Local Government Finance and Fiscal Decentralization Reform Program, SP2 (RRP PHI 44253-015)

PUBLIC FINANCIAL MANAGEMENT ASSESSMENT

I. Summary

1. The Philippines has achieved much over the past 6 years. Sound macro-economic
performance has been complemented by marked improvements in a number of qualitative and
quantitative measures of governance. In 2015, the economy grew by 5.8% of GDP and
registered an accelerating growth rate through the first quarter of 2016. The Philippines has also
advanced to 47th position in the World Economic Forum’s Global Competitiveness Index
Rankings and has made strong progress towards achieving the Millennium Development Goals
(MDG).1 Nevertheless, and despite high economic growth rates, progress in reducing poverty
has been slow. Income poverty still exceeds the MDG target (2015) of 17.2 percent.

2. The government has recognized that improved public financial management (PFM) will
be critical in ensuring that the Philippines can achieve its development goals. A transparent and
credible PFM system supports informed decision-making, and the effective and efficient
provision of public goods and services. Under the umbrella Philippine Development Plan
2011–016, the government has instituted an aggressive reform agenda to promote effective and
honest governance to create an enabling environment for citizens and the private sector. The
Good Governance and Anti-Corruption Cabinet Cluster oversees a comprehensive and
integrated governance and anticorruption action plan which, among others, calls for improved
public financial management systems, capacity for results-based budgeting, and an improved
policy and regulatory environment for private sector development.

3. The 2014 update of the 2010 PEFA assessment validates the government’s efforts as
the average scores for three of the six poorly rated dimensions (comprehensiveness and
transparency, policy-based budgeting; and accounting, recording and reporting) have
improved.2 The government has harmonized Philippine Accounting Standards and Philippine
Public Sector Standards of Accounting with International Financial Reporting Standards and the
International Public Sector Accounting Standards, respectively. A Unified Account Code
Structure (UACS) was rolled out and a performance-informed budget process was introduced.
As a result, the government has improved its performance relative to international fiscal
transparency standards.3 Moreover, indicators of corruption have also improved. The
Philippines rose to 95th place out of 175 countries in Transparency International’s 2015
Corruption Perception Index, from 134th place out of 178 countries in 2010.

4. Remaining areas of weakness (e.g. budget credibility, predictability and control in budget
execution, and external scrutiny and audit) are being addressed. Budget credibility has been
enhanced through the adoption of an Outcome-Based Performance-Informed Budget (FY 2015)
and efforts to ensure fast and efficient budget execution. In addition, the government has
strengthened the budget review process and has reduced the number and magnitude of special
purpose funds by incorporating these lump sums into the agency budgets. To utilize the
harmonized financial reporting now available through UACS, the government launched an
analytical tool which is capable of loading, organizing, and consolidating UACS based data

1
The Global Competitiveness Report 2015–2016 provides an overview of the competitiveness performance of
140 economies.
2
The 2010 PEFA assessment identified six dimensions as the main PFM weaknesses. These included: credibility of
the budget, comprehensiveness and transparency, policy-based budgeting, predictability and control in budget
execution, recording and reporting, and external scrutiny and audit.
3
The 2015 Open Budget Index assigned the Philippines a (transparency) score of 64 for transparency, representing
a significant improvement over 2012 when the Philippines received a score of 48.
2

during all phases of the budget cycle. A web-based portal will be used to provide interactive
tools for business analytics, reporting, ad hoc queries and dashboards. Transparency has been
strengthened through the adoption of the Transparency Seal, which requires all government
agencies to disclose key information through their respective websites. As part of this effort, the
Open Budget Data project directs government agencies to proactively release datasets, and to
generate an ecosystem to support the use and reuse of the datasets by the public. The recent
adoption of a Treasury Single Account will increase budget credibility by centralizing the
collection of government revenues. This reform has also provided the framework for the ongoing
installation of a new treasury management system which will organize financial information in a
central database to support budget management, commitments management, payments
management, receipts management, cash management, accounting, and fiscal reporting.
Finally, to improve scrutiny and audit, Congress now reviews and approves the annual budget
and the standards governing public audit have been strengthened.

5. More needs to be done. The institutional framework for public financial management is
fragmented. Several agencies are involved in the implementation and oversight of PFM systems
and in some cases, they have overlapping mandates. This fragmentation demands close
coordination among these agencies, requires a strong system of checks and balances, and
dilutes accountability. For example, the Philippines fares relatively well in principles where a
single agency responsible for fiscal reporting and accounting, but concerns on data
comparability and integrity arise when where multiple agencies are involved. Political risks
remain high. While recent efforts to increase budget credibility are notable, the Constitution
provides the President with a high degree of discretion to re-allocate portions of the budget
across the executive branch during execution. Further, public expenditure management is still
characterized by a generally low efficiency of spending. Reasons vary, buy surveys indicate
underspending in 2014 was due primarily to structural weaknesses in project preparation and
implementation. Common issues include poor planning and program or project design, frequent
bidding failures and weak capacity of procurement staff; difficulties in securing clearances or
right-of-way, and weak LGU implementation capability, among others.

II. Background

A. Macro-fiscal Context

6. Rapid economic growth. The Philippines posted an economic growth rate of 5.8% of
GDP in 2015, and recorded an accelerating growth rate of 6.9% of GDP in the first quarter of
2016 as compared to 6.5% the previous quarter. Growth was attributed to increased
infrastructure spending over the last five years and a number of reforms aimed at strengthening
PFM which accelerated budget execution.4 The Philippines has advanced to 47th position (out of
140 economies) in the World Economic Forum’s Global Competitiveness Index Rankings,
increasing 5 places over last year and up 17 places since 2007.5 Recently, however,
the International Monetary Fund (IMF) has lowered its economic growth forecast for 2016 and
2017 to 6% and 6.2% respectively. The IMF noted that economic activity has been dragged
down by higher global financial volatility and weather-related disruptions.

7. Progress on the Millennium Development Goals. As of 2014, which is the most

recent report available, 14 out of 35 MDG indicators have a high probability of being attained
(e.g. pace of progress is greater than 90 percent). On the other hand, 14 indicators have a low

4
Statement of Secretary of DBM on the 2015 fourth quarter and full year performance of the economy.
5
IMF, World Economic Outlook - The Global Competitiveness Report 2015–2016.
 3

chance of being attained (e.g. pace of progress is less than 50 percent), and 7 indicators have a
medium or fair chance (e.g. pace of progress is between 50 and 90 percent). Significant
achievements were reported in reducing infant mortality, empowering women, increasing the
proportion of households with access to safe water and sanitary toilet facilities, reversing the
incidence of malaria, and increasing tuberculosis detection and cure rates. Disappointing
misses were noted in improving maternal health, combatting HIV/AIDS, and addressing the
underperformance of boys relative to girls in all levels of education.

