CPR depends on the scheduled due date taking into consideration the timing of conversion if payment will be in USD or third currency, timing of remittance from the government servicing bank to funder's bank, etc. USE OF BTr ONLINE WORKSHEET (Interim solution pending the development of the submission portal) 1. Sign-in to your Gmail account. HESIcT a. Go to www.gmail.com b. Enter your email address c. Enter your password 2. Open the link provided by BTr thru email. This link will open the sheet that will be used for the Cash Forecasting of your agency. AcICHD 3. Fill out necessary fields (SAMPLE ONLINE WORKSHEET) OFFLINE 1. Download the CPR template Excel sheet provided by BTr. 2. Fill out ALL the necessary fields. 3. Once DONE, go to www.gmail.com and sign-in your account. 4. If you do not have a Google account, you may submit it via email to [emailprotected] using your email provider and disregard the succeeding instructions . 5. Open the link provided by BTr. This link will open the sheet that will be used for the Cash Forecasting of your agency. 6. Import the accomplished template to Google sheets. a. Go to File Import b. Go to Upload tab and click Select a file from computer . c. Find and open the filled out CPR template. d. When the upload is finished, just select " Replace spreadsheet " and click " Import data ." e. Uploaded file should be reflected on your Google sheets. ANNEX A Sample CPR Problem on Cash Planning Report: Prepare your Q2 (April-June) Cash Plan Report (CPR) based on the information below . caITAC Plot in the attached CPR template the most likely disbursements, assuming a 90-99% BUR . NOTE: Take note of holidays and non-business days in plotting the disbursements in the CPR . FY 2018 Cash Planning Report (CPR)