8. Despite high economic growth rates, progress in reducing poverty has been slow.
Income poverty, based on the official poverty thresholds, has declined from 34.4 percent in
1991 to 25.8% in 2014, but still exceeds the MDG target (2015) of 17.2 percent. While recent
economic growth has translated to faster reduction in poverty, natural calamities and economic
shocks have largely offset these effects.

9. Fiscal sustainability. Past concerns over fiscal sustainability partially explain the
government’s traditionally tight fiscal position and the low level of public expenditure on
economic, social services and poverty reduction programs. The government’s fiscal
consolidation program has, however, reduced debt service as percentage of GDP from 5.3% in
2005 to 2.8% in 2013. Focused efforts to increase revenue collections produced higher receipts
during the period 2010–2013. Nevertheless, efforts need to be sustained and further intensified
as increases in revenue and reductions in debt service will provide fiscal space to accommodate
increased spending for basic goods and services

10. Fiscal outlook for 2015-2017.6 The 2015 National Budget retains this conservative bias
as reflected by the projected fiscal deficit which was targeted at 2 percent of GDP (0.9% actual).
This policy was supported by the government's efforts to improve revenue collection without
enacting new taxes, as well as strategic liability management to reduce the country’s debt
burden as a proportion of GDP.

11. Based on the latest macroeconomic forecasts, and recent changes in the Fiscal Year
2015 budget, the revised revenue program for the year was reduced to P2,275 billion. This
budget is P62.1 billion lower that the original Budget of Expenditures and Sources of Financing
(BESF) target of P2,337.3 billion due to the expected negative impact of two revenue-eroding
measures recently passed by Congress.7 As a result, total revenue is projected to reach 16.3
percent of GDP for the year, lower than the BESF program of 16.5 percent, but still significantly
higher than the 2014 outturn at 15.2 percent. To maintain the deficit target at 2 percent of GDP,
an equivalent reduction in disbursements was identified. This reduction reflected changes in the
budget made by Congress and other agencies and also anticipated likely additional revenue
shortfalls in view of the weak outturn of disbursements during the previous months.

B. Importance of Public Financial Management8

12. The Government of the Philippines is implementing major reforms to strengthen its PFM
systems. These reforms are laid out in the Philippine Public Financial Management Roadmap:

6
DBCC Mid-Year Report 2015
7
The Bureau of Internal Revenue reduced its revenue forecast by P16.9 billion due to the expansion of tax
exemptions for di-minimis benefits, while an additional P30.0 billion in revenue is likely to be foregone due to the
increase in the tax exemption ceiling for bonuses. The collection target of the Bureau of Customs (BOC) was also
reduced by some P20 billion given the lower import outturn and huge decline in oil process ($90–110 per barrel to
$50-70 per barrel) as a result of developments in the Middle East and the United States.
8
www.pfmp.org.ph
4

Towards Improved Accountability and Transparency 2011–2015. This roadmap includes a

comprehensive reform agenda that seeks to clarify, simplify, improve and harmonize the
government’s financial management processes and information systems. PFM is an essential
part of the government’s plans to improve transparency, accountability, public institutions and
particularly governance in pursuit of more inclusive growth and poverty alleviation. A sound
PFM system helps reduce the opportunity for misuse of funds, aids decision-makers in the
government as they perform their functions and decide where to allocate funds to achieve the
greatest good, and provides transparency regarding where and how the public funds are
actually being spent.

C. Historical Perspective and Past Efforts to Strengthen PFM

13. In January 2010, a Memorandum of Agreement (MOA) was entered into by and between
the key oversight agencies, namely: the Commission on Audit (COA); the Department of Budget
and Management (DBM), and the Department of Finance – Bureau of Treasury (DOF-BTR).
This MOA was used to establish an inter-agency committee (also termed as GIFMIS
Committee) to clarify, simplify, improve and harmonize the financial management processes
and information system of the public sector. In addition, and as necessary, the GIFMIC
Committee would amend and integrate the relevant financial information management systems
in the COA, DBM, DOF-BTR, and other implementing agencies to eventually foster the
development of a Government Integrated Financial Management Information System (GIFMIS).
The GIFMIS Committee would be responsible for securing the steadfast engagement of all key
stakeholders, converging existing financial management processes and information system
programs and initiatives, and focusing on sustainable solutions and ensuring government
ownership of the GIFMIS implementation plan.

14. In September 2011, the President formalized the government’s mandate (Executive
Order Number 55) to complete the integration and automation of government financial
management systems. The GIFMIS Committee, which would now be called the PFM
Committee, was tasked with undertaking the development of GIFMIS and also with
implementing the PFM Reform Roadmap and launching a Treasury Single Account.

15. The Philippines–Australia Public Financial Management Program (PFMP), a joint

initiative of the Governments of Australia and the Philippines, was created to support the
government’s efforts to implement its Philippine PFM Reform Roadmap: Towards Improved
Accountability and Transparency, 2011–2015. This comprehensive PFM reform agenda aimed
to clarify, simplify, improve and harmonize the financial management processes and information
systems. Under this and other programs, a number of key reforms were completed and are
detailed below.

16. New Government Accounting system. In 2002, COA rolled out a new government
accounting system (NGAS) that aimed to simplify government accounting, in conformity with
international standards, and to generate periodic and relevant financial statements. With the
implementation of the NGAS, a modified accrual basis of accounting was introduced. All
government agencies are required to prepare a balance sheet, income and expenditure
statement and a cash flow statement. Central offices of government departments consolidate
the department-wide financial statements.

17. Accounting and Auditing Standards. Twenty five Philippine Public Sector Standards of
Accounting have been harmonized with the International Public Sector Accounting Standard
(IPSAS). In 2013, twenty-four Philippine Public Sector Standards on Auditing were adopted
 5

through COA Resolution No. 2013-007. International Financial Reporting Standards (IFRS)
were adopted in 2014 through COA Resolution 2014-003.

18. The Philippine Government Internal Audit Manual (PGIAM) was issued to serve as a
generic guide for internal auditors in government to understand the nature and scope of the
internal audit function in the public sector, including the institutional arrangements, protocols
and processes for the conduct of internal audit. DBM enhanced the capabilities of internal audit
staff by providing training on PGIAM and issuing the National Guidelines on Internal Control
Systems.

19. Revision of Chart of Accounts. In 2013, the chart of accounts of the National
Government was revised to provide new accounts for the adoption of PPSSA through COA
Circular No. 2013-002.9 The revised Chart of accounts is now incorporated in the new
government accounting manual.

20. Treasury Single Account (TSA). Treasury Circular Number 03-2013 was issued to
implement the Memorandum of Agreement for authorized banks and authorized government
depository banks to collect and remit national internal revenue taxes, customs duties, and other
national collections into the TSA. The DOF-BTR operates the TSA which is maintained at the
Bangko Sentral ng Pilipinas. The TSA is consistent with and supports the government’s policy of
requiring greater financial management and control over its cash resources and allows for the
unification of government bank accounts.

21. Capacity building. The participation of civil society organizations (CSO) in the national
budget process has been developed and formalized under Budget Partnership Agreements
(BPAs) covering a large number of departments, agencies and Government Owned and
Controlled Corporations (GOCCs). In addition, COA has piloted citizen participatory audit
activities through CSOs in four spending departments. In 2013, a total of 77 BPAs were signed
with CSOs covering six national government agencies and two GOCCs. Aside from department
central offices, the regional offices of the Department of Labor and Employment and
Department of Social Welfare and Development signed BPAs with CSOs from their respective
regions. In crafting the 2014 Budget, two national government agencies and two GOCCs signed
BPAs with CSOs.

22. Unified Account Code Structure (UACS). A harmonized UACS, formulated by DBM and
COA, was rolled out to support the 2014 budget preparation process, and is being adopted to
support accounting and reporting during 2015.

23. Performance-Informed Budgeting (PIB). This approach strengthens linkages between

planning, budgeting and outcomes. PIB also simplifies budget presentation and enhances
transparency and accountability in the allocation of limited resources.10

24. Budget Priorities Framework (BPF). To fully support the performance-informed

budgeting system, the Government of the Philippines adopted the Budget Priorities Framework
(BPF) through National Budget Memorandum Number 118. The BPF set the budget priorities for
FY2014 in line with the five priority areas of President Aquino’s Social Contract with the Filipino
People.

9
COA Circular 2013-002.
10
National Budget Memorandum No. 117 dated 1 March 2013.
6

25. GIFMIS. The PFM agencies implemented the prerequisites for GIFMIS, including the
TSA, UACS, Revised Chart of Accounts, Performance-Informed Budgeting framework, and
improved business processes.

26. Management of contingent liabilities. A list of contingent liabilities has been prepared to
facilitate central monitoring and management of guaranteed loans. The GOCC debt report
templates have been completed and the development of GOCC Monitoring System (GMS) is
underway. A database buildup for the GMS is ongoing for selected priority GOCCs and the
social security institutions.

III. Overview of the Current System

A. Roles and Responsibilities11

27. The Principals include the Chairman of the Commission on Audit, the Secretary of the
Department of Budget and Management, and the Secretary of the Department of Finance.
These individuals are committed to promote fiscal responsibility and good governance through
greater transparency and accountability in the management of government funds. Plans call for
the development of a modern computerized integrated financial management system, and the
review and re-engineering of existing operational budgeting, cash management, and accounting
auditing rules and procedures. These changes are designed to provide timely, more effective
and responsive ways of managing, monitoring and reporting the financial performance of the
government to its citizens.

28. The PFM Committee (formerly the GIFMIS Committee) is composed of authorized
alternates or representatives of the Principals who hold senior management level positions.
They have the authority to make immediate decisions during critical meetings, or on other
pressing concerns, and serve as focal persons for cooperation. The Committee oversees,
coordinates, and develops the integration and harmonization of the government’s financial
management information systems. These systems cover all financial transactions of
government in a phased and systematic manner, and apply uniformly to all government
oversight and implementing agencies in order to generate reliable and accurate reports in a
timely manner. By virtue of Executive Order No. 55, the Committee is tasked not only to
undertake development of GIFMIS but also implement the PFM Reform Roadmap as well as to
operationalize a TSA. All outputs of the Committee are recommendatory in nature, and all
milestone activities are reported to the principals.

29. The Project Implementation Units are responsible for the implementation of the key
projects within the PFM reform agenda.12 International development partners are assisting the
government in its PFM reform efforts. The Government of Australia is working with the
Philippine Government through the Philippines-Australia Public Financial Management Program
(PFMP) to implement the Philippines PFM Reform Roadmap. Other development partners
include the Asian Development Bank (ADB), International Monetary Fund (IMF), the World
Bank, and the European Union.

11
The responsibilities of the Principals and the PFM Committee are indicated in the Memorandum of Agreement
between COA, DBM and DBM; and in Executive Order No. 55.
12
COA is responsible for developing GIFMIS, and accounting and auditing reforms. The BTr is responsible for
improving cash management operations and liability management. DBM is responsible for budget repointing and
performance standards as well as capacity development.
 7

B. Basic Laws and Regulations

30. Executive Order No. 55 was signed by President Benigno S. Aquino on 6 September
2011 directing the integration and automation of government financial management systems.
The financial management systems of the three key oversight services (COA, DBM and DOF)
shall be automated to the extent necessary and feasible and fully integrated to serve as the
backbone of the financial reporting system of the government. Key regulations issued to guide
the reforms can be found in annex 1.

IV. Assessment of PFM

A. Summary/Update of 2014 PEFA findings

31. The 2010 PEFA assessment identified six dimensions as the main PFM weaknesses.
These included; credibility of the budget, comprehensiveness and transparency, policy-based
budgeting, predictability and control in budget execution, recording and reporting, and external
scrutiny and audit. On the basis of the 2014 update of the 2010 PEFA assessment, the average
scores for three of the six dimensions (comprehensiveness and transparency, policy-based
budgeting; and accounting, recording and reporting) have improved.13 No or limited progress
was observed in the areas of budget credibility, predictability and control in budget execution,
and external scrutiny and audit (in particular legislative scrutiny of external audit reports).

32. Budget credibility has since been enhanced through the adoption of an outcome-based
performance-informed budget (FY 2015) and through the implementation of GAA-as-Release
Document Policy which ensures fast and efficient budget execution. In addition, the
implementation of the UACS has harmonized financial reporting among DBM, DOF and COA.
The Program Expenditure Classification system has ensured that agencies’ budget items
(programs, project, and activities) are aligned with the organizational objectives they contribute
to. Finally, the People’s Budget provides citizens with accessible summaries of the annual
budget.

33. Comprehensiveness and transparency has been strengthened through the adoption of
the Transparency Seal. This seal mandates all government agencies to disclose key information
through their respective websites, such as their functions, budgets and financial reports, status
of major programs and projects, procurement activities, and contact information. The Open
Budget Data initiative requires government spending agents to proactively release datasets, and
generate an ecosystem for the use and reuse of the datasets by the public.14

34. Policy-based budgeting was improved through the use of an outcome-based

performance-informed budget which tightened the alignment of spending with desired socio-
economic outcomes and measurable outputs.

35. Predictability and control of budget execution was enhanced by the adoption of a TSA to
centralize the collection of revenues arising from internal revenue taxes, customs duties, and
other national collections. Accounting, recording and reporting issues were addressed through
the implementation of the UACS which harmonized financial reporting among DBM, DOF and

13
Based on an ADB assessment.
14
Technical Notes on the Proposed 2015 National Budget provided substantial narrative discussions and key details
of the proposed fiscal program and expenditure priorities. Moreover, the notes presented new and/or additional
information regarding the 2015 Budget of Expenditures and Sources of Financing (BESF).
8

COA. The adoption of the Revised Chart of Accounts supported the adoption of PPSAS. A
Government Accounting Manual was completed and issued. An online web-based annual
financial reporting system and financial accountability reporting system facilitates the efficient
submission of annual financial statements, and budget and financial accountability reports.
Finally, the Budget Cycle Analytics Business Intelligence Solution equipped budget analysts
with an analytical tool to facilitate enhanced performance analysis and decision making.

36. External scrutiny and audit was strengthened by the requirement for Congress to review
and approve the annual budget. The Revised Framework of Professional Standards
emphasized the independence of supreme audit institutions, the practices of transparency and
accountability, and provided for reforms in financial, compliance and performance audit
guidelines.

B. Assessment of Public Procurement

37. This Revised Implementing Rules and Regulations (IRR) are promulgated pursuant to
Section 75 of Republic Act No. (R.A.) 9184, otherwise known as the “Government Procurement
Reform Act”. The IRR prescribe the necessary rules and regulations for the modernization,
standardization, and regulation of the procurement activities of the government.15 The IRR
created the Government Procurement Policy Board (GPPB), a policy and monitoring body with
the mandate to handle all procurement matters affecting the national interest. Standard bidding
documents have been provided and generic procurement manuals make it easier for everyone
to understand and to participate in the procurement process. In 2012, the GPPB adopted the
Agency Procurement Compliance and Performance Indicators (APCPI) system to standardize
procurement monitoring, assessment and evaluation. The system identified the strengths and
weaknesses of procurement agencies, and formulated a reasonable action plan. Based on the
results of the focus group discussions conducted by the GPPB-Technical Support Group, the
major causes of delays in procurement were identified as: poor planning; a low number of
bidders; professionalization of the BAC and its secretariat and technical support staff; varying
interpretations of the rules; leadership issues; the approval and review process; and,
incompetence of procurement personnel.16

38. The 2012 Country Procurement Assessment Report (CPAR) Action Plan included
64 measures to be implemented between 2012 and 2016. The government has implemented
some of the action plans as agreed in the 2008 and 2012 Country Procurement Assessment
Reports. These measures include, among others, the upgrade of the Philippine Government
Electronic Procurement System (PhilGEPS) into a full e-procurement system, the establishment
of the Government Open Data portal (data.gov.ph) to provide easy access to information about
contracted projects, and the localization of procurement reform through manuals for local
government units and civil society organizations. The promotion of e-procurement through the
Philippine Government Electronic Procurement System (PGEPS) has also vastly improved
transparency and efficiency. Procurement costs have gone down as a result of savings in
advertising expenses. In 2015, the GPPB issued a circular to remind procuring entities to submit
the procurement monitoring report (PMR) for every semester.

15
The Revised IRR were approved by the Government Procurement Policy Board (GPPB) through its Resolution
03- 2009, dated 22 July 2009, and published in the Official Gazette on 3 August 2009. They became effective
thirty (30) days after its publication or on 2 September 2009.
16
DBM 2014 Annual Report.
 9

C. Assessment of Accounting and Audit

39. In the Philippines, both audit and accounting functions are vested upon a supreme audit
institution, the COA. The Constitution mandates that the COA “keep the general accounts of
the government” which represents an exceptional set-up as COA is required to both audit and
perform a limited accounting function. With this mandate, COA has continued to set accounting
standards and rules.

40. COA prescribed the use of the Government Accounting Manual through COA Circular
Number 2015-007. The manual was issued in accordance with pertinent accounting and
budgeting rules and regulations. The Chart of Accounts for National Government Agencies has
been revised to provide new accounts for the adoption of PPSAS through COA Circular Number
2013-002. The Revised Chart of Accounts (RCA) was incorporated in the Government
Accounting Manual. The revised chart of accounts for Local Government Units and for GOCCs
was prescribed in 2015.17 Finally, COA issued Circular Number 2015-001 on January 29, 2015
directing government agencies to revert cash balances of all dormant accounts, and
unnecessary special and trust funds to the General Fund.

41. Unified Account Code Structure.18 A harmonized budget classification and UACS has
been formulated by DBM and COA.19 The system was rolled out for the 2014 budget
preparation process, and was further enhanced in November 2014.20 UACS was adopted for
accounting and reporting in 2015 and will improve financial reporting. Oversight and
implementing agencies will share a common set of financial data and information for budgeting,
procurement, cash management and treasury, and accounting and auditing. This provides
timely access to information which will, in turn, support improved analysis and decision making.

42. GIFMIS reforms. GIFMIS is a major reform output of the PFM Reform Roadmap, which
seeks to strengthen fiscal discipline, transparency and accountability for improved public service
delivery. It aims to harmonize and improve PFM business processes and rules toward making
reliable financial information and analysis available to executives, managers and staff in the line
and oversight agencies. The PFM Committee approved the GIFMIS design in April 2013 which
providing the basis for the government to procure a commercial off-the-shelf solution. The PFM
agencies implemented the prerequisites for GIFMIS – TSA, UACS, Revised Chart of Accounts,
Performance-Informed Budgeting framework, and improved business processes towards a ‘go
live’ pilot of GIFMIS in October 2015. However, the government decided in January 2015 to
abandon the procurement process and proceed with a more incremental solution focused
initially only on oversight agencies. The modified solution (the Budget and Treasury
Management System), will go live in early 2017.

17
Government Corporations consist of Government-Owned or Controlled Corporations, Government Financial
Institutions, Government Instrumentalities with Corporate Powers/Government Corporate Entities, their
subsidiaries, and water districts.
18
The Unified Accounts Code Structure or UACS is a government-wide harmonized budgetary, treasury and
accounting code classification framework jointly developed by the Department of Budget and Management, the
Commission on Audit, the Department of Finance and the Bureau of the Treasury to facilitate reporting of all
financial transactions of agencies including revenue reporting.
19
As a coding framework for financial transactions, the UACS ensures that all processes, from budgeting and cash
management to accounting and audit will follow a single classification system or common language. The new
codes will make it easier to collect, aggregate, consolidate and report financial transactions across government.
20
COA-DBM-DOF Joint Circular No. 2014-1 dated 7 November 2014.
10

D. Assessment of Reporting and Transparency

43. The COA is mandated by the Philippines Constitution to submit to the President and the
Congress, within the time fixed by law, an annual report covering the financial condition and
operation of the government. The scope of this report also includes the government’s
subdivisions, agencies and instrumentalities, including government-owned or controlled
corporations and nongovernmental entities subject to its audit. The report provides
recommendations to improve the efficiency and effectiveness of these entities. The Annual
Financial Report (AFR) is prepared based on numerous reports submitted by the agencies to
COA and DBM.

44. The 2014 AFR for the national government featured the first financial statements which
are based on the PPSAS which were adopted pursuant to COA Resolution No. 2014-003
(January 1, 2014). The PPSAS are aligned with the prevailing International Public Sector
Accounting standards and provide quality accounting reports set uniformity to allow
comparability with other public sector entities around the world.

45. Online Financial Reporting. In 2015, COA has developed online web-based
application systems, the Annual Financial Reporting System (AFRS) and the Budget and
Financial Accountability Reporting System (BFARS). These systems facilitate the efficient
submission of the AFRs and Budget and Financial Accountability Reports (BFARs) of national
government agencies.21 The development of these two application systems is part of COA’s
efforts to use automation to provide timely and relevant financial and budgetary information to
its clientele: the Office of the President, the Congress, oversight agencies, and the public. The
use of these systems promotes transparency in the utilization and management of government
funds. The main purpose of the systems is to ensure prompt submission of the reports to
facilitate faster and more efficient consolidation of financial statements and reports, and the
preparation of constitutionally-required reports. Through the use of AFRS and BFARS, data are
gathered directly from the source and manual interventions are minimized, eliminating user error
in the consolidation process. Thus, reporting will be more efficient, reliable and timely.22

46. Transparency. The government has instituted reforms that allows for more
transparency in government operations and over the use of public funds. The following
initiatives were introduced to promote greater fiscal transparency and provide citizens with
greater access to information on public financial management

47. Transparency Seal. First introduced in 2011, the transparency seal requires all
government agencies to disclose key information through their respective websites, such as
their functions, budgets and financial reports, status of major programs and projects,
procurement activities, and contact information. By 2014, around 98 percent (186 out of 190) of
all Departments, NGAs, SUCs, and GOCCs had complied with the requirements of the
Transparency Seal.23

48. Improved Budget Reporting. The DBM, together with the Development Budget
Coordination Committee (DBCC), has been pursuing initiatives to improve fiscal transparency in
the Philippines in line with global benchmarks.24 DBM has produced technical notes on the

21
COA Circular 2015-005 dated 16 July 2015.
22
The effectiveness of these systems can be determined only after the 2015 AFR has been prepared.
23
DBM 2014 Annual Report.
24
DBM 2014 Annual Report.
 11

proposed 2015 national budget which provide substantial narrative discussions and key details
of the proposed fiscal program and expenditure priorities. Moreover, DBM presented new or
additional information in the 2015 BESF. In particular, DBM provided: medium-term fiscal
parameters which show important details of the financing program including projections for
infrastructure spending over a three-year horizon; multi-year projections of tax and non-tax
revenues up to 2017, consistent with international standards; and, disclosure of the tax
incentives granted to private investors registered with different investment promotion agencies.
Through these initiatives, The Philippines improved its performance relative to international
fiscal transparency standards. The Open Budget Survey (OBS) of the International Budget
Partnership reported in 2015 that the Philippines published all eight essential budget
documents.25 This is a significant improvement from the Philippines’ performance in the 2012 at
which time the country only published four of the eight essential budget documents. As a result,
the 2015 Open Budget Index assigned the Philippines a score of 64 for transparency,
representing a significant improvement over 2012 when the Philippines received a score of 48.

49. The People’s Budget. DBM published the 2014 People’s Budget in Filipino and Bisaya
to reach more audiences. Aside from releasing the People’s Budget publications in print and
online, DBM also produced audio-visual presentations and quick-glance editions, developed
collaterals on key budget reforms and issues, and intensified its social media engagement
activities. DBM has further improved the contents and design of the flagship People’s Budget
2015 and the 2015 People’s Proposed Budget (formerly the Proposed Budget in Brief) after
surveying stakeholders to solicit their feedback and inputs on the publications.

50. Open Budget Data. The Open Data Philippines initiative, launched on 16 January 2014,
sought to proactively release public sector datasets and generate an ecosystem for the use and
reuse of the datasets by the public. Through the website, the government supplies datasets in
open and machine-readable formats. Aside from the launch of an associated website
(data.gov.ph), the Open Data Philippines Task Force was able to pursue a number of other
initiatives.26 For example, an open government data provision was adopted in the 2015. The
General Appropriations Act (GAA) requires agencies to adopt a policy of openness regarding
their datasets which means that their datasets must be in open and machine readable formats,
and released with open licenses. Open data provisions were also adopted in the proposed
Freedom of Information bill. These provisions are akin to the one adopted in the 2015 GAA with
additional details, such as the frequency of updating and the “release to one, release to all”
provision. Finally, specialized portals were launched, including: openreconstruction.gov.ph - a
budget tracking system for the government’s Build Back Better program; openbub.gov.ph - a
transparency, monitoring, and evaluation portal for the Bottom-up Budgeting program, and the
Extractive Industries Transparency Initiative (EITI) Contracts Dashboard (data.gov.ph/eiti) – a
project led by the DOF and the Multi-Stakeholder Group of the Philippines EITI, which
catalogues around 40 mining and oil and gas contracts.

E. Anti-corruption efforts

51. In December 2014, the Integrity Management Program (IMP) was established as the
national corruption prevention program of the government. This program covers six dimensions
or management systems that are linked together to enhance both individual and systems
integrity. They are: Service Delivery; Institutional Leadership; Human Resource Management

25
Open Budget Survey 2015, Chapter 1 – Empowerment through the Budget
26
Open Data Philippines Task Force comprised of the Office of the Presidential Spokesperson (OPS), DBM, and the
Presidential Communications Development and Strategic Planning Office (PCDSPO)
12

and Development; Financial, Procurement and Asset Management; Internal Reporting and
Investigation, and; Corruption Risk Management. The IMP’s objectives include reducing
vulnerabilities to corruption at the department and agency level, ensuring integrity is practiced in
the public sector, and improving the public’s trust and confidence in government.27 An Integrity
Management Committee (IMC) was created in each department and agency to oversee and
ensure the effective implementation of the IMP, as well as all integrity management initiatives
and measures. Operational Guidelines were issued in April 2015 to provide a do-it-yourself
manual to guide agencies in implementing the IMP.

52. The national anti-corruption resolution, signed by key government officials, was
presented to the President during the 3rd State Conference of the United Nations Convention
against Corruption (UNCAC) implementation review in December 2015. The resolution was
handed over by the Ombudsman who also relayed a progress report on the creation of the five-
year anti-corruption framework. The resolution calls on all the relevant government agencies,
concerned private sector groups, and civil society organizations to continue their active
participation and engagement on various consultation efforts relative to progress on the UNCAC
compliance and anti-corruption initiatives of the government.

53. The updated Good Governance and Anti-Corruption Cluster Plan (2013–2016) include
improved anti-corruption measures as one of four priority outcomes. Sub-outcomes are greater
accountability of public servants and intensified efforts to prevent smuggling and tax evasion. A
website has been developed to serve as a repository of project reports, cluster updates, and
other publications and related documents.

54. As a result of the government’s anti-corruption efforts, the Philippines placed 85th out of
175 countries in Transparency International’s 2015 Corruption Perception Index. This
represents a marked improvement from last year when the Philippines was ranked in 94th
place. Further, the Political and Economic Risk Consultancy Ltd. noted the Philippines improved
to 10th place (2016) from 12th place (2015) among the 16 economies covered by its annual
review of corruption in Asia and the Pacific. The World Bank’s 2014 “Ease of Doing Business”
rankings place the Philippines at 95 out of 189 economies, 13 steps higher than the previous
year.

F. Remaining Constraints and Issues

55. Improved public financial management (PFM) is central to the Philippines’ achieving
its development goals. This requires, amongst other things, a transparent and credible PFM
system to manage public resources to support informed decision-making, and the effective and
efficient provision of public goods and services. PFM reforms need to be sustained and those in
progress need to be completed. To institutionalize these reforms, the proposed Public Financial
Accountability Act will need to be approved.

56. The Institutional Framework is fragmented. Several agencies are involved in the
implementation and oversight of PFM systems and in some cases, they have overlapping
mandates. This fragmentation demands close coordination among these agencies, and
requires a strong system of checks and balances. Technical coordination on macro-fiscal
27
Executive Order No. 176 issued by the Office of the President on 1 December 2014 institutionalizing the Integrity
Management Program (IMP) as the National Corruption Prevention Program in all Government Departments,
Bureaus, Offices, Agencies, Including Government-Owned and Controlled Corporations, Government Financial
Institutions, State Universities and Colleges, and Local Government Units through the establishment of Integrity
Management System (IMS).
 13

policies is ensured through the Development Budget Coordinating Committee (DBCC) which
includes the Department of Budget and Management (DBM), National Economic and
Development Authority, Department of Finance (DOF), Bangko Sentral ng Pilipinas (BSP) and
the Office of the President (OP). However, some constitutional and autonomous bodies like the
COA and the Civil Service Commission (CSC) function independently on matters relating to
policies under their jurisdiction. This requires multiple levels of accountability. In fact, the IMF
Fiscal Transparency Evaluation report, issued in June 2015, noted that fiscal reporting itself was
fragmented.28

57. For example, the Philippines fares relatively well in principles where a single agency is
mandated with responsibility for fiscal reporting and accounting, and where reporting policies
are clear. The Annual Financial Reports prepared by COA and the monthly cash operations
reports by the Bureau of Treasury (BTR) for in-year reporting represent two such outputs.
However, where multiple agencies are involved in fiscal reporting, and coordination is
incomplete, concerns on data comparability and integrity arise. Reconciling information on fiscal
forecasts, budgets, outcomes, and statistics is a particular challenge in Philippines, as four
different entities (DBM, BTR, COA, and NEDA) are involved in these roles.

58. The Political economy. Political engagement in the budget process occurs through a
review and approval process that involves both chambers of Congress, the Executive and the
President. Under the Constitution, the President can also exercise a high degree of discretion to
re-allocate portions of the budget across the executive branch during execution. As part of the
efforts to improve operational efficiency and to better enforce agency accountability, the
government has continued to disaggregate lump sum funds and flesh out program and project
details. For 2016, only three lump sum funds remain; the Contingent Fund, the Calamity or the
National Disaster Risk Reduction and Management Fund, and the Allocations to LGUs. In short,
it is not possible to foresee the specific utilization of these funds prior to agency requests.29

59. Fiscal consolidation program.30 With revenues growing faster than disbursements, the
2014 deficit was recorded at P73.1 billion. This is 55.4% lower than the P164.1 billion budget
gap for 2013. The outturn was equivalent to 0.6% of GDP, below the deficit target of 2.0% of
GDP for the year. For 2014, revenue collection reached P1,908.5 billion, a double-digit increase
of 11.2% from the previous year. Total spending closed at P1,981.6 billion as of end of 2014, up
by 5.4% from 2013.

60. Budget execution is a particular concern, together with underspending and slower
disbursement. Public expenditure management is characterized by a generally low efficiency
of spending. To improve the ability of departments to utilize their budgets and implement
programs in a timely manner, the President signed Administrative Order Number 46 (March
2015) directing all heads of departments and agencies to implement measures to facilitate
budget execution for fiscal year 2015. Government spending closed at P2,230.6 billion as of end
of December 2015, up by 12.6% when compared with the disbursements in previous year.31
This is the fastest annual growth in government spending in the last three years, outperforming
the 5.8% and 5.4% growth recorded in 2013 and 2014, respectively. However, underspending

28
IMF Fiscal Transparency Evaluation Report issued in June 2015
29
DBM Fiscal Risk Statement 2015
30
DBM 2014 Annual Report
31
National Government Disbursement Performance as of 31 December 2015. Growth was made possible by:
i) higher personnel services expenditures from the grant of performance-based bonuses and requirements for
creation and filling up of positions in key agencies; and ii) increased MOOE due to the expansion of social and
community development programs implemented throughout the year.
14

remains a challenge. This was largely evident during the first two quarters of 2015 where close
to 55% of underspending was recorded (P78.2 billion or 13.4% in Q1 and P101.5 billion or
15.2% in Q2). By the third and fourth quarters, underspending had declined to P96.7 billion or
14.8% in Q3 and P51.9 billion or 8.0% in Q4, respectively. For the full year 2015, total
underspending was only 12.8% of the program by the end of the year. This is slightly lower than
the 13.8% deviation in 2014, and even lower at 11.9% when debt service is excluded, compared
to 13.6% in the previous year.

61. To streamline budget releases for 2016, the Government adopted the GAA-as-Release-
Document which enabled the release of 78% of the 2015 GAA at the start of the year. Utilizing a
cashless and checkless disbursement scheme, around 80% of payments to government
suppliers are being coursed through bank to bank transactions. Procurement innovations were
also introduced allowing certain agencies to advance certain procurement activities even before
the GAA is enacted.

62. Based on consultations with various departments and agencies, DBM recognized that
about 46.0% of the underspending that occurred in 2014 could be attributed to structural
weaknesses in project preparation and implementation.32 More specifically, challenges in the
following areas were mentioned: i) poor planning and program or project design, including
delays in complying with preconditions for release (e.g., network plans); ii) procurement
difficulties, including frequent bidding failures, delays in finalizing specifications, and weak
capacity of procurement staff; iii) bottlenecks in program or project implementation, which
include difficulties in securing clearances or permits, coordination problems, right-of-way and
other legal issues along with delays in billing and approval of suppliers’ claims, and; iv) weak
LGU implementation capability, among others.

V. Government’s Strategy

A. Philippine Development Plan

63. The Philippine Development Plan (PDP) 2011–2016 is the government’s blueprint that
defines the strategies and programs that will translate the President’s Social Contract with the
Filipino People into efficient, effective, and responsive actions that were to be achievable within
the term of office of the President. The PDP is operationalized by Executive Order Number 43
which identified the five key results areas (KRAs) of the Aquino Administration. The Aquino
Cabinet is actually organized along these five KRAs. The PDP aims to promote effective and
honest governance to create an enabling environment for citizens and the private sector to
reach their full potential. The President formed the GGACC to coordinate the implementation of
the governance and anti-corruption related initiatives contained in the President’s Social
Contract with the Filipino People, and the Government’s 16-point agenda along with priority
areas of development. The GGACC consolidated a comprehensive and integrated governance
and anticorruption action plan and oversees implementation of planned and ongoing initiatives
by various sector agencies. It is tasked to strengthen public institutions and to promote
transparency, accountability, and participatory governance. The GGACC pursues improved
public financial management systems, capacity for results-based budgeting, and seeks to
provide an improved policy and regulatory environment for private sector development. The
GGACC promotes transparency in government transactions to combat graft and corruption and
to enable civil society groups to monitor and evaluate Government performance.

32
Financial Risk Report 2015
 15

64. PFM Reform Roadmap. The PFM roadmap is a comprehensive reform agenda,
overseen by a PFM Committee, which seeks to clarify, simplify, improve and harmonize the
financial management processes and information systems of the public sector. The desired
result is that the national government is able to maintain fiscal discipline, allocate funds
efficiently, and effectively delivery public services. Specific PFM reforms and initiatives are
presented in Part II-C and part IV of this document.

65. LGU PFM Reform. A PFM Reform roadmap for the local government units (LGU PFM
Reform Roadmap) has been developed under an EU-funded project, and provides the platform
for instituting PFM reforms at the LGU level. The road map is complemented by an
implementation strategy that details the activities and timeframe to strengthen LGU revenue
generation and expenditure management. In February 2015, the LGU PFM Reform Roadmap
and Implementation Strategy was adopted and a PFM Assessment Tool (PFMAT) was
launched.33 PFMAT is a diagnostic tool which establishes the indicators that will help identify the
strengths and weaknesses in LGU PFM systems and recommend appropriate improvement
measures.

B. Recent initiatives

66. Budget Cycle Analytics (BCA) Business Intelligence Solution. The DBM, with
technical assistance from the Philippines-Australia Public Financial Management Program
(PFMP), has developed a Budget Cycle Analytics (BCA) Business Intelligence Solution. This
solution will equip budget analysts with an analytical tool which supports enhanced performance
analysis and decision making. The BCA is capable of loading, organizing, and consolidating
UACS-based data during the preparation, legislation, execution, and accountability phases of
the budget cycle. It will provide a web-based portal with graphic and interactive tools to support
business analytics, reporting, ad hoc queries and dashboards. BCA will provide in-year and
multi-year financial and physical performance analysis based on multiple dimensions (e.g. fiscal
year, date, UACS segments and hierarchy, budget cycle transactions, etc.). The BCA went live
on 20 January 2016.

67. Budget and Treasury Management System (BTMS). The BTMS Project, launched in
December 2015, will develop, operate, and maintain a new system that will link the financial
processes of the DBM and the DOF-BTr. The BTMS will help collect and organize financial
information in a central database to support budget management, commitments management,
payments management, receipts management, cash management, accounting, and fiscal
reporting. The project which will be implemented over 27 months and will go live in 2017.

68. Two-tier Budgeting. Aside from budget execution measures, the government also
continues to develop ways to improve budget preparation. DBM is implementing a Two-Tier
Budgeting Approach (2TBA) which will introduce separate reviews for ongoing and approved
programs vis-à-vis new or expanded ones to give a better focus on each type of program. In
2016, budget preparation will also target a lower number and magnitude of special purpose
funds (SPFs) by incorporating these lump sums into the agency budgets (e.g. provisions for
new positions, pensions and gratuities).

69. Revised Framework of Professional Standards. COA first issued the Framework of
Professional Standards through COA Resolution 2013-006 on 29 January 2013. The framework
provided an overview of all the standards and guidelines for public sector auditing, assurance

33
DBM-DILG-DOF-NEDA Joint Memorandum Circular No. 2015-1 dated 24 February 2015.
16

engagements and other related services, and harmonized current standards in the Philippines
with international standards on auditing. COA subsequently updated its professional standards
framework to emphasize the independence of supreme audit institutions, the importance of
transparency and accountability, and to revise financial, compliance and performance audit
guidelines. COA adopted the Revised Framework of Professional Standards through Resolution
Number 2016-007 on 3 May 2016. The framework was based on a study of applicable laws, the
International Standards of Supreme Audit Institutions (ISSAI) and the International Organization
of Supreme Audit Institutions (INTOSAI) Framework of Professional Standards. The revised
framework includes ISSA 10, ISSA 11 and ISSA 12, ISSAI 21.34 COA also adopted revisions
made by INTOSAI regarding the fundamental concepts and principles of the three types of
audit; financial, compliance and performance.

34
ISSAI 10, or The Mexico Declaration on SAI Independence, establishes eight core principles for SAI independence
approved by INTOSAI members at the XIXth Congress in 2007. ISSAI11 provides guidelines and good practices
related to SAI Independence. ISSAI 12 defines the value and benefits of Supreme Audit. SSAI 21 provides
principles of transparency and accountability
 17

ANNEX 1

(i) COA Circular No. 2013-02 dated 30 January 2013 – Prescribing the Adoption of the
Revised Chart of Accounts for National Government Agencies.

(ii) COA Circular No. 2014-003 dated 15 April 2014 – Conversion from the Philippine
Government Chart of Accounts under the New Government Accounting System per
Commission on Audit Circular No. 2004-008 dated September 20, 2004, as amended, to
the Revised Chart of Accounts for National Government Agencies under Commission on
Audit Circular No. 2013-002 dated January 30, 2013, additional accounts/revised
description/title of accounts and relevant Accounting Policies and Guidelines in the
implementation thereof.

(iii) COA Circular No. 2015-02 dated 9 March 2015 – Prescribing Supplementary Guidelines
on the Preparation of Financial Statements and other financial reports, the transitional
provisions of the implementation of the PPSAS and the coding structure.

(iv) COA Circular No. 2015-05 dated 16 July 2015 –Availability of Web-based Annual
Financial Reporting System (AFRS) and Budget and Financial Accountability Reporting
System (BFARS).

(v) COA Circular No. 2015-07 dated 22 October 2015 – Prescribing the Government
Accounting Manual for the Use of All National Government Agencies.

(vi) COA Circular No. 2015-009 dated 1 December 2015 – Prescribing the Revised Chart of
Accounts for Local Government Units.

(vii) COA Circular No. 2015-010 dated 1 December 2015 - Adoption of the Revised Chart of
Accounts (RCA) for Government Corporations (GCs) which consist of Government-Owned
or Controlled Corporations (GOCCs), Government Financial Institutions (GFIs),
Government Instrumentalities with Corporate Powers (GJCPs)/ Government Corporate
Entities (GCEs), and their Subsidiaries, and Water Districts.

(viii) COA Resolution No. 2013-007 dated 29 January 2013 – Adoption of Philippine Public
Sector Standards on Auditing.

(ix) COA Resolution No. 2014-003 dated 24 January 2014 – Adoption of the Philippine Public
Sector Accounting Standards.

(x) COA-DBM Joint Circular No. 2013-1 dated 15 March 2013 – prescribing the Revised
Guidelines on the Submission of Quarterly Accountability Reports on Appropriations,
Allotments, Obligations and Disbursements.

(xi) COA-DBM Joint Circular No 2014-l dated 2 July 2014 – Guidelines Prescribing the Use of
Modified Formats of the Budget and Financial Accountability Reports (BFARs).

(xii) COA-DBM-DOF Joint Circular No. 2013-1 dated 6 August 2013 - prescribing the Unified
Accounts Code Structure (UACS).
18

(xiii) COA-DBM-DOF Joint Circular No. 2014-1 dated 7 November 2014 – Enhancement of the
Unified Accounts Code Structure (UACS) per COA-DBM-DOF Joint Circular No. 2013-1.

(xiv) Executive Order No. 171 dated September 5, 2014 – Creating an Inter-Agency Committee
to Oversee the Review, Implementation and Monitoring of the United Nations Convention
against Corruption (UNCAC).

(xv) Executive Order No. 176 dated 1 December 2014 – Institutionalizing the Integrity
Management Programs (IMP as the National Corruption Prevention Program in all
Government Departments, Bureaus, Offices, Agencies, including Government-Owned and
Controlled Corporations, Government Financial Institutions, State Universities and
Colleges and Local Government Units through the Establishment of Integrity Management
Systems (IMS).

(xvi) OP Administrative Order No. 46 dated 30 March 2015 – Directing All Heads of
Departments and Agencies to Implement Measures to facilitate Budget Execution for
Fiscal Year (FY) 2015.

(xvii) OP Memorandum Circular No. 76 dated 15 April 2015 – Urging All Government
Departments, Bureaus, Offices, Agencies, including Government-Owned and Controlled
Corporations, Government Financial Institutions, State Universities and Colleges and
Local Government Units to implement the Integrity Management Program (IMP) through
the establishment of Integrity Management Systems (IMS) and Adopt the IMP Handbook
for the purpose.

(xviii) DBM Circular Letter No. 2011-3 dated 19 May 2011 – Prescribing the Philippine
Government Internal Audit Manual.

(xix) DBM National Budget Memorandum No. 117 dated 1 March 2013 – Adoption of the
Performance-Informed Budget Structure for the National Expenditure Program/General
Appropriation Act.

(xx) DBM-DILG-DOF-NEDA Joint Memorandum Circular No. 2015-1 dated 14 February 2015 –
Adoption of the Local Government Units Public Financial Management Reform Roadmap
and Implementation Strategy.

(xxi) BTR Treasury Circular No. 03-2013 dated 11 December 2013 – Implementing Guidelines
of the Memorandum of Agreement for Authorized Agent Banks/Authorized Depository
Banks in the Collection and Remittance of National Internal Revenue Taxes/Customs
Duties/Other National Collections under the Treasury Single Account.